Recovery in Europe sees Vodafone report its sixth consecutive quarter of growth

As Vodafone reports a Q3 trading update, Ian Forrest, investment research analyst at The Share Centre, explains what it means for investors. “Vodafone’s third quarter results today were reassuring for investors and they confirmed the improvement in its European markets seen earlier in the year. Overall revenues rose 2.6% to £10.3bn on an organic basis and the group picked out positive trends in Germany, Italy and South Africa as especially noteworthy. The use of data continues to grow and 4G services are now available across 84% of Europe.

“We continue to recommend the shares as a buy as the group generates a large amount of cash from its operations and the healthy dividend is appealing to income seekers, especially those looking for a lower level of risk. Interested investors should note that Vodafone retains a significant portion of the proceeds from the sale of its Verizon stake and will need to use that to compete with peers who are offering the “quad-play” of services (fixed line telephone, TV, broadband and mobile).”