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Vodafone raises free cash flow guidance after good first half -Breaking

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© Reuters. FILEPHOTO: Vodafone’s logo was seen during the Mobile World Congress held in Barcelona (Spain), February 28, 2018. REUTERS/Sergio Perez

LONDON (Reuters), -Mobile operator Vodafone (NASDAQ;) increased its projection for next year’s free cash flow Tuesday, after recording 6.5% growth in core earnings. The company reported a positive performance in Germany, which is the largest market, and it also announced 6.5% growth in core earnings.

British company increased the ceiling of full-year earnings guidance by 15.2 billion euro from 15.0 million euros. Top remains at 15.4 billion. Free cash flow targets were also raised to at minimum 5.3 billion euros (from 5.2 billion).

Nick Read, Chief Executive Officer said that the results showed “solid commercial momentum.”

His statement was: “Our stronger performance in Africa/Europe puts us on the track to be near the top end our guidance for this years, as well firmly within [our medium-term financial goals],”

Vodafone claimed that total revenue rose 5% to 22.5billion euros during the six month period ending September. The growth was due to increased service revenues in Europe and Africa as well as a rebound in handset sales in response to the COVID-19 interruption in 2011.

Core earnings adjusted came in at 7.6 Billion Euros, growth being boosted with a 0.7-point increase.

The results will be interpreted by analysts as a chance to adjust forecasts. A consensus compiled by the company showed that they had predicted Vodafone would report profits of 15.2 billion euro this year, and cash flow of 5.23 trillion euros.

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