Vodafone beats estimates as organic revenue trends improve in Q3

Vodafone dialed in a smaller-than-expected decline in organic service revenues in the third quarter thanks to a steady recovery in Europe and a return to growth in the UK, keeping full-year profit guidance in line.Group revenues totalled £10.88bn in the three months to 31 December 2014, up 13.5% over last year, as service revenues increased 12.4% to £9.79bn.On an organic basis, service revenues slipped 0.4% year-on-year, a sharp improvement on the 2.8% decline in the first half and besting analysts' forecast declines ranging from 0.5% to 1%."We have achieved another quarter of improving revenue trends in most of our major markets," said chief executive Vittorio Colao.Organic service revenues fell by 2.7% across Europe to £6.63bn, much better than the 6.5% plunge in the first half, as declines in Germany, Italy and Spain eased on the back of contract customer growth and a more stable pricing environment.Meanwhile, UK organic service revenues recorded growth of 0.9% to £1.53bn, compared with a 3.1% drop in the first six months of the year.Elsewhere, Africa, Middle East, Asia-Pacific (AMAP) organic service revenues improved 5.9% in the third quarter to £3.06bn, compared with 5.7% growth in the first half.The group said its performance in the third quarter was in line with expectations, as it held on to its target for earnings before interest, tax, depreciation and amortisation of £11.6bn-11.9bn for the year ending 31 March 2015, down from £12.8bn the year before.The stock was down 0.5% at 235.25p in early deals on Thursday.