Vodafone warns inflation and tough economy could hold back earnings this year

The company reported a 5% rise in adjusted core earnings to €15.2bn for the year to the end of March that was at the bottom of its guidance range

Vodafone chief executive Nick Read said he was focused on improving its performance in Germany and pursing opportunities for Vantage Towers, the infrastructure business spun out last year. Picture: Larry Cummins

Rising inflation and a   tough economic backdrop will hold back Vodafone's earnings this year and could complicate its deal-making efforts, the mobile phone group has warned. 

The company, which has a new Middle Eastern shareholder, said it expected adjusted core earnings of €15bn to €15.5bn this financial year, below analysts' average forecast of €15.57bn.