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.