Vodafone’s stock (LON:VOD) surged in opening Monday after the group explained its “resilient” financial performance in the first half of the year.
Group revenue fell 2.3% to 21.4 billion euros amid low revenue from roaming, visitors and mobile phone sales.
The mobile company says it has “enhancing confidence” behind the six-month results with its full-year outlook.
Vodafone has increased its guidance for the fiscal year 2021 from 14.4 billion euros to 14.6 billion euros. This is up from last year’s guidance of 14.5 billion euros.
The group deepened customer engagement, with mobile contract customer loyalty improving over the eighth quarter year over year, launching 5G in 127 cities.
In a statement, Nick Read CEO said: We report resilient first half performances and continue to see commercial momentum across the group. The results show that success of previous strategic priorities – increasing customer loyalty, increasing fixed broadband base, and stimulating digitalization – simplifying businesses, gaining significant cost savings and efficiently delivering 5G through network sharing.
“Through COVID-19 and substantial cuts in international travel, roaming revenues are currently blurring fundamental commercial progress, with service revenues rising 1.5% for the second quarter, excluding roaming. We are currently spending two years on a long-term strategy to turn Vodafone into a business that enables a digital society and generates both sustainable growth and attractive returns. We are running at Pace, but there is still more to do to achieve our goals.
“Now, more than ever, the connectivity services we provide are important to society and there is a growing demand for our services. We are proud that our dedicated employees have been caught up in fatigue 24 hours a day to keep everyone connected,” he added.
Vodafone Stock (LON: VOD) is trading +3.82% at 124,08 (0948GMT).
