(Alliance News) - Vodafone Group PLC said on Wednesday that it performed in line with guidance in its third quarter, hailing a "solid quarter".
In the three months to December 31, revenue rose 4.3% to EUR11.68 billion from EUR11.20 billion a year earlier. On an organic basis, growth was 3.7%.
The telecommunications provider said that service revenue - which includes airtime usage, monthly access charges and roaming - climbed 3.1% to EUR9.65 billion from EUR9.36 billion. It was up 2.7% organically. This is where Vodafone generates most of its revenue.
"Our team has delivered another solid quarter, demonstrating the sustainability of our growth strategy and medium-term ambition. This performance keeps us firmly on track to deliver financial 2022 results in line with the higher guidance we set out in November," Chief Executive Nick Read commented.
"We remain focused on our operational priorities to strengthen commercial momentum in Germany, accelerate our transformation in Spain and position Vodafone Business to maximise European Union recovery funding opportunities. We are also committed to creating value for our shareholders through proactive portfolio actions and continuing to improve returns at pace."
Late last week, Bloomberg reported that activist investor Cevian Capital had taken a stake in Vodafone, and the two had discussed how to boost the performance of the telecom operator.
Vodafone affirmed that it expects annual adjusted earnings before interest, tax, depreciation, amortisation and after leases between EUR15.2 billion and EUR15.4 billion for all of financial 2022. It expects EUR5.3 billion in free cash flow.
In financial 2021, Vodafone reported adjusted Ebitda of EUR14.39 billion and free cash flow of EUR5.02 billion.
Shares in Vodafone were up 2.5% at 131.18 pence on Wednesday morning in London.
By Heather Rydings; heatherrydings@alliancenews.com
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