Vodafone Group Plc,
Europe's largest mobile phone company, has reported a 7.7 per cent fall in its revenue for the three months ending June 30, as gains in emerging markets were offset by a patchy performance in Europe.
Adverse currency movements also
dented revenue as the company's performance fell short of market forecasts.
On an organic basis - that is, not counting acquisitions, disposals and currency swings - revenue rose 0.6 per cent during the quarter. The company did not report profit figures in the trading update.
Vodafone shares were down 1.7 per cent at 180 pence in morning trading in London.
"In addition to the previously announced writedown of its assets, the situation in southern Europe continues to be troublesome both in economic and competitive terms," said Richard Hunter, head of equities at Hargreaves Lansdown Stockbrokers.
However, Hunter said Vodafone's strong cash generation, geographical diversification and 5.2 per cent dividend yield continued to make shares attractive.
In May, Vodafone announced a 4 billion pounds ($6.3 billion) writedown on the value of assets related to its businesses in Italy, Spain, Portugal and Greece.
The company said service revenue on an organic basis was up 16 per cent in India and nearly 19 per cent in Turkey. It was up 4.2 per cent in Germany but down nearly 7.7 per cent in Italy and down 10 per cent in Spain.
Verizon Wireless, Vodafone's US joint venture with Verizon Communications, reported an 8.2 per cent increase in revenue on an organic basis and a 4.9 per cent increase in customers compared with a year earlier.
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