Vodafone Q1 revenue up 9.3 percent

LONDON - Vodafone Group PLC said Friday that first-quarter revenue rose 9.3 percent to 10.7 billion pounds ($17.7 billion) on the strength of exchange rate movements and acquisitions.

On an organic basis, which strips out currency effects and acquisitions less than two years old, revenue for the quarter ending June 30 was down 2.1 percent as the recession across Europe weakened demand.

Revenue on an organic basis was down 8.1 percent in Spain, 4.8 percent in Germany and 4.7 percent in the United Kingdom.

Verizon Wireless, the company's U.S. joint venture with Verizon Communications Inc., gained 1.1 million net mobile customer additions during the quarter, Vodafone said.

Vodafone said it expected to achieve 65 percent of its target of 1 billion pounds in savings by the end of the current financial year.

Shares in the company closed up 2.9 percent at 120.25 pence in London.

"Vodafone results pleased investors largely because there were no unwelcome surprises," said Joshua Raymond, market strategist at City Index.

"Concerns around the fiercely competitive nature of the industry and the impact of roaming charges have proved something of a headwind on the shares of late, which have shed 5 percent over the last quarter," said Richard Hunter, analyst at Hargreaves Lansdown Stockbrokers in London.

"The company remains a cash generative behemoth and the yield of nearly 7 percent is supportive on balance, the general market view is that the shares are a cautious buy," Hunter added.

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On the Net: http://www.vodafone.com

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