Vodafone reported a continued improvement in organic revenue growth in its fiscal third quarter to December. Organic group revenue rose 3.5 percent from a year earlier to GBP 11.9 billion, and organic service revenue was up 2.5 percent to GBP 11.0 billion. In Europe, underlying service revenue was up 0.2 percent, led by 7.0 percent growth in the UK and 31.7 percent higher sales in Turkey. In Africa, Middle East and Asia Pacific, service revenue grew 9.3 percent, led by India and Vodacom in Africa. Vodafone also reported strong growth in data revenues, up 27.2 percent on an organic basis. On an annual run rate, data revenue now exceeds messaging revenue, at over GBP 5 billion. Among the operator's other growth pillars, enterprise revenue in Europe was up 1.3 percent, and fixed-line revenue rose 4.7 percent, on a base of 6.0 million customers. The total customer base reached 358.86 million at the end of 2010, after net additions of 15.39 million during the quarter. Following the fifth consecutive quarter in improved service revenue growth, Vodafone said it now expects adjusted operating profit for the full year to March to come in at the end high of its previous guidance, of GBP 11.8-12.2 billion. This does not take into account any boost from Verizon's launch of the iPhone this week. Annual free cash flow is still forecast at over GBP 6.5 billion, and capex should be in line with the previous year.
