Shares in Vodafone (LON:VOD) have jumped about four percent in London this morning, as the telecoms giant lifted its full-year earnings outlook. The move came as the telco updated investors on its half-year performance.
As of 08:34 GMT, Vodafone’s share price had added 4.10 percent to 224.85p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.15 percent higher at 7,426.04 points. The group’s shares have added just under 10 percent to their value over the past year, and are up by some 12 percent in the year-to-date.
‘Good commercial momentum’
Vodafone said in a statement this morning that its total revenue had dipped 4.1 percent to €23.1 billion in the six months ended September 30, primarily due to the deconsolidation of its Netherlands unit, and forex movements. The group’s organic service revenue, however, rose 1.7 percent, while the telco’s adjusted EBITDA came in 13 percent higher at €7.4 billion. Vodafone further hiked its interim payout to shareholders by 2.1 percent to 4.84 eurocents.
“In the first half of the year we have maintained good commercial momentum,” the telco’s chief executive Vittorio Colao commented in the statement, adding that the company was raising its financial outlook for the year. Vodafone now expects organic adjusted EBITDA growth of around 10 percent, as compared with an earlier guidance of between four percent and eight percent.
Vodafone noted that service revenues at its business in India had fallen 15.8 percent, while adjusted EBITDA were 39.2 percent down during the reported period. The results come with the company being in the process of merging its unit in the country with Idea Cellular, amid severe competition in India’s telecoms market following the entry of rival Reliance Jio. Vodafone noted in the statement that the merger was progressing well.
The results follow Vodafone’s deal to sell its standalone tower business in India, unveiled yesterday.