Vodafone sees improved revenues trend

Vodafone sees improved revenues trend

Turnaround hopes at Vodafone’s under-pressure European division were lifted today after signs of improved sales trends in the UK and Germany.

While service revenues were down 3.2% in the quarter to December 31, this represented an improvement on the previous quarter after the combination of new handsets and promotional offers ignited customer interest. In the UK, revenues were down by 4.9%, against the 5.7% decline reported in November.

Data revenues across the group exceeded £1bn (€1.14bn) for the first time in the quarter, helped by increased take-up of data-enabled smartphones in Europe. Today’s figures do not include the impact of Apple’s iPhone, which Vodafone started selling in the UK in mid-January.

Chief executive Vittorio Colao has been under pressure from shareholders to show he has the right strategy in place to improve fortunes in Europe, while maintaining the company’s growth rate in emerging markets.

Some shareholders are understood to be pressing for a break-up of the company if the European division cannot be revived.

Shares have lagged Vodafone’s rivals in recent months, but the trend reversed today after the stock jumped 5% in the FTSE 100 Index.

Investors were also cheered by improved results guidance, with operating profits now expected to be in the range of £11.4bn (€13bn) and £11.8bn (€13.5bn) in the year to March, up from £11bn (€12.5bn) to £11.8bn previously forecast.

This reflected a £1bn cost-cutting programme undertaken by the group in the last year.

Mr Colao, who took the helm in July 2008, said: “We are on track to deliver on our strategic priorities in the current financial year.”

More in this Section

Clothes retailer Boohoo shares slide again by 14% on factory pay probeClothes retailer Boohoo shares slide again by 14% on factory pay probe

Varadkar eyes business tax cuts in job stimulus plan Varadkar eyes business tax cuts in job stimulus plan

UK's €33bn stimulus includes Vat cut to 5% for restaurants and new 'eat-out' voucherUK's €33bn stimulus includes Vat cut to 5% for restaurants and new 'eat-out' voucher

Leisure sector fears future job losses in Ireland without government supportLeisure sector fears future job losses in Ireland without government support


Lifestyle

Dónal Clancy is a musician from An Rinn in Co Waterford. He will perform the music of his late father, Liam Clancy, in a special online solo performance on Thursday at 7pm as part of this year's Clonmel Junction Festival.Question of Taste: Dónal Clancy

BETWEEN 1973 and early 1975, John Lennon split with Yoko Ono, took up with his assistant May Pang and embarked on a period of intense creativity and outrageous behaviour. Lennon later described this time as his “lost weekend”.Rufus Wainwright has returned a new man

Stan O’Sullivan tells Ellie O’Byrne about the genre-busting album from 2007 that probably doesn’t get the recognition it deservesB-Side the Leeside - Cork’s Greatest Records: Louder & Clearer from Stanley Super 800

In recent times one of the most recurring and troubling conversations I have with teenagers, in therapy, is around their use of marijuana. Often parents seek out therapy because they have noticed a dramatic shift in their child’s behaviour.Richard Hogan: Beware of making light of your teen's marijuana use

More From The Irish Examiner