Vodafone revenues worsen in Q3

Trading at Vodafone worsened in the third quarter as customers in previously robust northern Europe joined those in the south by cutting phone usage, adding impetus to the British group’s efforts to cut costs.

A worse-than-expected 2.6% drop in organic service revenue in the three months to Dec 31 marked an acceleration from the 1.4% fall recorded in the second quarter and showed the intense pressure on the world’s second largest mobile operator.

Telecoms firms across Europe are struggling with the macroeconomic pressures at a time when they need to build networks that offer faster speeds for consumers increasingly accessing the internet on mobile devices. They are also facing regulatory changes across the region and fierce competition.