In a double dose of cheer, Vodafone also hiked its full-year earnings growth targets

Vodafone shares on the up

In a double dose of cheer, Vodafone also hiked its full-year earnings growth targets

In a double dose of cheer, Vodafone also hiked its full-year earnings growth targets

Shares in Vodafone have surged after the telecoms giant swung to a half-year profit and upped its growth outlook despite pressures in its India business.

The firm was up 5 per cent in morning trading on the London Stock Exchange, after it recorded a €1.2billion profit for the six months ending in September, up from a €5billion loss over the period last year.

The major boost came after the group booked a €5billion charge linked to its Indian operation during the six-month period in 2016.

In a double dose of cheer, Vodafone also hiked its full-year earnings growth targets from between 4 per cent and 8 per cent to around 10 per cent.

It means the company is expecting annual earnings of between €14.75billion and €14.95billion.

But despite the profits swing, group revenue slipped 4.1 per cent to €23.08billion following the consolidation of its Vodafone Netherlands business and the creation of joint venture VodafoneZiggo.

It was also another tough six months in India where Vodafone suffered a 39 per cent fall in underlying earnings there to €557million.

India is Vodafone’s biggest market by subscribers and the telecoms industry has been upended for a year by a price war triggered by the launch of Reliance Jio, a new venture backed by the country’s richest man, Mukesh Ambani.

Vodafone agreed in January to combine its Indian unit with Idea Cellular to create a market leader to take on new entrant Reliance Jio Infocomm.

Vodafone also said earlier this week it would sell its mobile phone masts in India, owned separately from its Indus Towers joint venture, to American Tower Corp.

Group chief executive Vittorio Colao added that competition in the India market was ‘intense’, but the group had ‘maintained good commercial momentum’.

He said: ‘Revenue grew organically in the majority of our markets driven by mobile data and our continued success as Europe’s fastest growing broadband provider.

‘Enterprise revenues continue to grow, led by our Internet of Things (IoT), Cloud and Fixed services, and for the second year running we achieved an absolute reduction in our operating costs.

‘As a result, we are able to report a strong financial performance, with substantial EBITDA (earnings before interest, taxes, depreciation and amortisation) margin expansion and profit growth, and we are raising our financial outlook for the year.’

Posted on; DailyMail>>

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