Vodafone raises profit target after cutting 3,000 European jobs

Vodafone raised its full-year earnings and cash-flow targets after reporting higher first-half revenue and adjusted earnings, helped by the consolidation of Safaricom, Vodafone Three and Telekom Romania. The improved outlook comes as the group cuts costs and seeks to improve its performance in Germany, where it plans further job reductions.

The company cut 3,000 European roles between April and September, saving €200 million, and plans to remove another 2,300 jobs in Germany over two years. Group revenue rose 11.4 per cent to €21.9 billion and adjusted earnings increased 6.4 per cent to €6.45 billion, but Vodafone recorded a €3.6 billion statutory net loss, including a near €5 billion impairment in Germany. Its revised full-year targets are €13.2 billion to €13.4 billion in earnings before tax and €2.8 billion to €3 billion in cash flow.