Vodafone profits drop despite German growth

A drop in first-half profits at Vodafone (LSE: VOD) was offset by expanding services in Germany, prompting shares in the telecoms giant to dip slightly on Tuesday morning.

The mobile operator saw pretax profit tumble to €550 million in the six months to September 30, down from €1.69 billion last year. Overall revenue also declined 4.3% to €21.94 billion.

However, Vodafone reported a standout performance in Germany, where service revenue grew 1.1% year-on-year in the second quarter.

CEO Margherita Della Valle said the company’s increased focus on customers and streamlining operations “is beginning to bear fruit.”

On Monday, Vodafone announced a new joint venture with Accenture to bolster shared services.

Vodafone shares edged down 1.0% on Tuesday but remain down 11.7% since January. The stock has plunged 27% over the past year.