In a first quarter trading update reported this morning, Vodafone said adjusted revenue over the period rose by 2.2% which was slightly above market expectations. There was more good news as the group reported continued growth in India and the Middle East and it provided some confidence over European operations where it gets around two thirds of sales.
Vodafone stated that trading in the first quarter was consistent with management’s expectations, enabling them to maintain a positive outlook for the financial year.
Customer demand for data continues to grow very quickly as 4G adoption drives ongoing data growth. Indeed, over the period 4G customers doubled to 52.5m and data volumes increased by 63%.
Vodafone’s chief executive Vittorio Colao said, “Customers in multiple markets are attracted by our ‘more-for-more’ commercial offerings of larger data bundles and extra services, while we are seeing continued success with our fixed broadband and enterprise strategies.”
“Like many companies, the group stated that it is too early to access Brexit. However, interested investors should note that foreign exchange movements contributing a 1.9% negative impact during the period.
“The good dividend yield could make this an attractive stock for income seekers willing to take on a low to medium level of risk.”