VODAFONE Group Plc, the world's biggest mobile phone company by sales, said third-quarter revenue from wireless services rose 4.2 percent, beating analyst estimates on growth in India and Turkey.
Growth in the quarter ended December 31 decelerated from 4.8 percent a year earlier. The England-based company was predicted to have a service revenue gain of 3.6 percent, the median estimate of five analysts in a Bloomberg News survey.
Service revenue includes voice, data, messaging and broadband sales. It excludes sales of handsets and accessories.
Chief Executive Officer Arun Sarin said Vodafone achieved "modest" revenue gains in Europe by offsetting 15 percent to 20 percent price declines with sales of wireless Internet and e-mail services. Vodafone was also helped by new customers in Turkey and India, Sarin said.
"It's clear that data will stimulate growth opportunities in Europe over the next two years," London-based Bear Stearns analyst Maurice Patrick, who rates the company "peer perform," said. "The company is clearly looking for growth in emerging markets."
In May, the company bought a controlling stake in Hutchison Essar Ltd, now India's third-largest wireless operator, for US$10.7 billion.
Sales in the period jumped 16 percent to 9.2 billion pounds (US$18.3 billion), Vodafone said. Service revenue rose 4.2 percent to 8.39 billion pounds from 7.23 billion pounds.
Vodafone fell 3.2 pence, or 1.8 percent, to 173.7 pence in London trading. The stock climbed 33 percent last year and was the second-best performer after Spain's Telefonica SA in the Bloomberg Europe Telecommunication Services Index.
Vodafone added 10.8 million new customers, more than the median estimate of 9.22 million from a Bloomberg News survey. The company said it had 252 million clients at the end of the period. Vodafone's service revenue growth in Europe decelerated to two percent from 2.1 percent a year earlier. That compares with an increase of 1.8 percent, the median from a Bloomberg News survey of seven estimates.
In Europe, voice revenue for the quarter dropped 2.2 percent, the company said. Overall company data revenue rose 52 percent, excluding acquisitions. Including purchases, data revenue gained 42 percent, the company said.