Notes to the consolidated financial statements (continued) 166 Vodafone Group Plc Annual Report 2024 2020 7. Discontinued operations and assets held for sale (continued) Vodafone Italy The results of discontinued operations in Italy are detailed below. 166 Vodafone Group Plc Annual Report 2024 Strategic report Governance
Financials
Other information
2024 €m
2023 €m
2022 €m
Revenue Cost of sales Gross profit
4,579 (3,438) 1,141 (244) (760) (51)
4,722 (3,532) 1,190 (238) (710) (66)
4,944 (3,521) 1,423 (276) (671) (42)
Selling and distribution expenses Administrative expenses Net credit losses on financial assets
Other expense Operating profit Investment income Financing costs Profit before taxation Income tax credit
– –
(1)
(1)
86
175
433
–
1
(86)
(93) 82 11 93
(99)
–
335 202 537
23 23
Profit after tax of discontinued operations
After tax loss on the re-measurement of disposal group (Loss)/profit for the financial year from discontinued operations
(83) (60)
–
–
93
537
Total comprehensive (expense)/income for the financial year from discontinued operations Attributable to owners of the parent 537 The consideration for Vodafone Italy is comprised of €8 billion cash to be paid on completion. A proportion of the consideration is related to future services to be provided by the Group to Swisscom. For the year ended 31 March 2024, the Group recorded a non-cash charge of €83 million (pre and post-tax), included in discontinued operations, as a result of the re-measurement of Vodafone Italy to its fair value less costs to sell. The charge mostly results from the non-recognition of €93 million (€67 million net of tax) depreciation and amortisation of non-current assets from the date Vodafone Italy was classified as held for sale. (71) 80 The fair value of the Group’s equity interest at 31 March 2024 was determined with reference to the consideration expected to be received from the agreed sale to Swisscom, less adjustments for estimated completion adjustments, consideration for future services to be received by Swisscom from the Group and the elimination of intercompany debt. This approach was considered to result in a level 2 valuation in accordance with IFRS 13 as, certain completion related adjustments and estimates of the value of the future services to be provided, are not observable.
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