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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