Vodafone enjoys steady rise in profit

Vodafone Group has announced that it has seen a 2.2 per cent year-on-year increase in its revenue in the six months ending 30 September 2011.

The firm generated £23.5bn ($37.8bn) in the period, with its adjusted operating profit standing at £6bn – 4.4 per cent more than the £5.8bn it made in the same period last year.

Group service revenue stood at £21.9bn , with its European operations accounting for £15.3bn and Africa, Middle East and Asia Pacific responsible for £6.4bn.

The company said that its full-year operating profit will improve on initial expectations and reach between £11.4bn and £11.8 billion for 2011. It explained that this is partly due to the strong performance by Verizon Wireless, the US mobile operator in which the group has a 45 per cent stake.

“A year on from announcing our updated strategy, we are making clear progress,” said Vittorio Colao, group chief executive. “We are gaining share in most of our major markets, through our focus on superior network quality and an improved customer experience. In addition, we are achieving sustained growth in the key areas of data, emerging markets and enterprise.”

He added that, at the same time, the firm has gained from the dividend earning due to its stake in VerizonWireless, and the majority of this has been pledged to shareholder returns.

“Although we remain mindful of the uncertain economic outlook, we are confident that we have the right strategy and capabilities to continue to perform consistently through top line growth, cost efficiency, investment and cash generation,” Colao concluded.