Vodafone Increases its Guidance Moving Forward

The world’s second biggest mobile operator, Vodafone, revealed this week that it has raised its full-year earnings guidance that reflects improving organic growth trends as difficult markets in Spain and Italy start to ease and it integrates its German cable acquisition.

Vodafone said that its organic service revenue had grown 0.3% in the first half, as it returned to growth in the second quarter thanks to improvements in South Africa, Spain and Italy and a solid retail performance in Germany.

The company’s organic core earnings saw a gain of 1.4% in the half and Vodafone said that its growth rate would speed up in the second half.

Vodafone has now forecast for adjusted core earnings to be 14.8-15.0 billion euros from its previous forecast of 13.8-14.2 billion euros.

Chief Executive Nick Read said he was pleased at the speed with which he was executing his plan.

“This is reflected in our return to top-line growth in the second quarter, which we expect to build upon in the second half of the year in both Europe and Africa,” he said on Tuesday.

It was back in May that the company had slashed its dividend for the first time. Since then the stock has rebounded 30%.