Vodafone revenues top forecasts

Vodafone Group the world's largest mobile phone company by revenue, topped market forecasts with robust third-quarter revenues yesterday on the back of strong emerging markets and mobile data growth.

Vodafone said revenues rose to £9.2 billion, with organic growth of 4.4 per cent, compared to expectations of 3.5-4 per cent growth - broadly stable compared with the last quarter.

In Vodafone's fast-growing EMAPA regions - eastern Europe, the Middle East and Africa, Asia Pacific and affiliates - organic revenue growth surged to 13.7 per cent.

Mobile data revenue that was 41.5 per cent higher supported more pedestrian growth of two per cent in mature European markets.

Vodafone, whose global customer base now stands at around 252.3 million, said acquisitions in India and Turkey helped propel group revenue growth to 15.8 per cent and EMAPA service revenue growth to just over 48 per cent.

The company, which raised full-year forecasts when reporting half-year results last November, reiterated its current year outlook but noted that revenues might benefit from exchange rate movements.

"There have been significant recent movements in exchange rates, notably a strengthening of the euro," the company said in its trading statement. "Should these persist, this would have a favourable impact on the group's financial performance, particularly with respect to revenue...".

Vodafone, which is targeting full-year adjusted operating profit of £9.5 billion to £9.9 billion on revenues of between £34.5 billion and £35.1 billion, had based its outlook on one pound being worth €1.45 or $2.04, analysts say.

But the pound has fallen by roughly seven per cent against the euro and by around four per cent against the dollar since last November.

With more than 50 per cent of operating profits generated in euros and around 25 per cent in dollars, some analysts had expected the company to upgrade forecasts.