Vodafone lifts profit guidance as Germany returns to growth

(Sharecast News) - Vodafone on Tuesday said it expected annual profit and cash flow to be at the upper end of expectations as its German operation returned to top line growth in the second quarter of the year.

The telecoms operator said adjusted earnings before interest, taxes, depreciation, amortisation, and leases rose 5.9% to €5.7bn. Vodafone expects a full-year profit of €11.3-11.6bn and adjusted free cash flow of €2.4-2.6bn.

It also unveiled a new progressive dividend policy with a 2.5% increase for the full year.

"In the second quarter we saw service revenue accelerating, with good performances in the UK, Turkey and Africa, and a return to top-line growth in Germany," said chief executive Margherita Della Valle.

"Whilst we have more to do, we delivered good strategic progress in the half year, driving further operational improvements across the business, expanding our customer satisfaction initiatives, and making a fast start in integrating the Vodafone and Three networks in the UK."

Reporting by Frank Prenesti for Sharecast.com