LONDON—Vodafone Group PLC on Friday hailed the continued recovery of its key European telecommunication markets, even as its revenue fell.

The world's second-largest mobile operator by subscribers after China Mobile Ltd. said revenue for the three months ended June 30 fell 0.9% year-over-year to £ 10.1 billion ($15.7 billion), but rose 3.3% excluding currency movements and mergers and acquisitions.

Its first quarter revenue excluding handset sales, currency movements and mergers or acquisitions—a key metric—rose 0.8%. This compares with a 0.1% gain in the previous quarter of the last fiscal year, when it posted its first growth for 11 quarters.

On the same basis, Europe revenue dipped 1.5% but Africa, Middle East and Asia Pacific revenue, including India—a key Vodafone market—rose 6.1%, as the operator shifts resources to faster-growing economies.

The company didn't disclose profit figures.

"We have made a good start to the year. Our emerging markets have maintained their strong momentum and more of our European businesses are returning to growth," Chief Executive Vittorio Colao said.

Newbury, England-based Vodafone's results have been stung in recent years by its high exposure to Europe's anemic wireless markets; a region where it generates most of its sales.

It is spending billions of dollars to improve network quality and speed across the world and in Europe it thinks the investment is central to a turnaround of its fortunes in the region.

Vodafone has also focused on deal-making across Europe's scattered telecom and media sectors as operators pursue fixed-line assets and exclusive content to shore up stagnating wireless businesses.

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