Vodafone 2014 Annual Report Download - page 47

Discontinued operations
On 2 September 2013 the Group announced it had reached
an agreement with Verizon Communications Inc. to dispose of its
US group whose principal asset was its 45% interest in VZW. The Group
ceased recognising its share of results in VZW on 2 September
2013, and classied its investment as a held for sale asset and the
results as a discontinued operation. The transaction completed
on 21 February 2014.
The table below sets out all of the elements relating to this discontinued
operation within the consolidated income statement.
2014
£m
2013
£m
Share of result in associate 3,191 6,422
Net nancing income/(costs) 27 (56)
Prot before taxation 3,218 6,366
Taxation relating to performance
ofdiscontinued operations (1,709) (1,750)
Post-tax prot from discontinued
operations 1,509 4,616
The table below sets the gain on disposal of discontinued operations.
2014
£m
2013
£m
Gain on disposal of discontinued
operations before tax 44,996 –
Other items arising from the disposal 1,603 –
Net gain on disposal of discontinued
operations 46,599 –
Prot for the nancial year from
discontinued operations 48,108 4,616
Earnings/(loss) per share
We have redened adjusted earnings per share to exclude amortisation
of acquired customer base and brand-related intangible assets,
restructuring costs and one-off items in relation to both the disposal
of our interest in Verizon Wireless and the acquisition of the remaining
23% of Vodafone Italy. Comparatives have been restated consistently.
Adjusted earnings per share was 17.54 pence, a decrease of 12.8%
year-on-year, reecting lower adjusted operating prot primarily due
to the cessation of equity accounting for VZW from 2 September
2013, partially offset by a reduction in shares in issue arising from the
Group’s share buyback programme.
Basic earnings per share from continuing operations increased
to 42.10pence (2013: loss of 15.66 pence) primarily due to the
recognition of the additional deferred tax assets in the current year.
Statutory basis
2014
£m
2013
£m
Prot attributable to equity shareholders 59,254 413
Adjustments:
Impairment loss 6,600 7,700
Amortisation of acquired customer base
and brand intangible assets 551 249
Restructuring costs 355 311
Other income and expense 717 (468)
Discontinued and other items (46,520) –
Non-operating income and expense 149 (10)
Investment income and nancing costs 78 51
(38,070) 7,833
Taxation (17,511) (150)
Removal of VZW trading results and tax after
2 September11,019 (2,669)
Non-controlling interests (50) (28)
Adjusted prot attributable to equity
shareholders 4,642 5,399
Million Million
Weighted average number of shares
outstanding – basic 26,472 26,831
Weighted average number of shares
outstanding – diluted 26,682 26,831
Note:
1 The adjustment for the year ended 31 March 2014 primarily relates to the removal of tax in respect of our
US group after 2 September 2013, whereas the adjustment for the year ended 31 March 2013 includes the
removal of both prot contributions and tax for the period from 2 September 2012 to 31 March 2013.
Annual Report 2014 45Overview
Strategy
review Performance Governance Financials
Additional
information
References to “Q4” are to the quarter ended 31 March 2014 unless otherwise stated. References to the “second
half of the year” are to the six months ended 31 March 2014 unless otherwise stated. References to the “year”
or “nancial year” are to the nancial year ended 31 March 2014 and references to the “prior nancial year”
are to the nancial year ended 31 March 2013 unless otherwise stated. References to the “2014 nancial
year”, “2015 nancial year”, “2016 nancial year”, “2017 nancial year” and the “2019 nancial year” are to the
nancial years ending 31 March 2014, 2015, 2016, 2017 and 2019, respectively. References to “calendar Q3
2014” are to the quarter ended 30 September 2014, unless otherwise stated.