# Vodafone posts rise in Q1 revenue as Europe returns to growth
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-07-23
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Vodafone Reports Strong Rise in First-Quarter Service Revenue
Meta Description: Vodafone sees 3.3% rise in service revenue, back to growth in Europe and Africa. Shares up 2% as revenue beats forecasts. Recovery not linear, but progressing
URL: https://financedigest.com/vodafone-posts-rise-in-q1-revenue-as-europe-returns-to-growthhtml

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By Paul Sandle

LONDON (Reuters) -Mobile operator Vodafone reported a better-than-expected rise in first-quarter service revenue on Friday as more stores reopened and tourism made a tentative return following last year’s COVID-19 disruption.

Chief Executive Nick Read said the company was back to service revenue growth in Europe as well as Africa as it reported a 3.3% rise in service revenue.

This [growth was broad-based within both consumer and business](https://www.financedigest.com/which-kpis-should-a-budding-business-focus-on-for-sustained-growth.html "Which KPIs should a budding business focus on for sustained growth?") segments, with the vast majority of our markets contributing,” he said.

Vodafone shares were [trading 2% higher in early deals on Friday as revenue growth](https://www.financedigest.com/wto-sees-subpar-2023-trade-growth-with-multiple-risks.html "WTO sees “subpar” 2023 trade growth with multiple risks") beat analysts’ forecasts of a 1.4% rise.

[Retail footfall across its four largest markets was up 70% year-on-year but still 40%](https://www.financedigest.com/uk-retailers-see-40-jump-in-boxing-day-shoppers-springboard.html "UK retailers see 40% jump in Boxing Day shoppers -Springboard") below pre-COVID levels, Read said.

Roaming and visitor revenue also made only a partial recovery, up 56% on last [year when strict COVID-19 restrictions were in place in Europe but 54% lower than pre-pandemic](https://www.financedigest.com/heathrow-airport-says-return-to-pre-pandemic-demand-years-away.html "Heathrow Airport says return to pre-pandemic demand years away") levels.

“The recovery was never going to be linear,” Read told reporters.

We would like to think that when we get to September and the [back to school](https://www.financedigest.com/its-back-to-school-for-investors-as-uk-student-accommodation-less-vulnerable-to-brexit-shock-reports-jll.html "It’s back to school for investors as UK student accommodation “less vulnerable to Brexit shock” reports JLL") season that we are largely in a more normalised environment. But it won’t be normal, it will be normalising.”

The company said it maintained momentum in its biggest market Germany, with growth accelerating to 1.4% against 1.2% in Q4, while both Britain and Spain [returned to quarter-on-quarter growth as COVID-19 restrictions eased](https://www.financedigest.com/uks-j-d-wetherspoon-returns-to-profit-as-supply-issues-ease.html "UK’s J D Wetherspoon returns to profit as supply issues ease").

[Continued competition in Italy](https://www.financedigest.com/workday-continues-european-growth-with-italy-launch.html "Workday continues European growth with Italy launch") resulted in a 3.6% decline, against a 7.8% decline in the previous quarter.

Vodafone reported strong growth in Africa, where its [financial platform](https://www.financedigest.com/make-way-for-the-rise-of-the-finance-super-apps-consolidation-of-financial-digitisation-tools-platforms.html "Make way for the rise of the Finance Super Apps – Consolidation of Financial Digitisation Tools & Platforms") M-Pesa saw transaction volumes increase 45% year-on-year.

The group said it was on track to deliver its full-year targets of 15.0-15.4 billion [euros](https://www.financedigest.com/eu-seeks-clarification-on-italy-post-covid-plan-freezes-19-billion-euros.html "EU seeks clarification on Italy post-COVID plan, freezes 19 billion euros") in adjusted earnings and at least 5.2 billion euros in free cash flow.

(Editing by Kate Holton and Joe Bavier)


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