Table:
| Taxation |  |  |
| --- | --- | --- |
|  | 2019 €m | 2018 €m |
| Income tax (expense)/credit: | (1,496) | 879 |
| Tax on adjustments to derive adjusted profit before tax | (206) | (188) |
| Deferred tax following revaluation of investments in Luxembourg | (488) | (330) |
| Luxembourg deferred tax asset recognised | – | (1,603) |
| Deferred tax on use of Luxembourg losses in the year | 320 | 304 |
| Tax on the Safaricom transaction | – | 110 |
| Derecognition of a deferred tax asset in Spain | 1,166 | – |
| Adjusted income tax expense for calculating adjusted tax rate1 | (704) | (828) |
| Loss)/profit before tax | (2,613) | 3,878 |
| Adjustments to derive adjusted profit before tax (see earnings per share) | 5,149 | 530 |
| Adjusted profit before tax1 | 2,536 | 4,408 |
| Share of adjusted results in associates and joint ventures | 348 | (389) |
| Adjusted profit before tax for calculating adjusted effective tax rate | 2,884 | 4,019 |
| Adjusted effective tax rate1 | 24.4% | 20.6% |
Paragraphs:
Note: 1 See “Alternative performance measures” on page 231 for further details and reconciliations to the respective closest equivalent GAAP measure.
The Group’s adjusted effective tax rate for its controlled businesses for the year ended 31 March 2019 was 24.4% compared to 20.6% for the last financial year. The higher rate in the current year is primarily due to a change in the mix of the Group’s profit, driven by the financing for the Liberty Global transaction. The tax rate in the prior year also reflected the consequences of closing tax audits in Germany and Romania. We expect the Group’s adjusted effective tax rate to remain in the low-mid twenties range for the medium term.
The Group’s adjusted effective tax rate for both years does not include the following items: the derecognition of a deferred tax asset in Spain of €1,166 million (2018: €nil); deferred tax on the use of Luxembourg losses of €320 million (2018: €304 million); an increase in the deferred tax asset of €488 million (2018: €330 million) arising from a revaluation of investments based upon the local GAAP financial statements and tax returns.
The Group’s adjusted effective tax rate for the year ended 31 March 2018 does not include the recognition of a deferred tax asset of €1,603 million due to higher interest rates; and a tax charge in respect of capital gains on the transfer of share in Vodafone Kenya Limited to the Vodacom Group of €110 million.
Question:
What is the average adjusted profit before tax?
Answer: (2536+4408)/2 = 3472