Vodafone blames Vodacom for revenue slowdown
Vodafone expects about 3% growth in underlying adjusted core earnings for the full year
London — Vodafone listed poor results from its 62.5%-owned South African subsidiary Vodacom among the reasons for a decline in its third-quarter revenue.
Vodacom's UK parent said its key revenue measure deteriorated in the third quarter, down 40 basis points quarter on quarter to 0.1%, reflecting a slowdown in SA along with continuing price competition in Spain and Italy.
Analysts had expected growth of 0.3%.
The world's second-largest mobile operator said competition in the Spanish and Italian markets had moderated through the quarter.
"Lower mobile contract churn across our markets and improved customer trends in Italy and Spain are encouraging; however, these have not yet translated into our financial results," CEO Nick Read said on Friday.
He said the signs of improvement underpinned confidence in Vodafone's full-year guidance.
Vodafone expects about 3% growth in underlying adjusted core earnings for the full year, with free cash flow before spectrum costs coming in at about €5.4bn.
Reuters with Staff Writer