Shares in Vodafone edged up more than 2 per cent yesterday after Europe's biggest mobile operator reported increases in revenue per user in its two main markets, Britain and Germany, along with a surge in US subscribers.
Vodafone shares, which are held by at least 400,000 people in the Republic, climbed 2.65 per cent to close at 97p sterling in late trading in London, still a long way off the £2-plus figure at the time of its purchase of Eircell.
The stock wobbled early on, held back by continued weakness in Japan and lingering doubts about the sustainability of group subscriber and revenue growth.
User numbers fell in Germany and Britain as Vodafone let lower-spending customers leave its network. But Vodafone chief executive, Mr Chris Gent, said he expected growth to resume in Germany in the second quarter, and in Britain in the third.
Group subscriber growth of 2.8 million in the June quarter was above analysts' forecasts and included 1.4 million users secured via acquisition.
Now at 103.9 million worldwide, Vodafone expects full-year customer growth of about 10 million.
But since a majority of Europeans already have a mobile phone, operators have shifted their focus away from massive user growth at any cost towards boosting average revenue per user instead.
Operators hope new devices capable of downloading games and video clips will help them make enough money to justify the billions of dollars spent on licences and new networks.
