Vodafone sees year revenue at lower end of range

Mobile phone group Vodafone lowered its outlook for full-year revenue to around the bottom of a previously forecast range due to weak economies and particular pressures in Spain.
Vodafone, the world's largest mobile phone company by revenue, on Tuesday posted first-quarter revenue in line with forecasts at 9.8 bln pounds ($19.57 bln), showing organic growth — which strips out acquisitions and disposals — of 1.7%.
But it said it now expected its full-year revenue to be around the bottom of its previously stated range of 39.8 bln pounds to 40.7 bln pounds due to recent economic weakness and lower than expected equipment revenue.
Traders said they expected Vodafone's shares to fall at the open.
The results will be the last for Chief Executive Arun Sarin, who will step down after five years on July 29 and be replaced by his deputy Vittorio Colao.
Analysts had previously said they expected any impact of a consumer slowdown to be modest in Europe for now, especially as Vodafone's exposure to the low-end consumer market remains relatively low.
Vodafone added 8.5 mln subscribers in the three months to the end of June, taking the company's proportionate customer base to around 269 mln.
"Notwithstanding this more challenging operating environment, we continue to benefit from a diversity of assets and services, with strong revenue growth in Emapa and another good quarter of data revenue growth offsetting weakness in Spain," said Sarin.
"Whilst we expect revenue around the bottom of the outlook range, our continued focus on cost reduction enables us to reiterate our operating profit and cash flow guidance for the year."
The company has been seeking to accelerate pedestrian growth in its core European markets with greater exposure to faster-growing emerging markets from its EMAPA businesses in eastern Europe, the Middle East and Africa, Asia Pacific and affiliates.