India, South Africa and Turkey Boost Vodafone's 1Q

With operations in Spain and Italy struggling, Vodafone's sales found support in emerging markets

Allan C. Nichols, CFA 25 July, 2011 | 10:50AM
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Vodafone's (VOD) fiscal first-quarter sales were generally in line with our expectations.

It was no surprise that operations in Italy and especially Spain are struggling, with euro-denominated revenue declines of 1.5% and 9.9%, respectively, versus the previous year. The reverse occurred in Turkey, where the firm lost 133,000 customers, but service revenues jumped 32.1% due to a mix shift to more higher paying contract customers.

In Vodafone's Africa, Middle East, and Asia-Pacific region, India and South Africa remain the main growth drivers. Vodafone added 6.9 million customers in India during the quarter, taking its total to 141.5 million. We expect India and South Africa to remain Vodafone's main growth drivers.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Vodafone Group PLC72.12 GBX0.75Rating

About Author

Allan C. Nichols, CFA  is a senior stock analyst and international investing specialist with Morningstar.

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