Much of the blame was directed at economic difficulties in Europe. The German market, Vodafone’s largest, dropped 5.1 percent. In the UK revenues fell 4.5 percent. Overall service revenues for Europe declined 14.4 percent – with a serious 10.6 percent and 17.6 percent drop in Spain and Italy respectively.
Chief executive acknowledged blamed weak economies in Southern Europe for restricting revenue growth as well as “regulation” and competitive pressure.
Vodafone last month bought Kabel Deutschland for €7.7 billion – hoping to bolster its position in that market and offer other services like broadband and TV.
Telco analysts at IHS pointed out the Q2 results were at least slightly better than the 4.2 percent decline it suffered in Q4 2012. But it stamped on hopes for growth that emerged the same time last year, where it grew one percent year on year.
Vodafone performed comparably well in India and there is steady sales and subscription growth across the African continent, with Egypt in particular surviving the storm despite ongoing intense political turmoil.