Vodafone Group PLC (LSE:VOD) shares fell 6% in early trading on Tuesday after the telecommunications group reported a decline in German sales, which offset gains elsewhere.
The company posted a 5% increase in revenue to €9.8 billion (£8.1 billion) for the third quarter, with growth in the UK, Turkey and Africa. However, revenue in Germany, Vodafone’s largest market, dropped 6.4 per cent due to regulatory changes affecting television services.
Adjusted earnings rose 2.2% to €2.8 billion as lower energy costs in Europe and service growth in most markets helped to counterbalance the weakness in Germany.
Vodafone maintained its full-year guidance for adjusted earnings of around €11 billion and free cash flow of at least €2.4 billion.
The company also confirmed the completion of the €8 billion sale of its Italian division and said it would use €2 billion of the proceeds for share buybacks, with a €0.5 billion tranche beginning on Tuesday.
"Challenges remain for Vodafone," said Mark Crouch, analyst at eToro.
"Unable to simply raise prices to prop up the balance sheet – something they've learned the hard way in Germany with declining customer numbers – Vodafone will need to come up with something other than asset sales and price hikes if they are ever to recapture their former glory.”
The stock fell 4.24p to 65.78p.