Vodafone hit by Euro crisis
Goverment austerity measures across Europe forces telecommunications giant forced to write off billions in debt
Vodafone was hit by the eurozone debt crisis yesterday as it was forced to write off £5.9bn in debt in its Spanish and Italian businesses, reports the Daily Mail. European customers of the mobile phone giant either traded down to cheaper phone packages or stopped using their phones completely, wiping out Vodafone’s half-year profits. The effect of austerity measures by governments across Europe resulted in a £492m pre-tax loss for the six months to 30 September. It managed to wipe out its corporation tax bill against a string of investments as it prepares to upgrade to the new 4G network.