Shares in Vodafone (LON:VOD) have lost ground in London this morning as the company revealed a drop in its total revenue for the quarter ended December 31. The telecoms giant, however, nevertheless reaffirmed its full-year outlook for earnings growth.
As of 09:34 GMT, Vodafone’s share price had given up 1.18 percent to 221.95p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.09 percent higher at 7,539.97 points. The group’s shares have added more than 15 percent to their value over the past year, as compared with about a six-percent rise in the Footsie.
Vodafone’s revenue drops
Vodafone reported in a statement this morning that its total revenue had dropped 3.6 percent to €11.8 billion in the three months to December 31, attributing the decline to deconsolidation of its business in the Netherlands along with currency headwinds. The telco’s organic service revenue, however, rose 11 percent to €10.2 billion, marking similar growth to the previous quarter’s 1.3-percent rise.
“We have maintained good commercial momentum in the third quarter,” Vodafone’s chief executive Vitorio Colao commented in the statement, adding that the telco was confident that it will meet its full-year guidance. The blue-chip group reiterated today that it expects to deliver organic adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) growth of around 10 percent for the full year.
Telco updates on India merger
Vodafone also updated investors on its progress in India where it is merging its unit with local provider Idea Cellular amid stiff competition in the country’s telecoms market. The FTSE 100 group noted that it was making ‘good progress’ in securing the necessary regulatory approvals and the merger was now expected to complete during the first half of calendar 2018.