On Friday, mobile operator Vodafone reported a 3.3 percent increase in Q1 revenue. The figure it published for revenue was better than what analysts had expected. “This growth was broad-based within both Consumer and Business segments, with the vast majority of our markets contributing”, Nick Read; the company’s Chief Executive Officer said highlighting that the company was back to service revenue growth in Europe as well as Africa.
Vodafone shares were trading 2% higher in early deals on Friday as revenue growth beat analysts’ forecasts of a 1.4% rise.
The company experienced recovery in several areas. According to Read, retail footfall across its four largest markets increased by 70% year-on-year, but still 40% below pre-COVID levels. COVID-19 restrictions crucially affected the company’s roaming and visitor revenue, but however saw a recovery in 2021; a 56% increase compared to last year, but 54% lower compared when compared with pre-pandemic levels.
Read stated that the operating and retail environment in Europe had not yet returned to normal conditions, but that, regardless, the company was delivering a good service performance. “In our Business segment, we are seeing stronger growth with our public sector and corporate customers, whilst further building a pipeline of demand for our digital services, such as IoT, security and cloud,” Head said.
Read added that the company had entered the year in line with its medium-term growth ambition, which it announced in May, and was on track to deliver its guidance for the year, one which it said will be carried out with a continued focus to optimise the company’s portfolio, and to accelerate the delivery of shareholder value.
Vodafone maintained momentum in its biggest market Germany with growth accelerating to 1.4% against 1.2% in Q4. Read accredited the maintained momentum to the company’s commercial and operating strategy.
Vodafone also reported strong growth in Africa, where its financial platform M-Pesa saw transaction volumes increase 45% year-on-year. M-Pesa allows users to deposit, withdraw, transfer money, pay for goods and services, access credit and savings, all with a mobile device, and was launched in Kenya, Africa in 2007.
Vodafone said it is on track to deliver its full-year targets of 15 to 15.4 billion euros in adjusted earnings and at least 5.2 billion euros in free cash flow.