Weak pound helps Vodafone results

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Mobile phone operator Vodafone has raised its forecast for full-year revenues as the weaker pound has made its overseas sales more valuable.

The firm cut its forecast twice last year to reflect rising raw materials prices and increasing competition.

Vodafone reported revenue of �10.47bn for the last three months of 2008, up 14.3% on the same period last year.

It is predicting full-year revenue of �40.6bn-�41.5bn, up from its previous range of �38.8bn-�39.7bn.

Three months ago, Vodafone announced plans to cut costs by �1bn by March 2011, and it has said it is making good progress with that programme.

'Deteriorating market'

The company does not publish a pre-tax profit figure for the third quarter.

In the UK, Vodafone's revenue from voice calls on pre-paid tariffs declined, but it made more money from mobile internet services.

The decline in revenue from Spain accelerated, with Vodafone blaming a "deteriorating market environment", leading to "increased involuntary churn", which means it had to cut off more customers who had not paid their bills.

It has been forced to introduce new tariffs and promotions to increase the use of its services in Spain, but the average price per minute fell.

Service revenue in India grew 37.3% in the three-month period, which was still slower than the previous quarter. Vodafone said the market had become increasingly competitive.

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