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London - British mobile phone giant Vodafone said on Tuesday that annual net profits tumbled 90 percent after taking a vast impairment charge relating to its businesses in debt-laden eurozone nations Italy and Spain.
Earnings after taxation nosedived to £673m in the group's financial year to the end of March, compared with £7.0bn in 2011-2012, Vodafone said in a results statement.
Group revenues retreated 4.2% to £44.44bn.
Vodafone's businesses in Italy and Spain have been hit hard by the impact of the ongoing eurozone sovereign debt crisis.
The company said on Tuesday that it took a second-half hit of £1.8bn, taking its total impairment charge to £7.7bn for Italy and Spain.
"We have faced headwinds from a combination of continued tough economic conditions, particularly in Southern Europe, and an adverse European regulatory environment," said Vodafone chief executive Vittorio Colao in the statement.
He added: "The board remains focused on balancing ongoing shareholder remuneration with the long-term investment needs of the business, and going forward aims at least to maintain the ordinary dividend per share at current levels."
Vodafone's full-year shareholder dividend stood at 10.19 pence per share, up 7% from the previous year.
The company will meanwhile take a 3.2-billion dividend from US company Verizon Wireless, in which Vodafone has a 45% stake.
In a conference call, Colao told reporters that Vodafone had "nothing new to announce" about its stake in Verizon Wireless, despite ongoing media speculation, and added that it was a "fantastic asset".
Turning to the outlook, Vodafone forecast that adjusted operating profit would stand at between £12bn-£12.8bn in the current 2013-2014 financial year.
