First-half results from Vodafone have reassured the market the mobile phone giant can continue to increase profits in the face of intense competition and expensive bills for third generation licences.
The results were at the top end of expectations despite pressure on margins in Germany and Britain.
Proportionate earnings before interest, tax, depreciation and amortisation (EBITDA) - the company's preferred yardstick - rose 24 per cent to £3.28 billion sterling (€5.46 billion). That compared with forecasts of £3-£3.3 billion.
"We are expecting an improvement in the second half over this very good first half," said Vodafone's chief executive, Mr Chris Gent. "We do believe we're in pretty good shape over the next couple of years."
The company said the cost of acquiring customers squeezed profit margins in Germany and Britain. Margins at its German business fell to 30 per cent from 45 per cent a year earlier as it added a record 5.4 million customers.
In the UK, where customer numbers rose 16 per cent to more than 10.2 million, margins dropped to 30 per cent from 33 per cent.
But Mr Gent said new customers would start contributing to profits in the second half, lifting margins back to 35 per cent in Germany and 33 per cent in the UK by the end of its financial year in March.
Pre-tax profits more than doubled to £1.82 billion sterling. Turnover rose 32 per cent to £10.17 billion and total customer numbers jumped 55 per cent to 65.5 million.
