Vodafone German woes continue as guidance held

(Sharecast News) - Vodafone on Tuesday reported another revenue decline in its key German market, denting a solid overall third quarter performance across other regions. The telecoms giant said German service sales were down 6.4% in the period, compared with a 6.2% decline in the previous three months, primarily due to the impact of a new state media law on pay TV. Despite the fall Vodafone reiterated full year guidance of €11bn in core earnings adjusted free cash flow of at least €2.4bn.

Service revenue for the group grew 5.2% in the three months to December 31 to €9.8bn, driven by the UK, Turkey and Africa.

The company added that its now cleared merger with Three in the UK was expected to formally complete in the next few months.

"We are continuing to invest in the turnaround of our German business and we are starting to see improving customer trends, although conditions have become more challenging in the mobile market," chief executive Margherita Della Valle.

Reporting by Frank Prenesti for Sharecast.com