Vodafone Group, the world's largest mobile operator by revenue, posted a 19.1 percent increase in sales for the first quarter, but warned that full-year sales will be on the low end of its previous guidance as it deals with economic weakness and lower-than-anticipated revenue from equipment. As a result, the mobile phone giant's stock opened 9.7 percent lower when the market opened in London today.
Vodafone attributed the jump in sales in the first quarter to growth in its emerging markets. Sales in the three months ended June 30 came in at $19.65 billion from $13.1 billion a year earlier. The company said that while its Spanish operations struggled with a weak economy and strong competition, growth in emerging markets and data revenue made up for the shortfall. Revenues from emerging markets jumped 30.5 percent with 50 percent of the growth coming from India alone.
For the full year, Vodafone now expects full-year revenues at the lower range of $63.1 billion to $64.6 billion.
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