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Vodafone – Financials
Notes to the Consolidated Financial Statements continued
3. Segment analysis
The Group has a single group of related services and products, being the supply of communications services and products. Segment information is provided on the
basis of geographic areas, being the basis on which the Group manages its world wide interests. Revenue is attributed to a country or region based on the location of
the Group company reporting the revenue. Inter-segment sales are charged at arms length prices. The Group uses adjusted operating profit for internal performance
analysis and, therefore, the Group’s measure of segment profit is adjusted operating profit, being operating profit excluding non-operating income of associates,
impairment losses and other income and expense.
During the year ended 31 March 2008, the Group early adopted IFRS 8 “Operating Segments”. The Group also changed its organisation structure such that the Group’s
associated undertaking in France, SFR, is now managed within the Europe region and reported within Other Europe. As a result, prior period disclosures have been
amended to conform to the current year presentation.
Segment Common Intra-region Regional Inter-region Group
Adjusted
operating
revenue functions revenue revenue revenue revenue profit
£m £m £m £m £m £m £m
31 March 2008
Germany 5,397 (128) 5,269 (10) 5,259 1,265
Italy 4,435 (33) 4,402 (6) 4,396 1,573
Spain 5,063 (96) 4,967 (4) 4,963 1,282
UK 5,424 (46) 5,378 (10) 5,368 431
Arcor 1,632 (86) 1,546 (1) 1,545 225
Other Europe (1) 4,583 (64) 4,519 (3) 4,516 1,430
Europe 26,534 (453) 26,081 (34) 26,047 6,206
Eastern Europe 3,154 – 3,154 (35) 3,119 332
Middle East, Africa & Asia (2) 4,547 (1) 4,546 (24) 4,522 769
Pacific 1,645 – 1,645 (14) 1,631 181
Associates – US – – – – – 2,447
EMAPA 9,346 (1) 9,345 (73) 9,272 3,729
Common functions (3) – 170 – 170 (11) 159 140
Group 35,880 170 (454) 35,596 (118) 35,478 10,075
31 March 2007
Germany 5,443 (123) 5,320 (9) 5,311 1,354
Italy 4,245 (44) 4,201 (5) 4,196 1,575
Spain 4,500 (106) 4,394 (3) 4,391 1,100
UK 5,124 (54) 5,070 (9) 5,061 511
Arcor 1,441 (27) 1,414 – 1,414 171
Other Europe (1) 4,275 (82) 4,193 (4) 4,189 1,448
Europe 25,028 (436) 24,592 (30) 24,562 6,159
Eastern Europe 2,477 – 2,477 (31) 2,446 184
Middle East, Africa & Asia (2) 2,565 – 2,565 (9) 2,556 694
Pacific 1,399 – 1,399 (11) 1,388 159
Associates – US – – – – – 2,077
Associates – Other – – – – – 130
EMAPA 6,441 – 6,441 (51) 6,390 3,244
Common functions (3) – 168 – 168 (16) 152 128
Group 31,469 168 (436) 31,201 (97) 31,104 9,531
31 March 2006
Germany 5,754 (143) 5,611 (9) 5,602 1,496
Italy 4,363 (39) 4,324 (4) 4,320 1,672
Spain 3,995 (100) 3,895 (2) 3,893 968
UK 5,048 (50) 4,998 (10) 4,988 698
Arcor 1,320 (34) 1,286 – 1,286 139
Other Europe (1) 4,697 (78) 4,619 (3) 4,616 1,452
Europe 25,177 (444) 24,733 (28) 24,705 6,425
Eastern Europe 1,435 – 1,435 (14) 1,421 176
Middle East, Africa & Asia (2) 1,784 – 1,784 (15) 1,769 523
Pacific 1,335 – 1,335 (14) 1,321 140
Associates – US – – – – – 1,732
Associates – Other – – – – – 192
EMAPA 4,554 – 4,554 (43) 4,511 2,763
Common functions (3) – 145 – 145 (11) 134 211
Group 29,731 145 (444) 29,432 (82) 29,350 9,399
Notes:
(1) Adjusted operating profit includes £425 million (2007: £517 million; 2006: £479 million), representing the Group’s share of results in associated undertakings.
(2) Adjusted operating profit includes £2 million (2007: £nil; 2006: £nil), representing the Group’s share of results in associated undertakings.
(3) Adjusted operating profit includes £2 million (2007: £1 million; 2006: £8 million), representing the Group’s share of results in associated undertakings.
96 Vodafone Group Plc Annual Report 2008