This ad will auto close in 10 seconds

Vodafone Q1 revenues climb 9%

Last Updated: Friday, July 24, 2009 - 21:25

London: British telecom major Vodafone
today reported a nine per cent rise in revenue at 10.74
billion pounds in the first quarter ended June 2009, primarily
helped by good performance in some markets, including India.

The company`s revenue increased by 9.3 per cent to 10.74
billion pounds in the first quarter ended June 30, 2009, it
said in a statement.

According to the company, the positive impact of exchange
rate movements and benefit from merger and acquisition
activity, primarily attributable to the additional stake in
South Africa`s Vodacom, helped in recording higher revenues.

"Group organic service revenue declined by 2.1 per cent
due to weakness across most of Europe and Central Europe
resulting from recessionary factors although good growth
continued in India, South Africa and Italy," Vodafone said.

In Asia-Pacific and Middle East regions, revenue shot up
by 21.8 per cent.

Besides, Vodafone witnessed a strong growth of 23 per
cent in service revenue from India.

"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," Vodafone Chief
Executive Vittorio Colao said.

"Our total communications strategy is delivering well,
with organic data revenue up 19 per cent and organic fixed
line revenue seven per cent ahead of the comparative period.
Free cash flow generation was strong at 1.9 billion pounds,
up 21 per cent," Colao said.

In India, service revenue grew by 23 per cent backed by
the revenue stream generated by the network sharing joint
venture -- Indus Towers.

The average customer base increased by 56 per cent in
India reflecting the launch of services in seven new circles
in the previous financial year.

During the quarter, Vodafone net debt decreased to 31.2
billion pounds at June 30, 2009.

About its guidance, Vodafone said it is trading in line
with its outlook issued in May 2009 for the current financial

"In a challenging economic environment free cash flow
generation has been strong, enabling continued investment in
the Group`s growth areas including mobile data, fixed
broadband and India," the company said.

Bureau Report

First Published: Friday, July 24, 2009 - 21:25

More from zeenews

comments powered by Disqus