Vodafone’s group revenues increased by 1.8% to €11.3bn ($11.6bn) vs. €11.1bn ($11.4bn) one year ago, with a service revenue growth of 2.5% in the quarter ended June. Service revenues in the rest of the European region weighed down the European telecom’s group revenue. However, it was more than offset by the 6.5% jump in service revenue in the UK businesses due to increased prices and a rebounding demand for holiday roaming amid relaxing Covid-19 restrictions. In its statement, Vodafone said that it was on track to attain its target EBITDA of €15.0-15.5bn ($15.4-15.9bn) and adjusted free cash flow of approximately €5.3bn ($5.43bn). However, Nick Read, the Group CEO warned that in light of increasing energy costs, “the company would have to spend an extra €100mn to hedge energy costs for the full year, on top of €200mn that it announced in May”.

Vodafone’s 5% 2038s were trading lower at 98 cents to the dollar, down by 0.88 points to yield 5.17%.

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