Vodafone has increased its earnings guidance range to between €13.2bn and €13.4bn in the full-year after recording an 11.4% rise in its revenue, which totalled €21.9bn in the six months to 30 September.

The telecoms firm said this increase in revenue was driven by strong service revenue growth, which increased by 12.8% to €18.4bn, and the consolidation of Safaricom, VodafoneThree, and Telekom Romania, but was partially offset by adverse foreign exchange movements.

Despite these strong results, Vodafone reported a loss of €3.6bn, following a profit of €1.1bn in the previous year, due to “non-cash accounting charges”. These include an impairment in Germany, primarily driven by adverse interest rate changes, and a write-down of deferred tax assets in the UK following the buyout of CK Hutchinson Group from VodafoneThree.

Across the year, its interim dividend per share increased 2.5% year-on-year to 2.3 cents, in line with its progressive dividend policy.

Furthermore, Vodafone has seen revenue growth in all four key divisions, comprising Europe, Africa, B2B and Investments, each with their "own strengths, strategic priorities and growth drivers".

CEO at Vodafone, Margharita Della Valle, said that the telecoms firm has made a strong start to its new growth chapter.

She added: "This included our best-ever growth in Vodafone Business, with a record performance in digital services as we focus on smart, secure and sovereign solutions for our B2B and public sector customers.

"I am very happy about our overall group performance, but Germany is not yet where it needs to be. We have a clear action plan in progress, which is structurally simplifying our German operations and improving customer satisfaction across all of our services."

In its outlook, Vodafone upgraded its earnings guidance, and also expects its adjusted free cash flow to reach between €2.8bn and €3bn in the full year.

Restructuring and integration costs are expected to peak at €700m in the full year, including €400m related to the VodafoneThree merger.

Investment director at AJ Bell, Russ Mould, said its updated guidance is a "signal of the continuing recovery in the business" under Della Valle.

He concluded: "But problems in its core German market were static on the line for investors as it announced first-half results.

"The company is having its feet held to the fire by Xavier Niel, the French telecoms magnate, who has built a sizeable stake in Vodafone. It has responded by cutting jobs and simplifying processes in its German operations.

"Della Valle’s big decisions since taking over as CEO – including ditching its Italian and Spanish businesses and combining its UK operations with Three – have largely been vindicated. However, Niel’s presence on the shareholder register is likely to keep the pressure on, with the continuing struggles in Germany the next big hurdle to overcome."

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