Vodafone topped average forecasts for half-year revenue and earnings per share and increased its share buy-back programme today, but its shares fell after it warned growth would slow in 2007.
Vodafone, the world's largest mobile phone company by revenue, said earnings rose to €9.85 billion on revenue of €27.2 billion - a touch above an average analyst forecast.
In Ireland, customer growth and the success of non-voice offerings led to a 6.7 per cent increase in service revenue.
Vodafone also raised its share buy-back programme by £2 billion to £6.5 billion for the year to March 2006 while increasing its dividend by 15 per cent to 2.2 pence - in line with forecasts.
Vodafone said 2007 free cashflow, mobile revenue growth and mobile EBITDA margins outside Japan would be lower than in 2006, hit by increasingly mature and competitive markets, investments and customer promotions and regulatory price cuts.
Vodafone shares fell 4.3 per cent to 138-3/4 pence by 8.09am, while the DJ Stoxx European telecoms index was flat.
Analysts had been braced for half-year margins to be hit by new accounting rules in France and as Vodafone, which reported under new International Financial Reporting standards, accounted for a larger proportion of its struggling Japanese business.