Vodafone Group reported revenues for the three months to June up 3.5 percent from a year earlier to GBP 11.659 billion. Services revenues rose 2.6 percent to GBP 10.858 billion and were up 1.5 percent on an organic basis. Service revenue growth was supported by the emerging markets, with organic increases of 16.8 percent in India, 32.1 percent in Turkey and 7.8 percent at Vodacom in Africa. At its European markets, Vodafone said termination rate cuts limited growth. It saw organic service revenues grow 1.7 percent in the UK and edge up 0.2 percent in Germany, while Italy fell 1.5 percent and Spain deteriorated to minus 9.9 percent after price cuts there. Overall, Europe posted an organic drop of 1.3 percent in service revenues, while Africa, Middle East and Asia Pacific grew by 8.7 percent. Voice revenues fell 3.5 percent to GBP 6.692 billion, offset by 27 percent growth in data services to GBP 1.483 billion. Almost 20 percent of Vodafone customers in Europe now have a smartphone. Fixed-line revenue improved 8.7 percent to GBP 899 million, and the operator had 8.6 million fixed customers including 6.2 million on broadband at the end of June. Free cash flow of GBP 1.3 billion was GBP 0.5 billion lower year on year, as capex increased 15.9 percent to GBP 1.207 billion. Vodafoen said trading in the quarter was in line with its expectations, with a "resilient performance in northern Europe and good momentum in emerging markets". As a result, the company maintained its outlook for the fiscal year to March 2012, for operating profit of GBP 11.0-11.8 billion and free cash flow of GBP 6.0-6.5 billion. On a proportionate ownership basis, Vodafone had 361.418 million mobile customers at the end of June, up from 347.708 million in March.
