Vodafone revenues drop in third-quarter
British mobile phone giant Vodafone posted falling quarterly revenues on Thursday and blamed a poor performance in southern Europe, which has been hit hard by the ongoing debt crisis.
Revenues sank 2.3 percent to £11.62 billion in the three months to the end of December, the third quarter of Vodafone's financial year. The figure was in line with analysts' expectations.
"Market conditions in southern Europe remain difficult," Vodafone said in a trading update, adding that it was hit by weak demand in Italy and Spain.
Earlier this week, Vodafone decided to scrap talks aimed at combining its Greek unit with Greece's telecommunications operator Wind Hellas. The group had entered talks over a possible tie-up last August.
During the past year and a half, Vodafone has sold its minority shareholdings in Poland, France, China and Japan, as it seeks to focus on its core operations in Europe, India and the United States.
"We are continuing to make progress in the key strategic areas of data, enterprise and emerging markets," added chief executive Vittorio Colao in Thursday's statement.
"Despite the further deterioration of the southern European economic environment during the quarter, our broad geographic mix is delivering a resilient overall performance.
"Our improved value perception, strong cash generation and healthy balance sheet give us confidence that we can continue to execute well."
