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Vodafone sales fall for first time in seven years

The mobile phone giant reported its first drop in annual revenues for seven years. Credit: PA

Newbury-based mobile phone giant Vodafone has reported its first drop in annual revenues for seven years.

Sales of £44.4 billion for the year to March 31 were 4.2% lower than a year ago, despite the firm benefiting from stronger trading in emerging markets and increased smartphone usage.

Vodafone's service revenues in southern Europe slumped 11.6% in the year, driven by economic weakness and competition in Spain and Italy, while the figure in the UK was 4% lower.

It described trading in its home market as robust and said the decline was in part due to the impact of regulatory cuts in the charges it sets other operators for terminating calls on its network.

The company gave no update on the future of its 45% stake in US operator Verizon Wireless, amid recent speculation that the firm's majority owner Verizon is preparing a deal to buy the holding.

Vodafone's share of profits from the US business rose 30% to £6.4 billion and it is due to receive a Verizon dividend of £2.1 billion next month.

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