Vodafone reports 41% profits increase

Vodafone has reported a strong 30 per cent rise in first-half core earnings and revenue ahead of forecasts, helping cut its bottom…

Vodafone has reported a strong 30 per cent rise in first-half core earnings and revenue ahead of forecasts, helping cut its bottom-line loss by more than half.

The mobile phone company said proportionate earnings before interest, tax, depreciation and amortisation rose 30 per cent to £6.2 billion in the six months to September 30th.

Proportionate mobile revenue climbed 15 per cent to £15.5 billion, beating expectations.

Vodafone shares leapt five per cent to 103p in pre-market trade on what analysts called a "very strong" set of numbers.

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Vodafone is stuck in the middle of a waiting game with French-US media group Vivendi Universal, which looks poised to make a rival bid for control of French joint venture Cegetel. Vodafone has ruled out a bidding war on several occasions, but some investors say this position could change.

Vodafone has bid €6.77 billion in cash for Vivendi's 44 per cent stake in Cegetel. Vodafone has already agreed to buy BT Group's 26 per cent stake in the French company for €4 billion and SBC's 15 per cent stake for €2.03 billion.

But Vivendi can pre-empt either or both of the Vodafone offers if it can raise the cash to do so.