The firm’s shares fell four per cent to yearly lows, with the group’s performance missing forecasts.
The fall came despite the firm announcing a share buyback programme using money from its US joint venture Verizon Wireless, which said on Monday night it would pay Vodafone $3.8bn (£2.4bn) in dividends this year.
Vodafone wrote off £5.9bn from its Spanish and Italian businesses yesterday as it said service revenues from its southern European businesses had declined by 10 per cent.
The company posted a £1.9bn loss in the half-year period, after a £6.6bn profit in the same period last year. Total revenue declined by 7.4 per cent to £21.8bn.
“In the short-term, our results reflect tougher market conditions,” the company’s chief executive Vittorio Colao said, although he also said he was “positive about the longer-term opportunities”.
The UK business turnover fell 3.2 per cent, although it migrated more people onto lucrative pay-monthly smartphone contracts.