Vodafone has reported that its half-year revenue has dropped 4.3% year-on-year, now standing at €21.9bn (£19bn).

The British telecommunications firm revealed this was a result of falling customer numbers in some areas of the business, despite seeing an increase in organic revenue following price hikes.

The underlying cash profit at Vodafone was up 0.3% to €6.4bn (£5.56bn), but this has grown at a slower pace than revenue due to “significant” increases in energy costs.

Free cash outflows decreased from €3.2bn (£2.78bn) to €2bn (£1.74bn) year-on-year, whilst net debt increased by €2.9bn (£2.52bn) over the first half of the year, now standing at €36.2bn (£31.47bn) overall.

Vodafone has said that during its full-year guidance has been maintained during the first half of the year, with the firm expecting to generate underlying cash profits of approximately €13.3bn (£11.56bn).

In the first half of the company’s financial year, Vodafone has reduced its employee headcount by 2,700, which is in line with its previously announced plan to trim 11,000 roles over the next three years.

Group chief executive officer, Margherita Della Valle, said: "During the first half of the year, we have delivered improved revenue growth in nearly all of our markets and have returned to growth in Germany in the second quarter.

"Vodafone's transformation is progressing. Our focus on customers and simplifying our business is beginning to bear fruit, although much more needs to be done. We have also announced transactions to strengthen our position in the UK and exit the challenging Spanish market in order to right-size our portfolio for growth."

Investment director at AJ Bell, Russ Mould, added: "Vodafone’s results are a checklist of everything bad about a company. It has swung to a loss-making position, revenue is down, the dividend is not growing, there is negative free cash flow and net debt has ballooned.

"We’ve got the usual rhetoric from the chief executive that the turnaround story is making progress but at the end of the day it’s yet another set of results that remind us how Vodafone has lost its way big time.

"Work is underway to restructure the group but don’t hold your breath for rapid change."

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