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Vodafone books $40.9 billion loss
 Vodafone CEO Arun Sarin is laying out the company's strategy for the next few years. YOUR E-MAIL ALERTS(CNN) -- UK mobile phone giant Vodafone announced Tuesday a record net loss of £21.82 billion ($40.9 billion) after asset writedowns. Its preliminary results for the year to March 31 included a strategy update for the world's largest mobile operator that involves job cuts. Vodafone also unveiled plans to return a total of £9 billion ($16.7 billion) to shareholders in 2007. CEO Arun Sarin said Vodafone's new dividend policy would target a payout of 60 percent of adjusted earnings per share. Vodafone, which has a market value of about $134 billion, announced in February a writedown in goodwill of between £23 billion ($43 billion) and £28 billion ($52.3 billion), largely for its operations in Germany, where it bought Mannesmann in 2000. It said in February that the Mannesmann deal -- a hostile takeover valued at $183 billion -- "occurred at a time when share prices in the telecommunications sector were significantly higher than today." While the £23.5 billion ($44 billion) in "impairment charges" for Vodafone stem largely from the goodwill writedown in Germany, its operations in Italy also contributed. The company said Tuesday it would cut 400 jobs in its corporate office. It posted adjusted basis earnings per share of 10.11 pence (18. 9 cents) for the year to end-March 2006, up 13 percent on a year-earlier. The average forecast in a Reuters poll of analysts was 9.95p (18.6 cents). Group revenue from continuing operations was £29.4 billion ($55.1 billion), with organic growth of 7.5 percent. Mobile telecommunications revenue grew 6.7 percent to £28.1 billion ($52.7 billion). Most interest is on Vodafone's turnaround strategy under chief executive Arun Sarin. Broadband interestVodafone was expected to set out plans to cut costs through asset sales and job cuts, and move beyond mobile coverage into business areas that include a fixed-line broadband operation. Vodafone has 60,000 workers around the globe. Arun was expected to announce extensive cost trimming, including job losses, as the company prepares to outsource some of its back-office operations. Part of Vodafone's strategy for the years ahead could be the disposal of its U.S. joint venture Verizon Wireless, in which it holds a 45 percent stake worth between $45 billion and $60 billion. Its partner, Verizon Communications, has been keen to buy Vodafone out. In March, Vodafone sold its Japanese phone business to Internet investor Softbank for about $15.5 billion. Vodafone's mobile business in Europe is subject to intense competition and falling margins. But just last week, Vodafone completed the acquisition of Telsim, Turkey's second-biggest mobile operator, for which it successfully bid $4.55 billion in December. Telsim has about 11 million subscribers. Vodafone shares closed Monday at 119.75 pence. The stock has lagged its European sector peers by around 10 percent in the past year, according to Reuters. The company will get a new chairman in July. John Bond, chairman of HSBC, is stepping down after 45 years at Europe's biggest bank to head the Vodafone board. 
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