Vodafone lowers expectations despite positive Q2 sales

Vodafone has lowered expectations for the rest of this year despite reporting a 19% increase in revenue and an 8.5 million increase in customers. The mobile operator reported its results for the second quarter ending June 30 today (July 22).

The mobile operator says group revenues rose by 19% to £9.8bn over the period, while its customer base rose to 269 million, but it has lowed its outlook for full-year recevenue to the lower end of expectations, around £39.8bn, due to the tough economic environment. It also blamed weak equipment sales, including mobile handsets and accessories, for the reduction.

Arun Sarin, the outgoing chief executive of Vodafone, says: “Whilst we expect revenue around the bottom of our outlook range, our continued focus on cost reduction enables us to reiterate our operating profit and cash flow guidance for the year.”

Meanwhile, LG Electronics also reported its results for the quarter ending June 30 yesterday. It says that it shipped a record 27.7 million handsets during the period – an increase of 45% – as its Viewty, Voyager and Secret models helped meet demand for touch screen handsets. It will now concentrate on marketing its premium phones over fears of “slowing demand” hitting its mobile phone division.

Latest from Marketing Week

PLEASE SIGN IN OR REGISTER. IT'S FREE, QUICK AND EASY!

Access Marketing Week’s wealth of insight, analysis and inspiration that will help you develop as a marketer and leader.

Register and receive the best content from the only title 100% dedicated to serving marketers' needs.

We’ll ask you just a few questions about what you do and where you work, so we can make Marketing Week more relevant to you.

Register now

THE BEST CONTENT

Our award winning editorial team and columnists will ask the biggest questions about the biggest issues on everything from strategy through to execution to help you navigate the fast moving modern marketing landscape.

THE BIGGEST ISSUES

From the opportunities and challenges of emerging technology to the need for greater effectiveness, from the challenge of measurement to building a marketing team fit for the future, we will be your guide.

PERSONAL AND PROFESSIONAL DEVELOPMENT

Information, inspiration and advice from the marketing world and beyond that will help you develop as a marketer and as a leader.

Dedicated to developing your skills and helping you achieve marketing excellence. Find guidance on leadership, professional development and the latest industry jobs.

Having problems?

Contact us on +44 (0)20 7292 3711 or email subscriptions@marketingweek.com

If you are looking for our Jobs site, please click here