A recovery in Europe helped Vodafone (LON:VOD) to ring up a better-than-expected rise in second quarter revenue and predict forecast-topping earnings .
Chief executive Vittorio Colao said an increasing number of the company's European businesses were returning to growth.
He also said the group was benefiting from some easing of regulatory pressures and a steady improvement in the macro-economic environment.
European service revenue for the six months to September 30 was still down 1.3% on an "organic" basis and 6.2% off in reported terms.
But overall group service revenue on a reported basis was also 3.7% down and 1% ahead on an organic basis.
Overall group first-half revenue was 2.8% ahead at £20.3bn.
The group said it had its fifth consecutive quarter of improving revenue trends, with second quarter group organic service revenue rising 1.2%, Europe down 1% and Africa, Middle East and Asia Pacific up 6.7%.
It nudged its full-year guidance for pre-tax earnings before interest, depreciation and amortisation (EBITDA) up to between £11.7bn and £12bn.
First-half EBITDA rose 1.9% to £5.8bn. Mobile data traffic rose 75% in the period and the average usage per customer in Europe lifted 39% year-on-year in the second quarter.
Chief executive Vittorio Colao said: "We have reached an important turning point for the group with a return to organic growth in service revenue and EBITDA in the first half of the financial year."
Shares rose 7.7p or 3.6% to 222.15p.