Vodafone reported a solid set of financials for its most recent quarter, reporting a 9.3 percent annual rise in group revenue, driven by growth in its emerging markets. In an interim statement this morning, which did not include subscriber data, the UK-based group said total revenues rose to £10,743 million for its fiscal first-quarter ended 30 June. Service revenues at its European unit rose 4.4 percent to £7,064 million, Africa and Central Europe rose 26.3 percent to £1,573 million and Asia-Pacific and Middle East rose 21.8 percent to £1,491 million. However, on an organic basis, group revenues declined 2.4 percent. “In the first quarter the service revenue trend in Europe was consistent with the previous quarter and we continued to see good growth in India and South Africa,” said Vodafone CEO Vittorio Colao in a statement. “Our total communications strategy is delivering well, with organic data revenue up 19 percent and organic fixed line revenue 7 percent ahead of the comparative period.” India was a star performer reporting a 23 percent rise in service revenue to £755 million and a 56 percent rise in customers, reflecting the launch of services in seven new circles in the country in the previous financial year.
The group maintained its outlook issued in May 2009 for the current financial year. Reuters notes that Vodafone has guided for adjusted operating profit of between £11 billion to £11.8 billion for its fiscal year to end-March 2010, after making £11.8 billion in its last fiscal year. “We are very comfortable still with our guidance range. Nothing surprised us in the first-quarter numbers,” Chief Financial Officer Andy Halford told journalists on a call. Vodafone added that it will update on its cost reduction programme in November. The firm is targeting a £1 billion reduction in operating costs by the end of the 2011 financial year.
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