Vodafone expects profits to be boosted by weak pound

Today Vodafone increased its full-year revenue forecast up to a possible £41.5bn after the weaker pound boosted the value of its overseas sales.

Nick Raynor, investment adviser at The Share Centre explains why Vodafone remains a good investment opportunity: "Vodafone continues to be a favourite of The Share Centre. In fact, it was our customer share tip for last Friday. Investors who purchased Vodafone shares over the weekend, ahead of the announcement, could have made an increase of almost 9%.

"Shareholders should be happy that Vodafone's relatively new overseas ventures appear to be very lucrative. Despite a decline in revenues from Spain and Turkey, Vodafone enjoyed increased service revenue in India and strong sales by its South African operator, Vodacom.

"Those investors still looking to buy Vodafone shares should consider gradually investing their money into the market. This investment strategy, known as drip-feeding, can help to reduce the risk of buying overpriced shares and help to smooth out market fluctuations, as the investor will benefit from pound-cost averaging (a fixed contribution each month will result in more shares being purchased at low market prices than at high prices)."