London,May 28: Vodafone Group Plc, the world's largest mobile phone company by revenue, beat expectations with a 26 per cent rise in annual core earnings on Tuesday as Chief Executive Chris Gent prepared to bow out. The strong underlying performance -- the final testament to one of the most respected CEOs in the industry -- was helped in part by currency effects. Vodafone generates half its earnings in the euro zone, but reports results in pounds, and the euro has surged in value over the past year.

But the group's shares fell 3.6 per cent to 121 pence by mid afternoon. Analysts put the fall down to scant company guidance for the new year and profit-taking. Vodafone's shares touched a fresh year high of 128.5 pence in early trade.
"There were very few negatives in the analyst meeting, and the results were strong across the board," said Mark James, telecoms analyst at Nomura.
"They aren't giving much of an outlook. But we have this limbo land between Chris Gent's departure and (successor) Arun Sarin's arrival. In the intervening period, they are reluctant to give much guidance...as Sarin may have different views."
Proportionate earnings before interest, tax, depreciation and amortisation, which include contributions from subsidiaries that are not fully owned, rose to 12.68 billion pounds in the year to March 31, at the top end of forecasts. Proportionate revenue climbed 14 per cent to 33.9 billion pounds. Bureau Report