Vodafone, the world's second largest mobile operator by revenue, posted full-year earnings in line with forecasts on Tuesday and raised its dividend policy despite taking a hit on its key Indian business.Vodafone, which has 341 million subscribers including its share of those from affiliates, said it would take an impairment charge of 2.3 billion pounds ($3.32 billion) on its fast-growing Indian unit after facing high spectrum charges and new licences.The higher spectrum costs in India and a fierce price war in the market had weighed on Vodafone ahead of the results, but its financial performance for the year was either in line or slightly ahead of forecasts.Vodafone said its 1 billion pound cost savings programme was delivered one year ahead of schedule and a new two-year, 1 billion pound cost programme would begin.It reported revenues and adjusted operating profit slightly ahead of expectations and core earnings in line with forecasts. Group revenues declined 2.3 percent after exclusing benefits from foreign exchange and acquisitions.For the outlook for 2010/11, it said it would target a three-year dividend per share growth of 7 percent per year. Its target for 2011 adjusted operating profit was also in line with analyst expectations."Vodafone's financial results exceeded our upgraded guidance on all measures," Chief Executive Vittorio Colao said. "We are creating a stronger Vodafone, which is positioned to return to revenue growth during the 2011 financial year, as economic recovery should benefit our key markets."(Reporting by Kate Holton)(For more business news on Reuters Money visit http://www.reutersmoney.in)News posted by www.newsinfoline.com
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