Vodafone shares jump on profit improvement

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Vodafone shares jump on profit improvement

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Shares of Vodafone, the world’s second-biggest mobile operator, shot up on Tuesday as it announced an improved full-year earnings forecast. By the end of the session the stock was up 5.39 percent.

Second-quarter revenue was down by only 1.5 percent – way better than the near four or five percent falls recorded in the last six quarters, thanks to more demand in its big European markets .

It is also spending some of the money from the sale last year of its US operations on investment including faster 4G networks.

“There is growing evidence of stabilisation in a number of our European markets,” said Chief Executive Vittorio Colao.

“Our two-year, 19 billion pound (24.24 billion euro) investment programme is well underway, and customers are beginning to see the benefits.”

Vodafone, traditionally a pure mobile player, has embarked on a programme to either build or buy fixed-line superfast broadband networks across Europe to enable it to compete with rivals offering mobile contracts alongside television, broadband or fixed-line deals.

Faced with increased competition from entertainment groups and fixed-line providers, Vodafone also plans to launch a broadband and TV service in its home UK market.

with Reuters