UK telephone major Vodafone today said its group revenue grew 3.5 per cent to £11.7 billion in the quarter ended June, 2011, primarily helped by growth in emerging markets like India.
The company has received, “Strong service revenue growth in India (16.8 per cent), Turkey (32.1 per cent) and its South African unit Vodacom (7.8 per cent).”
“Revenue from our key focus areas of data, enterprise and emerging markets continues to grow strongly,” the Vodafone Chief Executive, Mr Vittorio Colao, said.
At the end of the April-June period, the company had free cash flow of £1.2 billion.
“With our broad geographical mix and improving market positions, we are well placed for the rest of the financial year,” Mr Colao added.
However, the company said that conditions in southern Europe remain challenging, including Italy and Spain, due to price reductions.
“Macroeconomic challenges continue to dominate the performance of our businesses in southern Europe,” the company said.
Net debt reduced to £23.1 billion following the receipt of £6.8 billion in proceeds from the disposal of SFR and the company has started a £4-billion share buyback, under which it has till now been able to complete 10 per cent.
“Businesses in our major markets continued to grow strongly, with India continuing to see a more stable pricing environment and Vodacom continuing to lead the South African market in mobile data,” Mr Colao added.
Following the quarter end, the company announced the acquisition of a 33 per cent Essar stake in Vodafone Essar Ltd. Total cash outflow in respect of this transaction will be $5.46 billion (£3.4 billion).
The company said: “Trading in the first quarter was consistent with management’s expectations, with a resilient performance in northern Europe and good momentum in our emerging markets. The group therefore confirms its guidance for the current financial year.”