Vodafone Group Plc has reported a good rise in its shares, the most in the past 14 months from its business in the European market, representing signs of recovery for the company. At the same time, the company has reported decline in its earnings from the service revenue segment quite smaller than what some analysts had estimated.
Excluding acquisitions and currency swings, the company lost nearly 1.5% on its shares in the last quarter due to reduced earnings in service revenues, the money it earns from traffic on its network and customers’ plans. The decline in shares is comparatively less than what was predicted by some analysts - an average of 2.6 percent decline.
These revenues also underscore the early results observed in Vodafone’s US$30 billion network improvement program which was meant to allure customers on spending more on video downloads and web surfing.
Vodafone is the latest European telecom operator to have shown improvement in its shares after years of struggle at earning profits in the intense price wars observed in the telecom industry. Rival telecom companies Orange SA and Deutsche Telekom (DTE) AG have also observed rise in their revenues in the latest quarter.
This is a sign that Europe’s telecom industry is on the way to recovery. With more carriers reporting more than expected revenues, this might instead seem as more of a stampede in the highly competitive market.
Vodafone’s shares increased by 5.4 percent and reached 219.05 pence in London. This is the steepest increase in company’s shares since the time Vodafone had publicly declared that it was in talks to sell its stake in Verizon Wireless to its US partner Verizon Communication Inc.