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Vodafone beats analyst estimates, raises full year operating profits to £ 11.8 billion

Vodafone has raised its profit forecast from £ 11.4 billion to 11.8 billion pounds. During second quarter the organic service revenue grew by 1.3 percent. Data revenue rose by  23.8% , with smartphone penetration in Europe rising to 21.7% in Q2; 24% of consumer contract customers in Europe are on integrated voice, SMS and data tariffs.

Enterprise revenue also grew by 2.6% driven by new account wins, growth in demand for converged services and increasing penetration of existing clients. In emerging markets, India service revenue rose by 18.4%, Turkey by 27.9% and Vodacom 7.3%. 

Vittorio Colao, Group Chief Executive, said, “A year on from announcing our updated strategy, we are making clear progress. We are gaining share in most of our major markets, through our focus on superior network quality and an improved customer experience. In addition, we are achieving sustained growth in the key areas of data, emerging markets and enterprise.”

“At the same time, we have delivered on our commitment to crystallise value from our non-controlled assets through a successful programme of disposals and the announcement of a dividend from VerizonWireless, with the majority of proceeds pledged to shareholder returns.

“Although we remain mindful of the uncertain economic outlook, we are confident that we have the right strategy and capabilities to continue to perform consistently through top line growth, cost efficiency, investment and cash generation.”

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