Here’s why Vodafone’s share price fell at the open
Vodafone's share price dropped three per cent at the open after it said earnings would be in the lower end of its previous guidance.
The figures
In its trading update for the quarter ending 31 December, Vodafone said its organic service revenue had grown 1.7 per cent to €12.3bn (£10.5bn).
But it said its full year guidance would come in at the "lower end" of expectations, with organic earnings before depreciation, interest, taxation, depreciation and amortisation (Ebitda) set to come within the three to six per cent range.
Group revenue fell 3.9 per cent to €13.7bn from €14.2bn.
Why it's interesting
It recently emerged that Vodafone is in discussions with the Aditya Birla Group about a merger with Vodafone India and Idea Cellular – a deal that would create one of the world's largest mobile phone operators. Today, Vodafone said it is expecting intense competition in India, and is extending its 4G services to maintain its position in the region.
What Vodafone said
Vittorio Colao, group chief executive, said: "Our overall performance in Europe and Africa remained strong during the third quarter reflecting good execution.
"In Europe, service revenue growth continued, led by Italy, Germany and Spain…In the UK we have made good progress in improving customer service but face heightened price competition in [our business arm] Enterprise."