Data compiled by Bloomberg showed that analysts had expected growth of 1.8 percent.
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Huge billing problems caused by a new IT system have made it the most-complained-about mobiles service. Service revenue increased 19.5 per cent in Turkey, 9.4 per cent in Egypt and 6.4 per cent in India.
It did however adfd 28,000 broadband customers in Q1 to take that base to 137,000 subscribers, while adding that trials for Vodafone TV are underway.
On an organic basis, however, group service revenue increased by 2.2%, while excluding the impact of mobile termination rate cuts the company said group service revenue grew by 2.4% y-o-y. The firm attributed that figure to “stabilising customer service levels”.
Service revenue aside the group reported a sales fall of 4.5 per cent, with Europe down 3.2 per cent.
Organic service revenue – the money Vodafone earns from its customers’ monthly phone bills and usage on its network, but not including handset sales – rose 2.2 percent in the first quarter through June, the Newbury, England-based company said Friday.
U.S group Liberty and Vodafone have agreed to form a joint venture in the Netherlands, but analysts have said that the British company’s operations in Africa, Middle East and Asia-Pacific could be an obstacle to deeper collaboration.
“Our growth momentum in AMAP remains strong, with excellent performance in South Africa, Turkey and Egypt and ongoing recovery in India”, he added.
“In Europe, our growth remains stable despite regulatory pressure on roaming revenue, with good performance in Germany, Spain and Italy while we are focused on improving our performance in the United Kingdom”, he said.
‘In the UK, Vodafone’s revenues are still suffering from a change in its billing system, which gave rise to a flood of customer complaints.
Vodafone’s mobile subscriber base now stands at 18.1 million in the UK.
Vodafone has switched to reporting in euros from pounds – reflecting the relatively bigger size of its combined euro zone businesses.
Vodafone has already said it may move its headquarters out of the United Kingdom following the referendum vote because it only does about 11% of its business in Britain and needs to be in the EU.
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UK-based telecoms giant Vodafone Group has published its trading update for the three months ended 30 June 2016.
