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LONDON, Nov 12 (Reuters) - Vodafone, the world's
second largest mobile operator, increased its full-year earnings
guidance, reflecting improving organic growth trends as
difficult markets in Spain and Italy start to ease and it
integrates its German cable acquisition.
The company reported organic service revenue growth of 0.3%
in the first half, as it returned to growth in the second
quarter thanks to improvements in South Africa, Spain and Italy
and a solid retail performance in Germany.
Organic core earnings rose 1.4% in the half, and it said its
growth rate would accelerate in the second half, enabling it to
up its forecast for adjusted core earnings to 14.8-15.0 billion
euros from its previous forecast of 13.8-14.2 billion euros.
But it tempered it forecast for free cash flow to "around"
5.4 billion euros, from "at least" 5.4 billion euros, as it said
lower cash flows from India and the sale of New Zealand offset
the initial accretion from its Liberty Global acquisition.
Chief Executive Nick Read said he was pleased at the speed
with which he was executing his plan.
"This is reflected in our return to top-line growth in the
second quarter, which we expect to build upon in the second half
of the year in both Europe and Africa," he said on Tuesday.
Read cut Vodafone's dividend for the first time in May after
tough market conditions and a need to invest in its networks and
airwaves caused him to backtrack on his pledge not to reduce the
payout.
Shares in the firm have recovered 30% from a trough since
the dividend cut.
(Reporting by Paul Sandle; editing by Kate Holton and James
Davey)
