Investing.com - Vodafone Group reported better-than-expected fiscal third quarter revenue on Thursday, sending its shares 1.5% higher in London.
Vodafone said fiscal third quarter revenue dropped 3.6% to GBP10.98 billion, but topped consensus of GBP10.86 billion. The decline reflected tough business conditions in Europe, its key market.
Organic group service revenue decline 4.8% in the three months ended December 31. That compares with a 2.6% decline in the same period last year. Group service revenue makes up the bulk of the U.K.-based mobile giant's top line.
On the same basis, revenue in Europe fell 9.6% in the quarter. In Africa, Middle East & Asia Pacific, the figure rose 5.5%.
Chief Executive Vittorio Colao said, “In Europe, conditions are still difficult, and we continue to mitigate these challenges through ongoing improvements to our operating model and cost efficiency.”
The company reiterated its fiscal-year guidance of adjusted operating profit at around GBP5 billion and free cash flow in the range GBP4.5 billion to GBP5 billion.
Immediately after the earnings announcement, Vodafone shares rose 1.5% in London.
Meanwhile, European stock markets remained higher. London’s FTSE 100 rose 0.45%, the EURO STOXX 50 advanced 0.75%, France’s CAC 40 tacked on 0.75%, while Germany's DAX picked up 0.95%.