Weak Europe rocks Vodafone
Weak European markets hit Vodafone in the fourth quarter as organic service revenue sank 2.6 per cent.
The worse-than-expected drop in the three months to December compares to the 1.4 per cent fall recorded in the second fall, the first drop since 2010.
The telecoms provider was hit by customers making fewer calls in Italy and Spain – revenue fell 13.8 per cent and 11.3 per cent respectively – as well as slowdowns in other Southern European markets.
The group continued to grow in emerging markets, with Indian revenue up nine per cent and Turkey up 18.4 per cent over the period.
“Our results continue to reflect very difficult market conditions in Europe. We are addressing this through firm actions on cost efficiency, and continuing to invest in areas of growth potential,” said chief executive Vittorio Colao.