LONDON: Vodafone, the European and African mobile operator, forecast earnings growth for the current year below market expectations on Tuesday, saying it hoped to deliver a resilient performance against a difficult economic backdrop.

The British-listed mobile operator reported a 5% rise in its 2022 financial year core earnings, meeting the bottom of its guidance.

Vodafone, which was backed by a $4.4 billion investment from the UAE-based telecoms company e& in recent days, said it expected to deliver a resilient financial performance in the year ahead.

It reported adjusted core earnings of 15.21 billion euros, within its range but short of market expectations of 15.28 billion euros, on group revenue of 45.58 billion euros, up 4%.

Chief Executive Nick Read said he was focused on improving the group’s performance in Germany, pursing opportunities for Vantage Towers, the infrastructure business it spun out last year, and “strengthening its markets positions in Europe”.

In February, Read said Vodafone was pursuing mergers with rivals in multiple European markets, notable Spain, Italy, Britain and Portugal.

The company issued broad guidance for the current financial year, with a range for adjusted core earnings of 15.0 - 15.5 billion euros, below the average the market currently expects of 15.57 billion euros.

Vodafone shares jump 4% after UAE group buys 9.8% stake

Adjusted free cash flow was expected to be around 5.3 billion euros, it said, down on 5.4 billion euros reported on Tuesday.