Vodafone Group PLC (LSE:VOD) unveiled stronger revenue for the third quarter as the telecommunications group edges closer to completing its £15 billion Three tie-up in the UK, but this was in spite of continued trouble for its German business.
Group revenue increased 5% to €9.8 billion (£8.1 billion), driven by growth in the UK, Turkey and Africa, Vodafone said on Tuesday.
Growth came despite a 6.4% decline in German sales on television law changes, with Vodafone flagging efforts to turn around the division.
Adjusted earnings climbed 2.2% to €2.8 billion, as service growth in “most markets” and lower European energy costs offset the impact from the German business.
Guidance for around €11 billion in full-year adjusted earnings and adjusted free cash flow of at least €2.4 billion was reiterated.
Vodafone had completed the sale of its Italian division for €8 billion during the quarter, as the merger of its UK business with Three was also approved.
Some €2 billion of proceeds would be used for buybacks once an existing repurchase programme was completed, with a final €0.5 billion tranche kicking off today.
“When the UK merger completes in the next few months, we will have fully executed Vodafone's reshaping for growth,” chief executive Margherita Della Valle said.
“We are on track to grow in line with our full-year guidance for this year, which we reiterate today, and are looking forward to a stronger Vodafone in the years ahead.”