On Friday, mobile operator Vodafone reported a 3.3 percent increase in Q1 revenue. The figure it published for revenue was better than what analysts had expected. “This growth was broad-based within both Consumer and Business segments, with the vast majority of our markets contributing”, Nick Read; the company’s Chief Executive Officer said highlighting that the company was back to service revenue growth in Europe as well as Africa.
Vodafone shares were trading 2% higher in early deals on Friday as revenue growth beat analysts’ forecasts of a 1.4% rise.
The company experienced recovery in several areas. According to Read, retail footfall across its four largest markets increased by 70% year-on-year, but still 40% below pre-COVID levels. COVID-19 restrictions crucially affected the company’s roaming and visitor revenue, but however saw a recovery in 2021; a 56% increase compared to last year, but 54% lower compared when compared with pre-pandemic levels.
Read stated that the operating and retail environment in Europe had not yet returned to normal conditions, but that, regardless, the company was delivering a good service performance. “In our Business segment, we are seeing stronger growth with our public sector and corporate customers, whilst further building a pipeline of demand for our digital services, such as IoT, security and cloud,” Head said.
Read added that the company had entered the year in line with its medium-term growth ambition, which it announced in May, and was on track to deliver its guidance for the year, one which it said will be carried out with a continued focus to optimise the company’s portfolio, and to accelerate the delivery of shareholder value.
Vodafone maintained momentum in its biggest market Germany with growth accelerating to 1.4% against 1.2% in Q4. Read accredited the maintained momentum to the company’s commercial and operating strategy.
Vodafone also reported strong growth in Africa, where its financial platform M-Pesa saw transaction volumes increase 45% year-on-year. M-Pesa allows users to deposit, withdraw, transfer money, pay for goods and services, access credit and savings, all with a mobile device, and was launched in Kenya, Africa in 2007.
Vodafone said it is on track to deliver its full-year targets of 15 to 15.4 billion euros in adjusted earnings and at least 5.2 billion euros in free cash flow.
Ibhadojemu Lucky Emmanuel is a graduate of Education and Economics from the University of Benin. He has a passion for tech and business and has been writing professionally for over a period of five years. He's written across various topics and segments and knew tech-business was it when he first stumbled on it. He has a great passion for music and arts, and wants to visit as many countries as he can someday.
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.
