- Vodafone Group said revenue fell in the first quarter but the telecom stuck to its annual earnings guidance.

In the three months through June, revenue dropped 4.9%, owing to foreign exchange movements and the adoption of new accounting standards, the company said.

Organic sales revenue growth slowed to 0.3%, with a 1.3% decline in Europe offset by 7.0% growth in Africa, the Middle East and Asia Pacific.

India declined by 22.3%, partly due to price competition, but was down only 1.4% compared to the fourth quarter.

Vodafone stuck to its annual guidance for underlying organic adjusted Ebitda growth of 1-5%, and free cash flow pre-spectrum of at least €5.2bn.

'The group's organic service revenue growth slowed during the first quarter, in line with expectations,' chief executive Vittorio Colao said.

'The majority of our operations performed well, with ongoing momentum in Germany, further underlying recovery in the UK and continued good growth in AMAP, all of which helped to offset increased competition in Italy and Spain.'

Colao said Vodafone's commercial performance was solid, marked by further broadband market share gains in Europe.

'In India, where competition remains intense, we have now received conditional approval from the Department of Telecoms for the merger of Vodafone India and Idea Cellular, which we aim to close before the end of August, allowing us to unlock substantial synergies.'

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