London — Britain’s Vodafone — parent of SA's Vodcom — forecast a jump in cash generation this year, allowing it to reward shareholders with a higher dividend as it eases back on network investment and moves to solve problems in India where a new price war has broken out. The company’s upbeat outlook sent its shares more than 4% higher, relieving investors after a tough year în which the group suffered a €6.1bn loss, dragged down by last year’s $5bn write-down on Vodafone India. CEO Vittorio Colao said that excluding the Indian business, adjusted core earnings rose 5.8% to €14.1bn, beating market expectations, and growing faster than revenue as the company improved efficiency. He said earnings would grow by between 4% and 8% this year to €14bn-€14.5bn. Analysts had pencilled in €13.8bn. Vodafone would generate about €5bn of cash, up from €4.1bn last year. The company said the level of cash generation, combined with growth and a robust balance sheet enabled it to “confirm a progressiv...
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