Mobile phone behemoth Vodafone’s (NASDAQ:VOD) (LON:VOD) cautioned its woes in Europe have spread to Germany and the UK, while the south of the region still remains “difficult”.
For the quarter to end June, revenues fell by 3.5% overall and by 1.3% excluding joint ventures.
Southern Europe was again weak with revenues in Italy down 17.6%, Spain 10.6% lower and other southern European markets down 13.6%.
Meanwhile, northern Europe also saw issues.
In Germany, where the company is in the process of buying Kabel Deutschland, service revenue declined by 5.1%, compared to a 3.5% decline in the prior quarter.
Service revenue in the UK fell by 4.5%.
"We continue to see strong growth from our emerging market operations; however conditions in Europe remain challenging due to ongoing economic and regulatory pressures and increased competitive intensity within some markets during the quarter," it said, adding that its US associate, Verizon Wireless, continued to perform strongly.
Offsetting some of the problems in Europe, there was also good growth in Africa, the Middle East and in Asia Pacific.
Chief executive Vittorio Colao told investors: “Growth in emerging markets has accelerated, we now have over 5 mln customers benefiting from Vodafone Red, and 4G is live in ten markets.
"In addition, the proposed acquisition of Kabel Deutschland will create an excellent platform for our unified communications strategy in our most important market.
“Although regulation, competitive pressures and weak economies, particularly in Southern Europe, continue to restrict revenue growth, we continue to lay strong foundations for the longer term."
Vodafone shares gained slightly - 0.34% - on the open to stand at 192 pence each in London trade. Reported by Proactive Investors 22 hours ago.
For the quarter to end June, revenues fell by 3.5% overall and by 1.3% excluding joint ventures.
Southern Europe was again weak with revenues in Italy down 17.6%, Spain 10.6% lower and other southern European markets down 13.6%.
Meanwhile, northern Europe also saw issues.
In Germany, where the company is in the process of buying Kabel Deutschland, service revenue declined by 5.1%, compared to a 3.5% decline in the prior quarter.
Service revenue in the UK fell by 4.5%.
"We continue to see strong growth from our emerging market operations; however conditions in Europe remain challenging due to ongoing economic and regulatory pressures and increased competitive intensity within some markets during the quarter," it said, adding that its US associate, Verizon Wireless, continued to perform strongly.
Offsetting some of the problems in Europe, there was also good growth in Africa, the Middle East and in Asia Pacific.
Chief executive Vittorio Colao told investors: “Growth in emerging markets has accelerated, we now have over 5 mln customers benefiting from Vodafone Red, and 4G is live in ten markets.
"In addition, the proposed acquisition of Kabel Deutschland will create an excellent platform for our unified communications strategy in our most important market.
“Although regulation, competitive pressures and weak economies, particularly in Southern Europe, continue to restrict revenue growth, we continue to lay strong foundations for the longer term."
Vodafone shares gained slightly - 0.34% - on the open to stand at 192 pence each in London trade. Reported by Proactive Investors 22 hours ago.
