(Alliance News) - Vodafone Group PLC on Monday said its first-quarter performance was in line with expectations, with continued growth seen in both Europe and Africa.
For the three months to June 30, the telecommunications firm reported a 1.6% rise in revenue to EUR11.3 million from EUR11.1 million in the first quarter last year. On an organic basis, revenue was up 2.7%.
Service revenue rose by 2.5% on an organic basis, with growth across Consumer and Business segments. In particular, Vodafone Business service revenue grew 1.7%, supported by higher roaming and digital services revenue.
"We have executed in line with our expectations, delivered another quarter of growth in both Europe and Africa, and seen an acceleration in business growth. Whilst we are not immune to the current macroeconomic challenges, we're on track to deliver financial results for the year in line with our guidance," said Chief Executive Officer Nick Read.
"Our near-term focus on our operational and portfolio priorities remains unchanged. We've made good progress towards stabilising our commercial performance in Germany, and we continue to actively pursue opportunities with Vantage Towers and to strengthen our market positions in Europe."
Vodafone said its Europe Consumer contract mobile average revenue per user grew by 0.7% year-on-year. It added 215,000 mobile contract customers, but lost 72,000 broadband customers in the quarter.
Vodafone also said growth in Africa was supported by data revenue and financial services growth, as its M-Pesa customer base grew to almost 50 million in the quarter.
Looking ahead, Vodafone said it was on track to deliver financial 2023 guidance, with adjusted earnings before interest, tax, depreciation and amortisation after leases expected to be between EUR15.0 billion and EUR15.5 billion and adjusted free cash flow of EUR5.3 billion.
Shares were up 0.1% at 129.14 pence each on Monday morning in London.
By Xindi Wei; xindiwei@alliancenews.com
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Vodafone (VOD)