text:
Grand Canyon, White Rocks
Posted in Environment, Landscape architecture, Museums, Places, Water having no comments »
Posted in Environment, Landscape architecture, Museums, Places, Water having no comments »
Ethne Clarke's book, An Infinity of Graces tells the story of Cecil Ross Pinsent, an English architect in the Italian landscape. Mr Pinsent, as described by Ms. Clarke, "was trained not to look at any style…but with the full knowledge of what had been done in the past…." The time of Mr. Pinsent's work was a time of change in the theories of English gardening. What ultimately became acceptable was the style forged by Gertrude Jekyll and Edwin Lutyens, a style with some formality mixed with informality.
Pinsent left England, drawn to Florence, Italy, for its architecture and the expatriate world who lived there Ms. Clarke writes. She continues that the Italian Renaissance garden was a template for perfection in the landscape. Pinsent was an architect. He was hired to renovated both indoor and out. He treated the outdoors as an extension of the house, the garden separated into different rooms. The beds were simple and cypress was often used to frame a view, the author writes. Potted citrus or roses were used as transition points. His commissioned work included: I Tatti for Mary and George Berenson, Le Balze for Charles Augustus Strong, and Gli Scafari for Sybil and Percy Lubbock.
Poignantly Ethne Clarke ends An Infinity of Graces by writing, "an insertion of architecture within Tuscan landscape was not a matter of camouflage but a continuous relation with history of landscape."
Posted in Art, Books, flowers in design, Gardens, Historic Homes, History, Horticulture, Landscape architecture, Museums, Places, plants, Trees, Water having no comments »
Tapis vert, tapis vert, tapis vert. You are slowly walking between columns of oak and ilex with a carpet of grass under your feet. Yes, pull away those blankets of snow. There is a gateway ahead of you. A hermitage high on the hill. Just climb those scala santa.
Edith Wharton wrote about the tapis vert of the Villa Centinale near Sienna, Italy in the early 1900's. The villa is simple, not grand like the Roman villas. "The glory of Centinale is its park," wrote Ms. Wharton in her book, "Italian Villas and Their Gardens" published by The Mount Press, Rizzoli.
Vivian Russell in her book, "Edith Wharton's Italian Gardens" published by Bullfinch Press Book, Little, Brown & Co. , 2000, writes, "Behind the villa … a long green walk extends between high walls. The tapis vert leads to a crossroads."
So back on the shores of the USA, what constitutes a tapis vert? One could call it wishful thinking for some sign of grass below the white of snow. The green that we can write home about.
Posted in Art, Books, Environment, Flowers, Gardens, Historic Homes, History, Horticulture, Landscape architecture, Museums, Places, Trees having no comments »
Ethne Clarke paints a fascinating picture of an American expatriate who designs one of the foremost gardens in Great Britain pre and post WWI in her book, "Hidcote, The Making of a Garden," published by W.W. Norton & Co., 2009. Major Lawrence Johnston's garden, Hidcote is a garden treasure in England, the first garden to be taken on by the National Trust in 1948. One of the ways Johnston collected plants was by subscribing to a plant exploration or by going on an expedition. Ms. Clarke explains that Johnston's prowess in propagation, cultivation, and the recognition of his masterful skills at Hidcote affirmed his application to the Royal Horticultural Society. As a Society member (voted in in 1922) he could subscribe (help underwrite) or travel with the Society in search of new plants. That he did. The author of the revised edition of "Hidcote, The Making of a Garden," writes, "His plant-hunting began gently, with a trip in 1922 to the Swiss Alps in the company of the great alpine plantsman E.A. Bowles." Johnston's expeditions took him to South Africa for four months. Back again to Mt. Kilimanjaro a year later where, Ms. Clarke writes, "…he found a fine hypericum (today Hypericum 'Hidcote' is a favorite yellow-flowered shrub in mixed borders.)
Serre de la Madone
Major Johnston created a second garden in the South of France, Serre de la Madone, close to Edith Wharton's French garden, Chateau Sainte-Claire in the hills about Hyere. Johnston's wordily expedition "in the gardens of the northern hemisphere; thus the mountain ranges of Africa, China, India and Persia were (their) prime hunting grounds, since the conditions of these temperate regions most closely simulated those in European gardens," explains the author, Ethne Clarke. Indeed Major Johnston had the enviable sites of a Northern and Southern European garden to cultivate his new found plants.
For more Hidcote pictures go to:
Posted in Books, Gardens, Historic Homes, History, Landscape architecture, Places, plants, Trees, Water having no comments »
Date: Undated
In November 2013, the Springfield Museums unveiled a new exhibit of Currier & Ives prints from the collection of the Michele and Donald D'Amour Museum of Fine Arts. The display, titled The Connoisseurship of Currier & Ives, is on view through June 15, 2014. The Museum is home to one of the largest permanent collections of Currier & Ives prints.
This exhibition traces the connoisseurship of Currier and Ives over the last century. The images which inspired 20th century artists and collectors to create Currier & Ives themed works will be juxtaposed against original 19th century influences for the firm's designs. A special section of the show is dedicated to authenticity and explores the differences between original and reproduced Currier & Ives lithographs.
This information was provided from the site of Springfield Museums.
Posted in Uncategorized having no comments »
Beautiful book to read and that is just the start of it!
Posted in Art, Books, flowers in design, Gardens, Historic Homes, History, Landscape architecture, Museums, Places having no comments »
The Blush rose is white tinged with red. When cutting these stems under conditioned water I noticed how straight the stems were. Not only straight but like a rod with some reinforcement. First I arranged the roses in a cube, its square holding eight roses in upright fashion. I studied the arrangement over night and decided the next morning to lop them off as to create a square of Blush roses on top of the cube. The stems had turned, going in the direction they cared to go. The floor and sides inside the cube were lined with Calathea flowers, big, fleshy, and full of light, dark and a tinge of red.
Four Blush roses were planted heads up in glass pyramidal vases.
Now the Burghers of Calais struck me. How the roses slightly turned yet their mass still there. I had no control over this turning. Could Auguste Rodin, the sculpture of the Burghers of Calais, commissioned by the town of Calais, France, mold his men cloaked in their robes of importance and have complete control of the movement of the rod and metal of his material? His men were sculpted in unity and mass, slightly turning a head, a shoulder, to define their acceptance, pride, abjection, defeat. Yet their lives were spared because the king's wife would not want her expectant child to have the blood of the rose spilt on her cradle's sheets.
Posted in Art, Books, Flowers, flowers in design, History, Horticulture, Museums, Places having no comments »


text:
Latest in Namco's ever-expanding Klonoa series, this time with an action-RPG focus.
ComputerAndVideoGames is part of Future plc, an international media group and leading digital publisher. We produce content across five core areas:
© Future Publishing Limited, Quay House, The Ambury, Bath, BA1 1UA. All rights reserved. England and Wales company registration number 2008885.

subset: commoncrawl


text:
How Well Do You Know 2014's Biggest Pop Song Lyrics?
Take our quiz!
10 Reasons Why Charli XCX Is The Most Exciting New Pop Star Of 2014
Count 'em!
MUCH Contest: Solaris Winter Music Festival 2014
Enter now!
We Award The Biggest And Best Music Videos Of 2014!
Who made the list?
December 11th, 2012
It looks like we're going to have to wait until 2013 to see a royal wedding between Kim Kardashian and Kanye West. While Kardashian's marriage to Kris Humphries lasted just 72 days in 2011, the pair can't agree on how to proceed with the divorce, dragging out the proceedings with a court date finally set for February.
A source told HollywoodLife.com "[Kim and Kris are] both stubborn and they won't end it because they both want to prove their point." While Kim, 32, initially filed for divorce, 27-year-old Kris attempted to get an annulment on the basis of fraud.
Meanwhile, Kim's boyfriend Kanye West is said to be tired of the divorce drama as he is desperate to marry the star. A source said "The only thing he wants to give Kim for Christmas he can't … he wants her to be free from this dude. It's been going on way too long and he hates this. Really son, you don't understand how much he despises him. He hates this dude with a passion. He is crazy when it comes to this and rightfully so. He gave her the world already, so now he's got to get her the entire planet." Kanye, and Ryan Seacrest. This wedding special is going to be a gold mine.
Tags: Kanye West, kim kardashian, News
Posted on Tuesday, December 11th, 2012 at 10:55 am by Allison and is filed under News.Tweet


text:
Sponsored By
Become a Sponsor
Spinitron Home
Member Logon
About Spinitron
KDHX's web site
SPINITRON home
Current playlist
Program schedule
KDHX's web site
BrowseArtists ·
Disks · Labels
Search the selected month
Here We Go Again buy it
DISK BY Willie Nelson and Wynton Marsalis merch
(Bluenote 2011)
Songs from Here We Go Again logged in KDHX's playlists:
Busted Buy it!
cryin' time Buy it!
Hallelujah I Just Love Her So Buy it!
hallelujah i love her so Buy it!
Hit The Road Jack Buy it!
I'm Movin' On Buy it!
I'm Movin' on Buy it!
Unchain My Heart Buy it!
what i'd say Buy it!
Copyright ©2014 Spinitron, LLC and KDHX. 'Spinitron', the speedy-vinyl
logo and the Spintron logotype are trademarks.KDHX contact: membership.


text:
- Apr 28, 2007
eBay Find of the Day: 1997 Lotus Elise FIA GT-1
For an all too brief period in the mid-90s, racing fans were treated to the sight of the fastest road-going exotic cars in the world competeting against each other on the world's stage. It began in 1994 with the victory of the Dauer 962LM. The 962LM was an 80's era Group C Porsche 962 that had been modified for road use, and then brought back to Le Mans under the new GT rules. Following the success of the McLaren F1 taking 1st, 3rd,4th, and 5th overall at Le Mans in 1995 with an almost stock car, many other teams started preparing cars like the Ferrari F40, Jaguar XJ220 and Lotus Esprit for the BPR GT series, which was later subsumed by the FIA..
What began with production exotics being modified with the necessary safety equipment to race, quickly evolved into manufacturers seizing an opportunity. The rules required a minimum number of road legal examples to be built and then modified for racing. Companies like Porsche and Mercedes seized on this to design pure race cars which were then dialed back just enough so they could be licensed, which ultimately resulted inthe 911 GT1 and CLK-GTR.
Lotus created a GT1 version version of the Esprit, which had been racing with some success in lower classes like GT2 and the SCCA World Challenge in the US. The then twenty-year-old Esprit just couldn't cut in the big leagues, though, so the new turbocharged V-8 was moved to a new platform. The Lotus Elise was still new to the world when Lotus decided to stretch the body longer and wider and put the V-8 in the back for the 1997 FIA GT series. The Lotus V-8 was also inadequate for competition and the race cars instead used the LT5 V-8 that Lotus had designed earlier for the Corvette ZR-1. Unfortunately, the little racers from Hethel couldn't keep up with the Germans and a lack of resources prevented adequate development so the project was largely abandoned. One of the seven Elise GT1s that were built, however, is available on eBay right now and, at the time of writing, hasn't yet hit the reserve price.
Thanks to Mike for the tip!
[Source: eBay]


text:
Table of Contents
Washington, D.C. 20549
Form 20-F
For the fiscal year ended: March 31, 2012
Date of event requiring this shell company report:
For the transition period from: to
Commission file number: 001-10086
(Exact name of Registrant as specified in its charter)
(Jurisdiction of incorporation or organization)
(Address of principal executive offices)
Rosemary Martin (Group General Counsel and Company Secretary)
tel +44 (0) 1635 33251, fax +44 (0) 1635 238 080
(Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person)
Securities registered or to be registered pursuant to Section 12(b) of the Act:
Securities registered or to be registered pursuant to Section 12(g) of the Act:
Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act:
Indicate the number of outstanding shares of each of the issuers classes of capital or common stock as of the close of the period covered by the annual report.
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act
Yes þ No ¨
If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934.
Yes ¨ No þ
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:
Yes þ No ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes ¨ No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of accelerated filer and large accelerated filer in Rule 12b-2 of the Exchange Act. (Check one):
Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing:
If Other has been checked in response to the previous question, indicate by check mark which financial statement item the registrant has elected to follow
Item 17 ¨ Item 18 ¨
If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes ¨ No þ
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Enterprise and total communications
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Table of Contents
Mobile for Good: the work of the Vodafone Foundations
Table of Contents
Table of Contents
This section presents our operating performance, providing commentary on how the revenue and the adjusted EBITDA performance of the Group and its operating segments within Europe, Africa, Middle East and Asia Pacific, and Non-Controlled Interests and Common Functions have developed in the last three years.
2012 financial year compared to the 2011 financial year
Group revenue was up 1.2% to £46.4 billion, with service revenue of £42.9 billion, an increase of 1.5%* on an organic basis. Our overall performance reflects continued strong demand for data services and further voice penetration growth in emerging markets, offset by regulatory changes, ongoing competitive pressures and challenging macroeconomic conditions in a number of our mature markets. As a result of the leap year, service revenue growth of 2.3%* in Q4 benefited from the additional day by around 1 percentage point.
AMAP service revenue was up by 8.0%*, with a strong performance in India, Qatar, Ghana and Vodacom and a return to growth in Egypt offset by a decline in Australia.
In Europe, service revenue was down by 1.1%* reflecting challenging macroeconomic conditions in Southern Europe partially offset by growth in Germany, the UK, the Netherlands and Turkey.
Adjusted EBITDA and profit
Group adjusted EBITDA was down 1.3% to £14.5 billion, as revenue growth was offset by higher customer investment due to increased smartphone penetration.
Adjusted operating profit was down 2.4% to £11.5 billion, driven by a reduction in our share of profits from associates following the disposal of our 44% interest in SFR in June 2011. Our share of profits of Verizon Wireless grew by 9.3%* to £4.9 billion.
Operating profit increased by 100% to £11.2 billion, primarily due to the gain on disposal of the Groups 44% interest in SFR and 24.4% interest in Polkomtel, and lower impairment losses compared to the prior year.
An impairment loss of £4.0 billion was recorded in relation to Italy, Spain, Portugal and Greece, primarily driven by lower projected cash flows within business plans and an increase in discount rates, resulting from adverse changes in the economic environment.
Net (financing costs)/investment income
Net financing costs before income from investments increased from £852 million to £1,642 million, primarily due to the decision to increase the fixed rate debt mix, which is expected to result in lower interest in future periods, and the subsequent recognition of mark-to-market losses. Income from investments decreased by £64 million as a result of the disposal of the Groups 3.2% interest in China Mobile Limited and the Groups interests in SoftBank Mobile Corp. Limited during the 2011 financial year.
Table of Contents
The adjusted effective tax rate for the year ended 31 March 2012 was 25.3%. This is in line with our mid 20s adjusted effective tax rate guidance range.
The Groups share of associates tax declined due to the absence of the tax related to SFR following the disposal of our 44% interest in June 2011.
Income tax expense has increased in the year ended 31 March 2012 largely due to the favourable impact of a tax settlement in the 2011 financial year.
Earnings per share
Adjusted earnings per share was 14.91 pence, a decline of 11.0% year-on-year, reflecting the loss of our 44% interest in SFR and Polkomtels profits, the loss of interest income from investment disposals and mark-to-market items charged through finance costs, partially offset by a reduction in shares arising from the Groups share buyback programme. Basic earnings per share was 13.74 pence (2011: 15.20 pence), reflecting the profit on disposal of our 44% interest in SFR and 24.4% interest in Polkomtel and lower impairment charges compared to the prior financial year, all of which are excluded from adjusted earnings per share.
Table of Contents
Revenue increased by 0.5% including a 0.5 percentage point impact from favourable foreign exchange rate movements. On an organic basis service revenue declined by 1.1%* primarily due to the impact of MTR cuts, competitive pricing pressures and continued economic weakness, partially offset by growth in data revenue. Growth in the UK, Germany, the Netherlands and Turkey was offset by declines in most other markets, in particular, Italy, Spain and Greece.
Adjusted EBITDA declined by 3.5% including a 1.1 percentage point favourable impact from foreign exchange rate movements. On an organic basis adjusted EBITDA decreased by 4.5%*, resulting from higher customer investment due to the increased penetration of smartphones, and a reduction in service revenue in most markets, partially offset by direct cost efficiencies.
Service revenue increased by 1.2%* as strong growth in data and enterprise revenue more than offset the impact of an MTR cut effective from 1 December 2010 and increasing competitive pressures. Data revenue grew by 21.3%* driven by a higher penetration of smartphones, an increase in those sold with a data bundle and the launch of prepaid integrated tariffs. Enterprise revenue grew by 5.6%* driven by significant customer wins and the success of converged service offerings. A number of innovative products were launched during the second half of the 2012 financial year, including OfficeNet, a cloud based solution.
The roll out of LTE has continued, following the launch of services in the prior financial year. Nearly 2,700 base stations had been upgraded to LTE at 31 March 2012, providing approximately 35% household coverage.
Adjusted EBITDA declined by 1.1%* as the higher revenue was offset by restructuring costs and regulation changes.
Service revenue declined by 3.4%* as a result of weak economic conditions, intense competition and the impact of an MTR cut effective from 1 July 2011. Strong data revenue growth of 16.8%* was driven by mobile internet which benefited from a higher penetration of smartphones and an increase in those sold with a data bundle. From Q3, all new consumer contract customers are now on an integrated tariff. Enterprise revenue grew by 5.1%* with a strong contribution from Vodafone One Net, a converged fixed and mobile solution, and growth in the customer base. Fixed line growth benefited from strong customer additions although slowed in Q4 due to intense competition.
Adjusted EBITDA decreased by 6.4%*, and adjusted EBITDA margin fell by 1.9* percentage points resulting from the decline in service revenue partially offset by operating cost efficiencies such as site sharing agreements and outsourcing of network maintenance to Ericsson.
Service revenue declined by 9.4%* impacted by intense competition, continuing economic weakness and high unemployment during the year, which have driven customers to reduce or optimise their spend on tariffs. Data revenue increased by 18.4%* benefiting from the penetration of integrated voice, SMS and data tariffs initially launched in October 2010. Improvements were seen in fixed line revenue which increased by 7.3%* resulting from a competitive proposition leading to good customer additions. Mobile customer net additions were strong as a result of our more competitive tariffs and a focus on improving the retention of higher-value customers.
Adjusted EBITDA declined by 24.9%*, with a 5.5* percentage point fall in adjusted EBITDA margin, primarily due to lower revenue with sustained investment in acquisition and retention costs. This was partially offset by operating cost efficiencies.
Service revenue increased by 1.6%* driven by an increase in data and consumer contract revenue supported by the success of integrated offerings. This was partially offset by the impact of an MTR cut effective from 1 April 2011 and lower consumer confidence leading to reduced out-of-bundle usage. Data revenue grew by 14.5%* due to higher penetration of smartphones and an increase in those sold with a data bundle.
Adjusted EBITDA increased by 5.0%* and adjusted EBITDA margin improved by 0.6* percentage points, due to a number of cost saving initiatives, including acquisition and retention efficiencies.
Other Europe
Service revenue increased by 1.7%* as growth in Albania, Malta, the Netherlands and Turkey more than offset a decline in the rest of the region, particularly in Greece, Portugal and Ireland, which continued to be impacted by the challenging macroeconomic environment and competitive factors. Service revenue in Turkey grew by 25.1%* driven by strong growth in consumer contract and data revenue resulting from an expanding contract customer base and the launch of innovative propositions. In the Netherlands service revenue increased by 2.1%*, driven by an increase in the customer base, partially offset by MTR cuts, price competition and customers optimising tariffs.
Adjusted EBITDA grew by 1.7%*, with strong growth in Turkey, driven by a combination of service revenue growth and cost efficiencies, partially offset by declines in the majority of the other markets.
Table of Contents
Africa, Middle East and Asia Pacific
Revenue grew by 4.2% after a 4.2 percentage point adverse impact from foreign exchange rate movements. On an organic basis service revenue grew by 8.0%* driven by customer and data growth, partially offset by the impact of MTR reductions. Growth was driven by strong performances in India, Vodacom, Ghana and Qatar and a return to growth in Egypt, offset by service revenue declines in Australia and New Zealand.
Adjusted EBITDA grew by 2.9% after a 4.8 percentage point adverse impact from foreign exchange rate movements. On an organic basis, Adjusted EBITDA grew by 7.8%* driven primarily by strong growth in India and Vodacom and improved contributions from Ghana and Qatar, offset in part by declines in Egypt and Australia.
Service revenue grew by 19.5%,* driven by an 11.8% increase in the customer base, strong growth in incoming and outgoing voice minutes and 51.3%* growth in data revenue. 3G services were available to Vodafone customers in 860 towns and cities across 20 circles at 31 March 2012. Growth also benefited from mobile operators starting to charge for SMS termination during the second quarter of the 2012 financial year. At 31 March 2012 the customer base had increased to 150.5 million, with data customers totalling 35.4 million, a year-on-year increase of 81.5%. This was driven by an increase in data enabled handsets and the impact of successful marketing campaigns. Whilst the market remains highly competitive, the effective rate per minute remained broadly stable during the year, with promotional offers offsetting headline price increases.
Adjusted EBITDA grew by 22.9%* driven by the increase in revenue and economies of scale, partially offset by higher customer acquisition costs and increased interconnection costs. Full year adjusted EBITDA margin increased 0.8* percentage points to 26.3%, driven by cost efficiencies and scale benefits.
Service revenue grew by 7.1%,* driven by service revenue growth in South Africa of 4.4%*, where strong net customer additions and growth in data revenue was partially offset by the impact of MTR cuts (effective 1 March 2011 and 1 March 2012). Despite competitive pricing pressures, data revenue in South Africa grew by 24.3%,* driven by higher smartphone penetration and data bundles leading to a 35.4% increase in active data customers to 12.2 million at 31 March 2012.
Vodacoms mobile operations outside South Africa delivered strong service revenue growth of 31.9%*2, driven by customer net additions and the simplification of tariff structures in Mozambique and Tanzania. M-Pesa, our mobile phone based money transfer service, continues to perform well in Tanzania with over 3.1 million active users.
Adjusted EBITDA increased by 11.3%* driven by robust service revenue growth and continued focus on operating cost efficiencies.
Table of Contents
Other Africa, Middle East and Asia Pacific
Organic service revenue, which now includes Australia, declined by 1.8%* with both New Zealand and Australia being impacted by MTR cuts effective from 6 May 2011 and 1 January 2012, respectively. In Australia, despite improvements in network and customer operations performance, service revenue declined by 8.8%* driven by the competitive market and weakness in brand perception following the network and customer service issues experienced from late 2010 to early 2011 and further accelerated by MTR cuts. On 22 March 2012, Vodafone Hutchison Australia appointed Bill Morrow as its new CEO. In Egypt service revenue was suppressed by the challenging economic and political environment, however, organic growth of 1.4%* was achieved as a result of an increased customer base and strong data usage. In Qatar an increase in the customer base delivered service revenue growth of 27.1%*, despite a competitive pricing environment. Service revenue in Ghana grew by 29.2%* through strong gains in customer market share.
Adjusted EBITDA margin declined 2.2* percentage points, driven by the service revenue decline in Australia and the challenging economic and competitive environment in Egypt, partially offset by growth in Qatar and Ghana.
Safaricom, Vodafones associate in Kenya, grew service revenue by 13.6%*, driven by increases in customer base, voice usage and M-Pesa activity. Adjusted EBITDA margin improved in the second half of the 2012 financial year through a tariff increase in October, operating cost efficiencies and a strengthening of the local currency to take the margin for the 2012 financial year to 35.0%.
Non-Controlled Interests
Verizon Wireless1 2 3
In the United States Verizon Wireless reported 4.6 million net mobile customer additions bringing its closing mobile customer base to 93.0 million, up 5.2%.
Service revenue growth of 7.3%* continues to be driven by the expanding customer base and robust growth in data ARPU driven by increased penetration of smartphones.
Adjusted EBITDA margin remained strong despite the competitive challenges and macroeconomic environment. Efficiencies in operating expenses and customer acquisition costs resulting from lower volumes have been partly offset by a higher level of customer retention costs reflecting the increased demand for smartphones.
Verizon Wireless net debt at 31 March 2012 totalled US$6.4 billion4 (31 March 2011: net debt US$9.8 billion4), after paying a dividend to its shareholders of US$10 billion on 31 January 2012.
Table of Contents
2011 financial year compared to the 2010 financial year
Group revenue increased by 3.2% to £45,884 million and Group service revenue increased by 2.4% to £42,738 million. On an organic basis Group service revenue increased by 2.1%*, with a 0.8 percentage point improvement between the first and second half of the 2011 financial year as both Europe and AMAP delivered improved organic service revenue trends.
In Europe service revenue fell by 0.4%* with a decline of 0.3%* in the second half of the 2011 financial year. Both the UK and Germany performed well delivering full year service revenue growth of 4.7%* and 0.8%* respectively. Spain continued to experience economic pressures which intensified competition leading to a 6.9%* decline in service revenue. Service revenue also declined by 2.1 %* in Italy driven by a challenging economic and competitive environment combined with the impact of MTR cuts. Our improved commercial offers in Turkey delivered service revenue growth of 28.9%*, despite a 52% cut in MTRs which was effective from 1 April 2010. Challenging economic and competitive conditions continued in our other central European businesses where service revenue growth was also impacted by MTR cuts. European enterprise revenue increased by 0.5%* with improved roaming activity and important customer wins.
In AMAP service revenue grew by 9.5%*. Vodacom continued to perform well, with strong data revenue growth from mobile broadband offsetting weaker voice revenue which was impacted by two MTR cuts during the year. In India service revenue increased by 16.2%*, driven by an increase in the mobile customer base and a more stable pricing environment towards the end of the 2011 financial year. In Qatar the customer base reached 757,000 by 31 March 2011, with 45% of the population actively using Vodafone services less than two years after launch. On an organic basis, service revenue in Egypt declined by 0.8%* where performance was impacted by the socio-political unrest during the fourth quarter of the 2011 financial year.
Adjusted EBITDA and profit
Adjusted EBITDA decreased by 0.4% to £14,670 million with a 1.1 percentage point decline in both the reported and organic adjusted EBITDA margin.
In Europe adjusted EBITDA decreased by 3.7%*, with a decline in adjusted EBITDA margin of 1.7 percentage points, primarily driven by a reduction in service revenue in most markets and higher investment in acquisition and retention costs, partially offset by operating cost efficiencies.
In AMAP adjusted EBITDA increased by 7.5%*, driven primarily by growth in India, together with improvements in Vodacom, Ghana, New Zealand and Qatar, partially offset by a slight decline in Egypt. The adjusted EBITDA margin fell 0.6* percentage points, the two main factors behind the decline being higher recurring licence fee costs in India and the change in regional mix from the strong growth in India.
Adjusted operating profit grew by 3.1% as a result of an increase in the Groups share of results of Verizon Wireless partially offset by the decline in Group adjusted EBITDA. The Groups share of results in Verizon Wireless, the Groups associate in the United States, increased by 8.5%* primarily due to the expanding customer base, robust data revenue, efficiencies in operating expenses and lower acquisition costs partially offset by higher customer retention costs reflecting the increased demand for smartphones in the United States.
The Group recorded other net income of £5,342 million, primarily in relation to a £2.8 billion net gain on the sale of the Groups interest in China Mobile Limited, £1.8 billion on the settlement of a tax case and £0.5 billion from the disposal of investment in SoftBank Mobile Corp. Limited.
Operating profit decreased by 41.0% primarily due to higher impairment losses compared to the prior year. Impairment losses totalling £6,150 million were recorded relating to our businesses in Spain (£2,950 million), Italy (£1,050 million), Ireland (£1,000 million), Greece (£800 million) and Portugal (£350 million) primarily resulting from increased discount rates as a result of increases in government bond rates together with lower cash flows within business plans, reflecting weaker country-level macroeconomic environments. The impairment loss in the 2010 financial year was £2,100 million.
Profit for the year decreased by 8.7%.
Table of Contents
Net investment income/(financing costs)
Net financing costs before income from investments decreased from £1,024 million to £852 million primarily due to a reduction in net debt, partially offset by an increase in average interest rates for debt denominated in US dollars. In addition, £138 million of interest was capitalised compared to £1 million in the prior year. At 31 March 2011 the provision for potential interest charges arising on settlement of outstanding tax issues was £398 million (31 March 2010: £1,312 million), with the reduction primarily reflecting the settlement of a tax case.
The adjusted effective tax rate for the year ended 31 March 2011 was 24.5%. This is in line with the adjusted effective tax rate for the year ended 31 March 2010 of 24.0%. Tax on adjustments to derive adjusted profit before tax includes tax payable on the gain on the disposal of the Groups 3.2% interest in China Mobile Limited.
Income tax expense includes a credit of £929 million arising as a result of the settlement of a tax case in July 2010.
Earnings per share
Adjusted earnings per share increased by 4.0% to 16.75 pence for the year ended 31 March 2011 due to growth in adjusted earnings and a reduction in shares arising from the Groups share buyback programme. Basic earnings per share decreased to 15.2 pence primarily due to the £6,150 million of impairment charges partially offset by a gain on disposal of the Groups 3.2% interest in China Mobile Limited and the settlement of a tax case.
Table of Contents
Revenue declined by 2.5% reflecting a 3.2 percentage point impact from unfavourable foreign exchange rate movements. On an organic basis service revenue declined by 0.4%* reflecting reductions in most markets offset by growth in Germany, the UK, the Netherlands and Turkey. The decline was primarily driven by lower voice revenue resulting from continued market and regulatory pressure on pricing and the challenging economic climate, partially offset by growth in data and fixed line revenue.
Adjusted EBITDA decreased by 7.1% including a 3.5 percentage point impact from unfavourable exchange rate movements. On an organic basis adjusted EBITDA decreased by 3.7%*, with a 1.7 percentage point decline in adjusted EBITDA margin resulting from a reduction in service revenue in most markets and higher customer investment, partially offset by operating cost savings.
Service revenue increased by 0.8%* driven by strong data and messaging revenue growth. Data revenue grew by 27.9%* as a result of increased penetration of smartphones and Superflat Internet tariffs. Mobile revenue remained stable in the fourth quarter of the 2011
financial year despite an MTR cut effective from 1 December 2010. Enterprise revenue grew by 3.6%* driven by strong customer and data revenue growth.
Adjusted EBITDA declined by 1.5%*, with a 1.6 percentage point reduction in the adjusted EBITDA margin. This decline was driven by increased customer acquisition and retention, contributed to by the launch of the iPhone in the third quarter, partially offset by operating cost efficiencies.
During the 2011 financial year we acquired LTE spectrum in Germany and launched LTE services towards the end of the year, initially targeting rural areas underserved by fixed broadband.
Service revenue declined by 2.1%* primarily driven by the challenging economic and competitive environment, the impact of MTR cuts and customer tariff optimisation. The average contract customer base grew by 12.6% enabling the partial offset of these pressures. Data revenue growth remained strong at 21.5%* driven by the high level of customers migrating to smartphones and taking advantage of data plans. There was continued investment to improve quality and coverage of the network. Fixed line revenue continued to grow with the broadband customer base reaching 1.7 million at 31 March 2011 on a 100% basis.
Adjusted EBITDA decreased by 3.1%*, with a fall in the adjusted EBITDA margin of 1.0 percentage point, as a result of the decline in service revenue and higher investment in acquisition and retention costs partially offset by a reduction in operating expenses.
Service revenue declined by 6.9%* impacted by continued intense competition, general economic weakness and the penetration of lower priced tariffs into the customer base. New integrated plans were introduced in the third quarter in response to the demand for combined voice and data tariffs driven by the increase in smartphones. Data revenue grew by 14.8%* driven by mobile broadband and mobile internet. One-off items contributed to a 1.8* percentage point improvement to service revenue growth for the fourth quarter of the 2011 financial year.
Adjusted EBITDA declined 16.8%*, with a 3.8 percentage point fall in the adjusted EBITDA margin, due to lower service revenue and proportionately higher acquisition and retention costs, partially offset by a reduction in operating expenses.
Service revenue increased by 4.7%* driven by data revenue growth due to increasing penetration of smartphones and mobile internet bundles and strong net contract customer additions, which more than offset continued competitive pressures and weaker prepaid revenue. The MTR cuts announced in March 2011 were expected to have a significant negative impact on revenue growth during the 2012 financial year.
Table of Contents
Adjusted EBITDA increased by 8.0%* with the adjusted EBITDA margin increasing by 0.7 percentage points, reflecting higher service revenue partially offset by higher customer acquisition and retention costs.
Other Europe
Service revenue increased by 0.5%* with growth in Turkey and the Netherlands being partially offset by declines in other markets due to the challenging economic environment and intense competitive factors. In Turkey service revenue grew by 28.9%* driven by strong
growth in both data and voice revenue, despite a 52% cut in MTRs effective from 1 April 2010. In Greece service revenue declined by 19.4%* with intense competition driving a reduction in prepaid revenue and economic factors leading to customer tariff optimisation.
Adjusted EBITDA declined by 2.4%*, with declines in all markets except Turkey and the Netherlands, due primarily to lower service revenue and higher acquisition and retention costs partially offset by operating cost efficiencies.
Africa, Middle East and Asia Pacific
Revenue grew by 20.0% with an 8.5 percentage point benefit from foreign exchange rate movements and the full year impact of the consolidation of Vodacom results from 18 May 2009 partially offset by the impact of the creation of the Vodafone Hutchison Australia (VHA) joint venture on 9 June 2009. On an organic basis service revenue grew by 9.5%* despite the impact of MTR reductions and difficult economic environments. The growth was driven by a strong performance in India and continued growth from Vodacom and the rest of the region, other than Egypt where performance was impacted by the socio-political unrest during the fourth quarter of the 2011 financial year.
Adjusted EBITDA grew by 20.8% with foreign exchange rate movements contributing 8.0 percentage points of growth. On an organic basis Adjusted EBITDA grew by 7.5%* driven primarily by growth in India, together with improvements in Vodacom, Ghana, Qatar and New Zealand, partially offset by a decline in Egypt following pricing pressure and socio-political unrest.
Table of Contents
Service revenue grew by 16.2%* including a 1.7* percentage point benefit from Indus Towers, the Groups network sharing joint venture. Growth was driven by a 39.0% increase in the average mobile customer base and stable usage per customer trends, partially offset by a fall in the effective rate per minute due to an increase in the penetration of lower priced tariffs into the customer base and strong competition in the market.
February 2011 saw the launch of commercial 3G services following the purchase of 3G spectrum in May 2010 and subsequent network build. By 31 March 2011 1.5 million customers had activated their 3G access.
Adjusted EBITDA grew by 15.1%* driven by the increase in the customer base and economies of scale which absorbed pricing and cost pressures.
Service revenue grew by 5.8%* driven by South Africa where growth in data revenue of 35.9%*1 offset a decline in voice revenue caused by MTR cuts effective from 1 March 2010 and 1 March 2011.
In South Africa data revenue growth was driven by a 48.9%* increase in data usage due to strong growth in mobile connect cards and smartphones. In addition, successful commercial activity, particularly in off-peak periods, drove higher voice usage during the 2011 financial year which partially offset the impact of MTR cuts. Net customer additions returned to pre-registration levels for the first time in the third quarter of the 2011 financial year, with the trend continuing during the fourth quarter of the 2011 financial year with net additions of 1.2 million.
In Vodacoms operations outside South Africa service revenue growth continued with strong performances from Tanzania and Mozambique. Trading conditions remain challenging in the Democratic Republic of Congo and the Gateway operations.
Adjusted EBITDA grew by 4.9%* driven by the increase in service revenue, strong handset sales and lower interconnection costs, partially offset by higher operating expenses.
On 1 April 2011 Vodacom refreshed its branding to more closely align with that of the Group.
Other Africa, Middle East and Asia Pacific
Service revenue grew by 7.2%* with growth across all markets except Egypt. In Qatar the customer base reached 757,000 by 31 March 2011, with 45% of the population actively using Vodafone services. The decline in Egypt service revenue was driven by a combination of MTR reductions, competitive pressure on pricing and socio-political unrest during the fourth quarter of the 2011 financial year, offset in part by strong customer and data revenue growth during the year. In Ghana service revenue growth of 21.0%* was supported by competitive tariffs and improved brand awareness.
VHA integration remained on track and a number of important initiatives were completed during the 2011 financial year to begin realising the benefits of the merger. Contact centre operations were consolidated into two major centres in Hobart and Mumbai India, substantial progress was made in the consolidation of the retail footprint, and a major refit of retail stores was underway. VHA appointed new suppliers for network managed services, core, transmission and IT managed services.
Adjusted EBITDA increased by 5.1%* driven by growth in Ghana, New Zealand and Qatar partially offset by a decline in Egypt resulting primarily from the lower effective price per minute but also impacted by the socio-political unrest during the fourth quarter of the 2011 financial year.
Non-Controlled Interests
Verizon Wireless2 3 4
In the United States Verizon Wireless reported 2.6 million net mobile customer additions bringing its mobile customer base to 88.4 million at 31 March 2011, a 3.1% increase. Customer growth improved in the fourth quarter of the 2011 financial year following the launch of the iPhone 4 on the Verizon Wireless network in February 2011.
Service revenue growth of 5.8%* was driven by the expanding customer base and robust data revenue primarily derived from growth in the penetration of smartphones.
The adjusted EBITDA margin remained strong despite the competitive challenges and economic environment. Efficiencies in operating expenses and lower customer acquisition costs resulting from lower volumes were partly offset by a higher level of customer retention costs reflecting the increased demand for smartphones.
As part of the regulatory approval for the Alltel acquisition, Verizon Wireless was required to divest overlapping properties in 105 markets. On 26 April 2010 Verizon Wireless completed the sale of network and licence assets in 26 markets, encompassing 0.9 million customers, to Atlantic Tele-Network for US$0.2 billion. On 22 June 2010 Verizon Wireless completed the sale of network assets and mobile licences in the remaining 79 markets to AT&T Mobility for US$2.4 billion. As a result the Verizon Wireless customer base reduced by approximately 2.1 million net customers on a 100% basis, partially offset by certain adjustments in relation to the Alltel acquisition.
On 23 August 2010 Verizon Wireless acquired a spectrum licence, network assets and related customers in southwest Mississippi and in Louisiana, formerly owned by Centennial Communications Corporation, from AT&T Inc. for cash consideration of US$0.2 billion. This acquisition was made to enhance Verizon Wireless network coverage in these two locations.
Verizon Wireless net debt at 31 March 2011 totalled US$9.8 billion5 (31 March 2010: US$22.6 billion5).
Table of Contents
Performance against 2012 financial year guidance
Based on guidance foreign exchange rates, our adjusted operating profit for the 2012 financial year was £11.8 billion, at the top end of the £11.0 billion to £11.8 billion range set in May 2011. On the same basis, our free cash flow was £6.2 billion, in the middle of the £6.0 billion to £6.5 billion range.
2013 financial year guidance
Guidance for the 2013 financial year is based on our current assessment of the global macroeconomic outlook and assumes foreign exchange rates of £1:1.23 and £1: US$1.62. In addition, we will no longer receive a dividend from SFR after the sale of our stake during the 2012 financial year. We have restated the 2012 financial year adjusted operating profit and free cash flow for both these changes in the table above.
Therefore, on an underlying basis, we expect growth in adjusted operating profit, and stability in free cash flow, compared with the 2012 financial year.
Adjusted operating profit is expected to be in the range of £11.1 billion to £11.9 billion and free cash flow in the range of £5.3 billion to £5.8 billion, excluding any income dividends received from Verizon Wireless.
We expect the Group adjusted EBITDA margin decline to continue its improving trend, supported by continued strong growth and operating leverage in our AMAP region, and improving control of commercial costs in Europe. We expect capital expenditure to remain broadly steady on a constant currency basis.
In November 2010 we gave annual guidance ranges for organic service revenue growth and free cash flow which were based on the prevailing macroeconomic environment, regulatory framework and foreign exchange rates. Given larger MTR reductions than previously envisaged, we now expect organic service revenue growth in the 2013 financial year to be slightly below our previous medium term guidance range. We will provide an update on revenue prospects for the 2014 financial year when we publish our results for the year ending 31 March 2013. We expect the Group adjusted EBITDA margin to stabilise by March 2014.
Our medium term free cash flow guidance is £5.5 billion to £6.5 billion per annum to March 2014. This was based on the prevailing foreign exchange rates in November 2010, including an exchange rate of £1: 1.15. Based on the £1: 1.23 foreign exchange rate used for the 2013 financial guidance, the equivalent range is £5.2 billion to £6.2 billion. This cash generation underpins the three year 7% per annum dividend per share growth target issued in May 2010. We continue to expect that total ordinary dividends per share will be no less than 10.18 pence for the 2013 financial year.
Guidance for the 2013 financial year and the medium term is based on our current assessment of the global macroeconomic outlook and assumes foreign exchange rates of £1:1.23 and £1:US$1.62. It excludes the impact of licence and spectrum purchases, income dividends from Verizon Wireless, material one-off tax-related payments, restructuring costs and any fundamental structural change to the eurozone. It also assumes no material change to the current structure of the Group.
With respect to the 7% per annum dividend per share growth target, as the Groups free cash flow is predominantly generated by companies operating within the eurozone, we have assumed that the euro to sterling exchange rate remains within 5% of the above guidance foreign exchange rate.
Actual foreign exchange rates may vary from the foreign exchange rate assumptions used. A 1% change in the euro to sterling exchange rate would impact adjusted operating profit by £40 million and free cash flow by approximately £30 million and a 1% change in the dollar to sterling exchange rate would impact adjusted operating profit by approximately £50 million.
Table of Contents
1. Regulatory decisions and changes in the regulatory environment could adversely affect our business.
Risk: We have ventures in both emerging and mature markets, spanning a broad geographical area including Europe, Africa, Middle East, Asia Pacific and the United States. We need to comply with an extensive range of requirements that regulate and supervise the licensing, construction and operation of our telecommunications networks and services. Pressure on political and regulatory institutions both to deliver direct consumer benefit and protect consumers interests, particularly in recessionary periods, can lead to adverse impacts on our business. Financial pressures on smaller competitors can drive them to call for regulators to protect them. Increased financial pressures on governments may lead them to target foreign investors for further taxes or licence fees.
2. We could suffer loss of consumer confidence and/or legal action due to a failure to protect our customer information.
Risk: Mobile networks carry and store large volumes of confidential personal and business voice traffic and data. We host increasing quantities and types of customer data in both enterprise and consumer segments. We need to ensure our service environments are sufficiently secure to protect us from loss or corruption of customer information. Failure to adequately protect customer information could have a material adverse effect on our reputation and may lead to legal action against the Group.
3. Our business could be adversely affected by a failure or significant interruption to telecommunications networks.
Risk: We are dependent on the continued operation of telecommunications networks. As the importance of mobile communication in everyday life, as well as during times of crisis, increases, organisations and individuals look to us to maintain service. Major failures in the network may result in service being interrupted resulting in serious damage to our reputation and consequential customer and revenue loss.
.4. Technological advances in handsets and use of alternative communication services may result in less demand for our traditional service offerings.
Risk: Strategic handset and technology suppliers are developing mobile content and services. Advancements in smartphone branding and technology places more focus on devices rather than the underlying services provided by mobile operators. The development of applications which make use of the internet as a substitute for some of our more traditional services, such as messaging and voice, could erode revenue. Reduced demand for our core services of voice, messaging and data and the development of services by handset suppliers could significantly impact our future profitability.
5. Increased competition may reduce our market share and profitability.
Risk: We face intensifying competition; in particular competing with established competitors in mature markets and competing with new entrants in emerging markets, where all operators are looking to secure a share of the potential customer base. Competition could lead to a reduction in the rate at which we add new customers, a decrease in the size of our market share and a decline in our average revenue per customer, as customers may choose to receive telecommunications services or other competing services from alternate providers. Competition can also lead to an increase in customer acquisition and retention costs. The focus of competition in many of our markets has shifted from acquiring new customers to retaining existing customers, as the market for mobile telecommunications has become increasingly mature.
6. Our business may be impaired by actual or perceived health risks associated with the transmission of radio waves from mobile telephones, transmitters and associated equipment.
Risk: Concerns have been expressed that the electromagnetic signals emitted by mobile telephone handsets and base stations may pose health risks. We are not aware that such health risks have been substantiated, however, in the event of a major scientific finding supporting this view this might result in prohibitive legislation being introduced by governments (or the European Union), a major reduction in mobile phone usage (especially by children), a requirement to move base station sites, significant difficulty renewing or acquiring site leases and/or major litigation. An inadequate response to electromagnetic fields (EMF) issues may result in loss of confidence in the industry and Vodafone.
7. One or more countries may exit the eurozone.
Risk: In light of recent economic conditions in Europe, there is a possibility of one or more countries exiting the eurozone, causing currency devaluation in those countries and possibly leading to a reduction in our revenue and impairment of our financial and non-financial assets. This may also lead to adverse economic impacts elsewhere.
8. We may be unable to obtain additional/renew sufficient spectrum with an adequate return.
Risk: The spectrum we use for the delivery of our services is regulated in each of our markets. The regulators supervise the allocation of frequency spectrum and monitor and enforce regulation and competition laws which apply to the mobile telecommunications industry. Decisions by regulators regarding the granting, amendment or renewal of licences, to us or to third parties, including the implementation of unsustainable cost and revenue models, could adversely affect our future operations in these geographic areas. Our mobile data strategy and roll out of 4G/LTE services is dependent upon us being able to renew and obtain additional spectrum licences.
Table of Contents
9. We may not satisfactorily resolve major tax disputes.
Risk: We operate in many jurisdictions around the world and from time to time have disputes on the amount of tax due. In particular, in spite of a recent positive India Supreme Court decision relating to an ongoing tax case in India, as set out on pages 139 and 140, the Indian government is proposing retroactive tax legislation which would in effect overturn the courts decision.
Such or similar types of action in other jurisdictions may expose us to significant additional tax liabilities which would affect the results of the business.
10. A malicious attack on our network may be successful and disrupt our services or compromise our data.
Risk: There is a risk that an attack by a malicious individual or group could be successful on our networks. This could lead to a loss of confidential customer data or availability of critical systems. Our network is also susceptible to interruption due to a physical attack and theft of our network components as the value and market for network components increases (for example copper, batteries, generators and fuel).
11. Changes in assumptions underlying the carrying value of certain Group assets could result in impairment.
Risk: Due to the substantial carrying value of goodwill under International Financial Reporting Standards (IFRS), revisions to the assumptions used in assessing its recoverability, including discount rates, estimated future cash flows or anticipated changes in operations, could lead to the impairment of certain Group assets. While impairment does not impact reported cash flows, it does result in a non-cash charge in the consolidated income statement and thus no assurance can be given that any future impairments would not affect our reported distributable reserves and, therefore, our ability to make dividend distributions to our shareholders or repurchase our shares.
Table of Contents
Eurozone risk
Country and currency risk
Recent conditions in the eurozone have resulted in a higher risk of disruption and business risk from high currency volatility and/or the potential of an exit of one or more countries from the euro.
As part of our response to these conditions we have reviewed our existing processes and policies, and in places, evolved them with the aim of both minimising the Groups economic exposure and to preserve our ability to operate in a range of potential conditions that may exist in the event of one or more of these future events.
Our ability to manage these risks needs to take appropriate account of our needs to deliver a high quality service to our customers, meet licence obligations and the significant capital investments we may have made and may need to continue to make in the markets most impacted.
Currency related risks
While our share price is denominated in sterling, the majority of our financial results are generated in other currencies. As a result the Groups operating profit is sensitive to either a relative strengthening or weakening of the major currencies in which it transacts.
The Operating results section of the annual report on pages 40 to 49 sets out a discussion and analysis of the relative contributions of the Groups Europe and AMAP regions and the major geographical markets in each, to the Groups service revenue and adjusted EBITDA performance. Our markets in Italy, Ireland, Greece, Portugal and Spain have been most directly impacted by the current market conditions and in order of contribution, represent 17% (Italy), 8% (Spain), 3% (Portugal) and 3% (Ireland and Greece combined) of the Groups adjusted EBITDA. An average 3% decline in the sterling equivalent of these combined geographical markets due to currency revaluation would reduce Group adjusted EBITDA by £0.1 billion. The Groups foreign currency earnings are diversified through its 45% equity interest in Verizon Wireless, which operates in the United States and generates its earnings in US dollars. Verizon Wireless, which is equity accounted, contributed 42% of the Groups adjusted operating profit for the year ended 31 March 2012.
The Group employs a number of mechanisms to manage elements of exchange rate risk at a transaction, translation and economic level. At the transaction level our policies require foreign exchange risks on transactions denominated in other currencies above certain de minimis levels to be hedged. Further, since the Companys sterling share price represents the value of its future multi-currency cash flows, principally in euro, US dollars and sterling, we aim to align the currency of our debt and interest charges in proportion to our expected future principal multi-currency cash flows, thereby providing an economic hedge in terms of reduced volatility in the sterling equivalent value of the Group and a partial hedge against income statement translation exposure, as interest costs will be denominated in foreign currencies.
In the event of a countrys exit from the eurozone, this may necessitate changes in one or more of our entities functional currency and potentially higher volatility of those entities trading results when translated into sterling, potentially adding further currency risk.
A summary of this sensitivity of our operating results and our foreign exchange risk management policies is set out within Financial risk management Market risk Foreign exchange management within note 21 to the consolidated financial statements.
Operational planning
We have worked to develop operational plans to use as a basis for continuity planning across the Group in the event of significant exchange rate volatility and/or the withdrawal of one, or a small number of countries, from the euro. We have categorised at risk countries into three categories based on risk profile and identified three broad areas of operational risks for the Group where work has been focused, being:
Financial/investment risk: Our activities are focused on counterparty risk management and in particular the protection and availability of cash deposits and investments. Exposures in relation to liquid Group investments have been reviewed and actions have been taken to reduce counterparty limits with certain financial institutions and to convert a significant proportion of euro denominated holdings and deposits into sterling and US dollar investments. Existing Group policy requires cash sweep arrangements, to ensure no operating company has more than 5 million on deposit on any one day. Further, the Group has had in place for a number of years collateral support agreements with a significant number of its counterparties to pass collateral to the Group under certain circumstances. The Group has a net £980 million of collateral assets in its statement of financial position at 31 March 2012. Further information is provided within Financial risk management Credit risk within note 21 to the consolidated financial statements.
Trading risks: We have investigated the structure of existing procurement contracts and we have started the process of amending certain contractual clauses to place the Group in a better position in the event of the exit of a country from the eurozone.
Business continuity risks: We have identified a number of key business continuity priorities which are focused on planning to allow migration to a more cash-based business model in the event banking systems are frozen, developing dual currency capability in contract customer billing systems or ensuring the ability to move these contract customers to prepaid methods of billing, and the consequential impacts to tariff structures. We have also put in place contingency plans with key suppliers that would assist us to continue to support our network infrastructure, retail operations and employees.
The Group continues to maintain appropriate levels of cash and short-term investments in many currencies and, with a carefully controlled group of counterparties, to minimise the risks to the ongoing access to that liquidity and therefore to the ability of the Group to settle debts as they become due. Further information is provided within Financial risk management Liquidity risk within note 21 to the consolidated financial statements.
Risk of change in carrying amount of assets and liabilities
The main potential short-term financial statement impact of the current economic uncertainties is the potential impairment of non-financial and financial assets.
The Group has significant amounts of goodwill, other intangible assets and plant, property and equipment allocated to, or held by, companies operating in the eurozone. We have performed impairment testing for each country in Europe as at 31 March 2012 and identified aggregate impairment charges of £4.0 billion in relation to Vodafone Italy, Spain, Greece and Portugal. Further detail on this exercise together with the sensitivity of the results of this assessment to reasonably possible adverse assumptions is set out in note 10 to the consolidated financial statements.
Our operating companies in Italy, Ireland, Greece, Portugal and Spain have billed and unbilled trade receivables totalling £2.0 billion. IFRS contains specific requirements for impairment assessments of financial assets. We have a range of credit exposures and provisions for doubtful debts that are generally made by reference to consistently applied methodologies overlaid with judgements determined on a case-by-case basis reflecting the specific facts and circumstances of the receivable. Detailed disclosures made in relation to provisions against loans and receivables as well as disclosures about any loans and receivables that are past due at the end of the period, concentrations of risk and credit risk more generally as set out in Financial risk management Credit risk within note 21 to the consolidated financial statements.
Table of Contents
Consolidated statement of financial position
Intangible assets
At 31 March 2012 our intangible assets were £59.5 billion (2011: £68.6 billion) with goodwill comprising the largest element at £38.4 billion (2011: £45.2 billion). The decrease primarily resulted from impairment losses of £3.9 billion, amortisation of £3.5 billion and unfavourable foreign exchange rate movements of £4.2 billion partially offset by £2.9 billion of additions. Refer to note 10 to the consolidated financial statements for further information on the impairment charge.
Property, plant and equipment
Property, plant and equipment decreased to £18.7 billion at 31 March 2012 from £20.2 billion at 31 March 2011 predominantly as a result of £4.4 billion of depreciation charges and unfavourable foreign exchange rate movements of £1.3 billion partially offset by £4.7 billion of additions.
Investments in associates
Investments in associates decreased to £35.1 billion at 31 March 2012 from £38.1 billion at 31 March 2011 primarily due to a reduction of £4.0 billion in relation to the sale of our 44% interest in SFR and £4.0 billion of dividends received partially offset by our share of the results of associates, after deductions of interest, tax and non-controlling interest, which contributed £5.0 billion, mainly arising from our investment in Verizon Wireless.
Other non-current assets
Other non-current assets decreased to £6.3 billion at 31 March 2012 (2011: £7.4 billion) mainly due to other investments which totalled £0.8 billion at 31 March 2012 compared to £1.4 billion at 31 March 2011.
Current assets
Current assets increased to £20.0 billion at 31 March 2012 from £17.0 billion at 31 March 2011 due to an increase in cash and short-term investments resulting from the element of the proceeds from the disposal of our 44% interest in SFR not yet utilised for the share buyback programme, and an increase in other receivables due to the second tranche of the proceeds from the sale of our interest in SoftBank Mobile Corp. Limited which was received in April 2012.
Total equity and liabilities
Total equity
Total equity decreased to £78.2 billion at 31 March 2012 from £87.6 billion at 31 March 2011. The profit for the year of £7.0 billion was more
than offset by equity dividends of £6.7 billion, other comprehensive loss of £4.7 billion, share buyback of £4.7 billion and £1.9 billion in relation to the acquisition of non-controlling interests, primarily in India. Total non-controlling interests have increased by £1.3 billion primarily as a result of the exercise of put options over non-controlling interests during the year.
Long-term borrowings and short-term borrowings decreased to £34.6 billion at 31 March 2012 from £38.3 billion at 31 March 2011 mainly as a result of foreign exchange rate movements, bond repayments during the year and settlement of certain put options held by the Essar Group.
Taxation liabilities
Current tax liabilities decreased to £2.1 billion at 31 March 2012 from £2.3 billion at 31 March 2011 mainly as a result of the resolution and payment of longstanding tax disputes.
Other current liabilities
Other current liabilities increased to £15.9 billion at 31 March 2012 from £15.3 billion at 31 March 2011. Trade payables at 31 March 2012 were equivalent to 43 days (2011:37 days) outstanding, calculated by reference to the amount owed to suppliers as a proportion of the amounts invoiced by suppliers during the year. It is our policy to agree terms of transactions, including payment terms, with suppliers and it is our normal practice that payment is made accordingly.
Contractual obligations and contingencies
A summary of our principal contractual financial obligations is shown below. Further details on the items included can be found in the notes to the consolidated financial statements. Details of the Groups contingent liabilities are included in note 29 to the consolidated financial statements.
Equity dividends
The table below sets out the amounts of interim, final and total cash dividends paid or, in the case of the final dividend for the 2012 financial year, proposed, in respect of each financial year.
Table of Contents
We provide returns to shareholders through dividends and have historically paid dividends semi-annually, with a regular interim dividend in respect of the first six months of the financial year payable in February and a final dividend payable in August. The directors expect that we will continue to pay dividends semi-annually.
In November 2011 the directors announced an interim dividend of 3.05 pence per share representing a 7.0% increase over last years interim dividend. In addition a special, second interim, dividend of 4.0 pence per share was paid in February 2012 following the receipt of a US$4.5 billion (£2.9 billion) income dividend from Verizon Wireless. The directors are proposing a final dividend of 6.47 pence per share. Total dividends, excluding special dividends, for the year increased by 7.0% to 9.52 pence per share.
In May 2010 the directors issued a dividend per share growth target, excluding special dividends, of at least 7% per annum for each of the financial years in the period ending 31 March 2013, assuming no material adverse foreign exchange rate movements. We expect that total ordinary dividends per share will therefore be no less than 10.18 pence for the 2013 financial year. See page 50 for the assumptions underlying this expectation.
Liquidity and capital resources
The major sources of Group liquidity for the 2012 and 2011 financial years were cash generated from operations, dividends from associates, disposal of investments and borrowings through short-term and long-term issuances in the capital markets. We do not use non-consolidated special purpose entities as a source of liquidity or for other financing purposes.
Our key sources of liquidity for the foreseeable future are likely to be cash generated from operations and borrowings through long-term and short-term issuances in the capital markets as well as committed bank facilities.
Our liquidity and working capital may be affected by a material decrease in cash flow due to factors such as reduced operating cash flow resulting from further possible business disposals, increased competition, litigation, timing of tax payments and the resolution of outstanding tax issues, regulatory rulings, delays in the development of new services and networks, licence and spectrum payments, inability to receive expected revenue from the introduction of new services, reduced dividends from associates and investments or increased dividend payments to non-controlling shareholders. Please see the section titled Principal risk factors and uncertainties on pages 51 to 53.
We are also party to a number of agreements that may result in a cash outflow in future periods. These agreements are discussed further in Option agreements and similar arrangements at the end of this section.
Wherever possible, surplus funds in the Group (except in Albania, Egypt, India, Qatar and Vodacom) are transferred to the centralised treasury department through repayment of borrowings, deposits, investments, share purchases and dividends. These are then loaned internally or contributed as equity to fund our operations, used to retire external debt, invested externally or used to fund shareholder returns.
Cash flows
Cash generated by operations decreased by 3.7% to £14.8 billion primarily driven by working capital movements and lower adjusted adjusted EBITDA.
Free cash flow decreased by 13.4% to £6.1 billion primarily due to increased cash capital expenditure, working capital movements and lower dividends from associates1, offset by lower payments for taxation.
Cash capital expenditure increased by £0.8 billion, driven by a reduction in working capital creditors and increased investment, particularly in Vodacom and Germany.
Payments for taxation decreased by 24.2% to £2.0 billion primarily due to accelerated tax depreciation in the United States and the timing of tax payments in Italy.
Dividends received from associates and investments1 decreased by £0.3 billion due to the loss of dividends resulting from the disposal of the Groups interest in SFR and China Mobile Limited. Net interest payments were stable at £1.3 billion.


text:
|Bible in Basic English (BBE)
|New International Version (NIV)
|34 Who has knowledge of the mind of the Lord? or who has taken part in his purposes?
|34 "Who has known the mind of the Lord? Or who has been his counselor?"
|The Bible in Basic English is in the public domain. (The Bible in Basic English Version Online)
|Scripture quoted by permission. Quotations designated (NIV) are from THE HOLY BIBLE: NEW INTERNATIONAL VERSION®. NIV®. Copyright © 1973, 1978, 1984 by Biblica. All rights reserved worldwide. (New International Version Bible Online)


text:
I have read many of you recommend Silicone Sheets (they need be applied less often correct?) and Or Paper Tape... For the Tummy Tuck scars and Breast Lift scars. I have not gotten mine done yet but would like to have the needed supplies on had for when I do have it done in January of 2012. So with all of the companies telling us their product is best. What do you say?
Which over the Counter Silicone Sheeting and or Paper Tape Do You Recommend for TT and Breast Lift Scars?
Doctor Answers (15)
Scar and Wound Therapy
Numerous scientific studies have demonstrated that taping is just as effective as other methods such as silicone scar gels and sheeting for optimum wound healing and scar control. "My ScaRx®Tape is simple and effective. I have found that these other products are difficult and messy for my patients to use and so become ineffective because of non-compliance," continued Dr. Domanskis.
ScaRx®Tape is hypoallergenic and made with non-toxic adhesive. It is latex free and breathable, maintaining skin integrity. ScaRx®Tape has been shown to last about a week even with bathing. Instructions recommend that patients use ScaRx®Tape continuously for several months to help achieve the best scars possible.
"I have intentionally kept the price of my ScaRx®Tape low compared to other wound therapies in order to make it more affordable and available. I know first-hand how bad scars affect people not only cosmetically, but psychologically," finished Dr.Domanskis.
ScaRx®Tape is available online
Web reference: http://www.scarxtape.com
Postoperative scar treatments
Although many plastic surgeons recommend the use of silicone sheeting there really is no good evidence that it is superior to paper tape. I did a small study of my own patients who had undergone a tummy tuck. I had patients cover one half of their scars with paper tape and the other half with silicone without telling me what they had used on ether side........ I was unable to find any difference between the two sides.
Which ovr the Counter Silicone Sheeting &/or Paper Tape Do You Recommend for TT & Breast Lift Scars?
I have to agree with the others..Many of my patients use Biodermis silicone strips ordered on-line but they can get rashy (a word??) so I advise only half-day use and they are expensive. So for simplicity, I am going more and more now to brown 3M paper tape left on 2 weeks and then changed weekly by the patient, as Dr. Kyllo recommends.
You might also like...
Scar treatment
Of all the factors that influence scar maturation, I believe genetics plays the largest role. However sun avoidance and scar massage may have some value. I am awre that there are a number of opinions on post surgery scar therapy, but I recommend Dr. Blaines. It is relatively inexpensive and easy to use.
Silicone sheet or tape for scar treatment after lift
Post operative scar size and thickness, as well as color, (in the absence of disease) may be affected by:
- Tension on the closure: avoidable in the breast, less controllable in the tummy tuck
- Skin type.
- Motion: stretch along the incision line will affect the scar formation negatively
- Gravity: scars that are under tension due to weight will tend to widen and thicken
Prolonged skin taping (one month at least) followed by scar reduction protocol including Silicone patches can improve your chances of having less visible incisions.
Topical scar treatments have little benefit
Tap or silicone for scar care?
I find that the easiest, cheapest, and most effective treatment for surgical scars is to use paper tape. I apply it in the operating room directly over the closed incision and usually leave it for 2 weeks before changing it. I then instruct patients to change it themselves weekly or so. I recommend wearing the tape for 3 months and find that the scars remain flat and do not become red or raised. This will even work to some degree with older scars that are raised and red. Silicone sheets do work but are more difficult to keep in place and they do not breathe which sometimes will cause a rash. Scar creams do not really work well in my experience. Remember to use only paper tape, not adhesive tape!
Treatment for scars
for30 years I have used paper tape. when all of the new products came out I try them and continue to go back to paper tape. it also costs only pennys
Management of Tummy Tuck and Breast Lift Stars?
Thank you for the question.
I have used paper tape, stare strips, silicone sheeting, and silicone gel creams and haven't noticed significant differences in healing of incision lines. Unfortunately, sometimes despite plastic surgeons best efforts abnormal scarring can occur. Often, patients who are genetically inclined to scar well will do so without any intervention whatsoever.
I would suggest that you follow your plastic surgeons "protocol"; otherwise, you may become confused/frustrated with the variety of opinions you will obtain online.
Best wishes with your procedure.
Web reference: http://www.poustiplasticsurgery.com/Procedures/Procedure_mommyMakeover.htm
Scar treatment: Use what works best for you
The most important consideration concerning the quality of your scars is choosing the right surgeon. A surgeon who is meticulous in their markings before surgery and in their incision closure tend to get the best scar results. It is much better to have all buried sutures so that their are no stitch marks in the skin and no sutures have to be removed after surgery.
After surgery, leave the tapes on your incisions as long as possible. Once they start to come off, use whatever you find easy to apply and doesn't cause irritation to your skin. Forget about vitamin E or other proprietary gels or ointments, the just don't work. Covering your scars for several months with tape or silicone sheeting is best. I generally recommend Nexcare tape because it is cheaper than silicone sheeting, it comes in an easy dispenser and they have four different types to chose from. Use whichever works best for you but be religious about it. If you get thick scars despite your best efforts, see your surgeon who may prescribe a steroid-impregnated tape or perform small steroid injections.
These answers are for educational purposes and should not be relied upon as a substitute for medical advice you may receive from your physician. If you have a medical emergency, please call 911. These answers do not constitute or initiate a patient/doctor relationship.


text:
Is there really no August 2013 thread yet?
I've been watching for an August 2013 code watch thread for a long time - seems like every other month in 2013 is covered, but somehow August got missed! Will I be the only person there in August?
So - who is hoping for the usual late-August free dining? Looks like it was announced in March last year, so we're in for a wait. :hourglass
here in the cloudy,cold u.k. there is currently free dining on offer for august 2013.
we are looking forward to "free food" once more:)
I have also been on a watch. I hope they do offer free dining. That would be great especially since my DD 7 LOVES all the character meals.
I have been on watch. Im looking for mid August FD. I think there was a thread a while ago for August
married2mm how did you get a FD offer for August
We are hoping for a general public FD offer that includes the third week of August 2013 as that week was excluded in this year's offer but was available for our trip in 2011. We are also hoping the family suites are included as well. I am keeping an open mind about all our options now and am also considering booking a condo offsite just in case. So we need some major pixie dust our way pixiedust:
free dining is available on wdw uk site for practically all of next year-
01 Jan - 19 Mar 2013 & 07 Apr - 08 Dec 2013-there is also an added bonus of a
$100 gift card.
the bad news is our flights alone are over $5000 :hyper:
married2mm :)
When we were there last month, I was bummed that we couldn't take advantage of the FD BB offer for Aug. 2013 b/c it was starting too late for us - we're looking to go the 2nd week in August. I'm now hoping the "Pin Gods" bless us one more time this year with a discount for next August (we've been fortunate to get pin codes the last 3-4 years in a row). If not, then I'll hope for a R/O discount - If we get nothing, then there'll be no trip next year :sad:
:goodvibes There's plenty of us going next August (see the Happy Dance Thread-look for August 2013) Theres some of us leftovers from this past August that are going again. Some of us got BB offers for free dining for next August. Sadly, not me-because Im a dork and wasnt paying attention!:crazy2: Sooooo, Im patiently awaiting another code. Would REALLY like FD this time:wizard: so hoping for some pixie dust!
We are planning to be there next August. I am really hoping the FD bouncebook is still available when we are there next month.:)
Subscribing. Booked FD BB but now waiting for any RO offers to see if I can get a better deal!
We are looking at August 2013. Really would have loved free dining but I am not sold on the stay play dine thing. I guess we will have a long wait to see what (if anything) is offered for next Aug.
I had to dig to find the August 2013 thread! Glad I found it :)
I have been reading posts all summer and have learned so much! Thanks! I need some advice...Planning first family trip for August 2013. What week would be better to book. I would like to reserve August 18th as that would give me a week to adjust before school starts, but I'm wondering if deals would come out the following week of the 25th. Plane tickets are pretty cheap right now... When should we book...any advice is welcomed! Thanks! :)
BTW - where are you finding cheap flights? Every airline I have looked at recently doesn't even have schedules open that far ahead yet?
|All times are GMT -5. The time now is 08:15 AM.
Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd.
Copyright © 1997-2014, Werner Technologies, LLC. All Rights Reserved.


text:
You will reside in one of our generous Deluxe suites. We will bid you welcome with fresh strawberries, pralines and a bottle of champagne. Enjoy a romantic candle light dinner in the evening (5-course-menu) in our restaurant BALTHZAR. Our room service breakfast will set you up for the day ahead in the morning. Our exclusive spa area with a pool, sauna and gym may be used free of charge.
The deal – at a glance:
- 2 nights in a Deluxe suite for 2 people
- Fresh strawberries and pralines
- Bottle of champagne
- A candle light dinner (1 glas of champagne per person included)
- Roomservice breakfast
- Use of our exclusive spa area
- Contact us if you wish to book extra nights
€ 449,00 for 2 person


text:
(Blog reader/commenter Spencer wins a copy of my book Abide: Practicing Kingdom Rhythms in a Consumer Culture for his winning idea for this contest to give away a copy of my book Your Jesus is Too Safe.)
How to enter:
Take a picture of a place or area where Jesus is portrayed as "safe" or not like Christ at all. Show me your found safe Jesuses.
You can either submit your photo by posting at your blog or Twitpic or Flickr or what-have-you and providing a link in the comments,
You can submit your photo by emailing it to me at the address you see in the upper right sidebar profile.
Rules, etc.
Don't pass off photos you find online as yours. You must take the pic yourself. C'mon, that's not that hard.
Yes, you could probably successfully cheat by passing off a found photo online as your own, but don't do that.
If you're related to me, you can't play. Sorry.
Contest will end in roughly a week, or whenever I remember to end it.


text:
This product actually works for my incredibly delicate and fussy skin. I'm very surprised. I say this because every time I come across a body wash that claims it's for 'sensitive skin' I end up with an all over rash… sensitive skin my behind!!
I have very dry/itchy skin during the winter months, it's so dry it feels like it's on fire. So I need something very soothing and non-irritating. This product definitely does the trick. It contains no colors/dyes or fragrance. It moisturizes, soothes itchy skin and is delicate enough for a baby's bottom. But the most important quality (for me, at least) is that is doesn't leave me with red blotchy spots, as if I've had a hive outbreak. Which has happened many times with other body washes, not hives, but the red blotchy spots.
I can keep raving about this product, but I think you guys get the idea – it's awesome!
It comes in a 10 fl. oz. plastic bottle and retails for around $9.00. That might vary from store to store.
Ingredients: Water, Sodium Trideceth Sulfate, Caprylic/Capric Triglyceride, Glycerin, Sodium Lauroamphoacetate, Sodium Chloride, Avena Sativa (Oat) Kernel Flour, Laureth-2, Cyamopsis Tetragonoloba (Guar) Gum, Ceramide 3, Avena Sativa (Oat) Kernel Extract, Sodium Benzoate, Guar Hydroxypropyltrimonium Chloride, Panthenol, May Also Contain: Citric Acid.


text:
You must log in to access this feature. Sign in with Twellow or Facebook to get started.
By signing in to Twellow, you indicate your agreement to our terms of service.
Simply connect with Facebook and kiss those password blues away,
or go here to reset your password.
Wife. Mommy. Christian. Proud American. Baptist. Conservative. Homeschooler. God fearing. Redhead. Multi-Tasker. Health nut. Coffee drinker. Book lover. #tcot ★


text:
Browse by Topic
Sign In
More than 40,000 members value HFMA's thought leadership and practical strategies. HFMA is where you need to be.
Get acquainted with the
healthcare finance industry's leading professional association. Find out why our
members rely on HFMA as their go-to source for insight and
Members have many
options for helping them advance their careers. Conferences, seminars,
eLearning, certification, and more -- our education and events will keep you
Real-time presentations with nationally recognized experts, networking opportunities, and industry solutions—no travel required!
This Jan. 22 webinar shares how a care management strategy empowers physicians to work smarter using population analysis, risk stratification, and proactive care management workflow.
Get the latest, practical education in key areas of healthcare finance over 1, 2, or 3 days. Choose Essentials Programs or Master Sessions in Chicago, DC, or Seattle. Register early and save $100.
If you're a subscriber to any of our three newsletters, you have access to online education that awards CPEs. Learn more or subscribe.
Get the perspectives of leading healthcare finance professionals on today's hottest issues.
Information about leading vendors helps your buying decisions.
Forum members can network during live webinars or access a library of past webinars on topics such as bundled payment, charity care, and ICD-10.
An ever-expanding collection of spreadsheets, policies, job
descriptions, checklists, and more that you can adopt and adapt.
Forum members can submit vexing questions to a panel of experts
using our Ask the Expert service.
Your source for employment solutions.
Find new employment opportunities or
reach out to qualified candidates.
Distinguish yourself as a
leader among your peers and advance your career by earning certification in our
healthcare finance programs.
Get an objective third-party evaluation of products and services used in the healthcare finance workplace.
MAP App is a web-based application that helps organizations improve revenue cycle performance based on industry-standard metrics called MAP Keys.
Find suppliers and products in this comprehensive vendor directory for healthcare finance professionals.
Improve your revenue cycle performance through standard metrics, peer comparison, and successful practices.
Guidance for understanding and communicating about the price of health care.
Guidelines on how to make it easier for consumers to get information about healthcare prices.
David Greenwalt
Although this statement is true, most of us are risk averse. Granted, we chose a business fraught with risk. Risks the healthcare industry faces today are readily apparent: an aging population that will require extensive capital investment, payment that does not provide the margins necessary to generate that capital, and a regulatory environment that limits organizations' abilities to manage around these issues. These ever-present concerns may explain why many organizations tend to overlook another key risk-the loss of a critical information system.
With capital at a premium and most in the industry already committing their strategic dollars to facility use, sudden need for system replacement poses a significant business threat for many healthcare organizations. Organizations that aren't planning for a system replacement in the near term may find the decision is not within their control.
Significant consolidation of IT vendors over the past five years has left many legacy applications neglected or soon-to-be superseded. In particular, many organizations are finding that their niche or departmental systems are being integrated into advanced clinical systems. In these situations, the organization typically must either pursue a different niche vendor (which is also vulnerable to acquisition!) or proceed with implementing the advanced clinical system before the organization is ready to do so.
Even providers that depend on large, seemingly stable vendors may find themselves facing unanticipated system replacement. Consider the scenario of a little fish that is swallowed by a bigger fish, which is then devoured by a shark. Recently, a large enterprise resource planning developer acquired a smaller competitor that used a completely different technology platform. Shortly thereafter, the acquiring vendor was itself acquired. The shark in this tale was a large, multiproduct vendor whose principal business was more technology related than pure ERP. And neither of the smaller players was exclusively based on its solutions. The result? There will likely be pressure to convert the acquired client base to the larger firm's platforms. For healthcare providers not currently using those platforms, this migration could be considerably disruptive.
In clinical computing space, several vendors have acquired other vendors during the past five years and have developed or are developing replacement systems for the "old" applications. These vendors typically announced a strategy to supersede the acquired applications and transition the existing customers to the new solution.
In some cases, existing client bases that are not pleased with plans to change systems can convince the vendor to reconsider. Still, IT vendors manage to a bottom line as we all do. These vendors need to recover the development dollars sunk into replacement products and cannot afford to maintain disparate systems in similar market space. This economic reality means that healthcare organizations may eventually need to face an unexpected system replacement.
The best way to mitigate the risk of system replacement is to understand the incidence, prevalence, and probability of the issue at hand.
Develop a long-term strategic plan for IT. Every healthcare organization should have a plan for IT spanning the next five to 10 years. This strategic plan should clearly support the clinical and business goals of your organization and help proactively determine when and why you should replace or add new technology, such as advanced clinical computing. The process of developing this plan will in itself help identify an organization's vulnerabilities and prioritize capital expenditures. The following are basic steps in developing the strategic plan:
Talk to your vendor. Acquiring a customer is very expensive for a healthcare IT vendor. As such, these vendors want very much to retain their clients. Providers can sometimes use this leverage during conversations with vendors to get them to address product plans. The following steps can help if you're concerned about an unwelcome system replacement.
Ask an expert. IT has many experts whose sole business is to track the plans and success of vendors. Additionally, most IT consulting firms track industry, vendor, and product trends, even though they do not provide that knowledge as a standard service. You may find that the "inside" advice of a trusted adviser is more valuable to you than the more formal knowledge of other firms.
In the end, there is no perfect protection from any risk. We live in an imperfect place and work in a volatile environment. System replacement is inevitable in the ever-evolving quest to improve care delivery and make best use of new technologies. Still, proactive investigation and planning are your best tools against unwelcome surprises. The better your organization is able to anticipate and plan for system changes, the more smoothly these transitions can occur. None of us likes risk without the possibility of an associated reward.
David Greenwalt is a principal consultant, advisory services, Healthlink Incorporated, Houston. Questions or comments about this article may be sent to him at firstname.lastname@example.com.
Publication Date: Wednesday, June 01, 2005
If you are an existing member, please log in below. Username and password are required.
Forgot User Name?
Forgot Password?
If you are not an HFMA member and would like to access portions of our content for 30 days, please fill out the following.
First Name:
Last Name:
Scott Schmidt, vice president, Cerner RevWorks, LLC, shares insights on best practices for maximizing a revenue cycle management partnership.
Amy Amick, president, revenue cycle management, and William Davis, vice president, revenue cycle advisory solutions, both with MedAssets, share insights on the industry and techniques to drive sustainable performance improvement.
Eric Ward, president and CEO, Parallon Revenue Cycle Services, discusses key trends in revenue cycle management and factors providers should consider when partnering to advance their revenue cycle performance.
Dale Hockel, senior vice president of operations, and Jim Fanelli, CFO, TriMedx, share strategies for elevating clinical engineering through innovative management programs.
Rick Heise, senior vice president, revenue cycle, at Cerner Corporation, discusses the importance of integrating clinical and financial data to excel in health care's changing payment environment.
HFMA's print, email, online, and mobile opportunities provide you maximum reach and impact. We will work with you to build a plan that meets your needs. Contact a sales rep.
HFMA offers online, email, and print opportunities to help you recruit the most talented healthcare finance professionals. Place your classified ads today.
Drive down costs while improving quality in a reform environment.
Stay informed about new directions in healthcare finance. Share tools and strategies for improving performance. Be an active participant in your profession. Together, we'll reshape the business and practice of healthcare. Join us.
©2014 Copyright Healthcare Financial Management Association
HFMA.org is best viewed using IE9 or the latest versions of Chrome, Firefox, and Safari.
Join HFMA today and enjoy: