Vodafone operating profits increase, but write-downs create loss

Vodafone’s core profits jumped 46% to $6.9 billion for the six months ending Sept. 30. The company’s strong performance was driven by its worldwide subscriber base, which grew 15% to 95.6 million since March.

But those numbers were muted by the large write-offs the company recorded during the quarter. Chief among these was a $6.8 billion goodwill write-down related to its purchase of Mannesmann. Including other write-downs and interest payments, the company’s pre-tax loss was $12.6 billion.

Despite this loss, investors are focusing on Vodafone’s core numbers, sending its shares up more than 2.5% to $26.05 in early afternoon trading.

In addition to the earnings news, Vodafone reportedly denied rumors that it plans to cut its work force in half. However, the company is exploring cost-cutting measures, a spokeswoman said.

--Toby Weber, staff writer