Vodafone has said its total revenue shrank by over two per cent in its third quarter due to contractions in Italy and Spain and sluggish growth in Germany, its biggest market.
In an update to markets, the telecoms giant reported a 2.3 per cent drop in revenue to €11.37bn (£9.7bn) over the third quarter, down from €11.63bn (39.9bn) in the same period last year.
Service revenue growth in Italy and Spain declined by 1.3 and 1.1 per cent, respectively, while Germany only grew by 0.3 per cent, following a strong second quarter.
Consumer and business segments in the UK helped it to grow by 5.2 per cent, after 5.5 per cent last quarter, as lower revenue from fixed broadband dragged it back.
Vodafone’s other European markets, its African business, plus cloud and internet of things (IoT) services all performed well. These digital services grew over 20 per cent, thanks to increased customers and price increases.
Group boss Margherita Della Valle is trying to shift the firm’s momentum by offloading underperforming units and emboldening those showing signs of life.
She sold off the Spanish division last October, is trying to merge the UK arm with other British telco Three and, last week, spurned an offer for the Italian outfit.
The telecoms boss said the “transactions in the UK and Spain are progressing well, and we are in active discussions in Italy.
“We’ve also begun strategic partnerships with Microsoft and Accenture to fast-track our transformation.”
Vodafone shares have tumbled 24.3 per cent over the past year.
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