Vodafone’s results better than expected

Vodafone was one of the few major European companies to see its shares rise on Tuesday after reporting first half results slightly ahead of expectations. However the world’s largest mobile phone company lowered its full-year revenue targets – again – and said that was because conditions are getting tougher in the UK and other key markets.

Net income for the six months to the end of September was almost 2.7 billion euros. That is down 35 percent from the same period last year when profit was the equivalent of 4.2 billion euros.

Investors approved of Vodafone’s plans to boost revenues by improving performance rather than growth by expansion and to focus on cost cuts to maintain profits. It is looking to reduce costs by 1.2 billion euros by 2011.

That could mean job losses, but the company declined to say whether it would lay people off. Vodafone’s shares ended the day up 5.4 per cent, having been as much as 11 percent higher at one stage.

Copyright © 2010 euronews