Vodafone said much of its growth has been reduced to growth in Europe and Africa
Vodafone (LON:VOD) said sales increased in the last quarter as consumers and business operations saw improvements.
Telecommunications companies are not yet at the pre-Covid level, but in the first quarter it reached 11.1 billion euros.
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Due to an update by the company, Vodafone’s share price will rise by 2.2% during Friday morning sessions.
Revenue from the services that Vodafone earns a large portion of its money rose 3.1% to 93.9 billion euros. The company said this depends on the growth of Europe and Africa.
Revenue from mobile phones recovered from Covid-related disruptions increased by 5.7%.
Russ Mold, AJ Bell’s investment director, provided the context for Vodafone’s results announcement.
“The full year of Vodafone in May actually stinks. It lacked profits and gave investors an ignorant message that they needed to increase spending on their networks, and already shot in 2019. We put the dividend back to the line, which had been potentially severe cuts. The growth target also felt that the market was clearly not inspired,” Mold said.
“The stench has been on inventory since then, but Vodafone’s first quarter trading statement works as a bit cleaner as it reports revenue growth across the consumer and business segment.”
Nick Read, Vodafone CEO, commented: This growth is broadly based within both consumer and business segments, with a large portion of the market contributing. This is the result of commercial and operational momentum built over the past three years as part of strategic change.”
“In Europe, our sales and retail environments have not yet returned to normal conditions, but we offer excellent service revenue performance. Our business segment includes digital services such as IoT, security and cloud. We are building more pipelines, while still achieving stronger growth from public sector and corporate customers.”
“In May, we first announced our medium-term growth ambitions. We are in line with this ambition, and to provide guidance for the year, and to accelerate the delivery of shareholder value. We are focusing on optimizing the product.
