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Vodafone sales dip, waits for fixed broadband to kick in

Blighty holds up, Germany drops 12 per cent to £1.7bn

Sales at Vodafone dropped marginally to £10.1bn, revealed the global mobile operator's second quarter results.

UK sales remained broadly the same at £1.4bn. Blighty is its second largest market after Germany, which recorded a drop in sales of 12 per cent to £1.7bn.

Revenue for the company’s first six months of trading rose by nine per cent in its adjusted income statement, to £21.5bn, while adjusted profit before tax plunged by 45 per cent to £1.1bn.

This was also the quarter that Voda re-launched itself back into Blighty's fixed-line broadband market.

The company currently has just 70,000 subscribers in the UK, compared with an overall base of 10 million across the rest of the group.

Vittorio Colao, group chief exec said: "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, as customer demand for 4G and data takes off."

The company said the quarter results reflected "more stable pricing environments in Europe."

Philip Carse, analyst at Megabuyte, said: "As Vodafone noted, this was a 'good' start to the year, with improving revenue growth trends, particularly in its core European market, aided by 4G."

He added: "Away from the results, there was no update on Vodafone’s asset swap discussions with Liberty Global, that could see the merger of the companies’ respective operations in at least Germany and the UK."

The company is expected to post full-year revenues of £41.2bn, down 2.3 per cent on the previous year. ®

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