Vodafone Group Plc, the world’s largest mobile-phone company, reported a smaller-than-estimated decline in full-year profit.
The company reported that it made a net profit of just under 8 billion pounds for the year, down from 8.6 billion pounds in 2010. Revenue was up 3 percent to 45.9 billion pounds.
Service revenue, which makes up the bulk of the company’s revenue, rose 2.1% in fiscal 2011. In the fourth quarter, service revenue increased 2.5% from a year earlier, underpinned by a strong performance in Africa, the Middle East and Asia Pacific.
The impairment charge was due mainly to higher discount rates on services and sharply increased interest rates in the five countries. The charge was partly offset by a 2.8 billion pounds gain on the sale of Vodafone’s stake in China Mobile and 1.8 billion pounds from the settlement of a tax case.