Vodafone Group today raised forecasts for full-year operating profit, sales and cashflow after a solid set of half-year results.
Vodafone, the world's largest cell phone group by revenue, nudged up its forecast range for adjusted operating profit to £9.5 billion to £9.9 billion on revenues of £34.5 billion to £35.1 billion.
Pressure had grown on Vodafone to upgrade forecasts after Spanish-based Telefonica triggered a re-rating of the entire sector with an upbeat four-year outlook and France Telecom raised its 2007 cash-generation and margin targets last month.
Vodafone's shares climbed as much as 4 per cent higher. The stock, which hit 52-week highs of almost 197 pence last month, cut gains to stand 2.6 per cent stronger at 186.7 pence earlier today.
Vodafone had previously predicted that revenues in the year to March 2008 would come to £33.3 billion to £34.1 billion, with operating profit of £9.3 billion to £9.8 billion and free cashflow of £4 billion to £4.5 billion.
It posted first-half earnings before interest, tax, depreciation and amortisation of £6.565 billion and operating profit of £5.2 billion on revenues of £17 billion, Vodafone also raised the dividend by 6 per cent to 2.49 pence.