Vodafone Group Plc, the world's largest mobile phone operator by revenue, raised its outlook on Thursday after posting third-quarter revenue ahead of forecasts due to cost cuts and an improving picture in Europe. Analysts said the improved trading in Europe and particularly the turnaround in Turkey should boost sentiment after fears the recent revenue weakness was more structural than cyclical.
Vodafone was the first major European telecoms carrier to report in this quarter and the news sent its shares up 4 percent at 139.8 pence at 0945 GMT, to top the FTSE gainers' list. "Vodafone results can often feel like a game of dodgems," Bernstein analyst Robin Bienenstock said.
"There are bright spots, but these are often overshadowed by some peripheral business blowing up (for example Turkey) or huge currency swings that muddy the waters. "This set of results is free of torpedoes and brings signs of cyclical recovery."