On track Voda lose £3.3bn

This week saw Vodafone report half-yearly losses of £3.3bn due to "competitive pressures", yet are on track to meet key targets for the full year.

A spokesman said: ‘The carrying value of goodwill of the Group’s operations in Germany and Italy, with each representing a reportable segment, has been impaired following a test for impairment triggered by an increase in long term interest rates and increased price competition in the German market along with continued regulatory pressures.’

Despite what seems like a huge dent in Voda’s figures, the network actually grew revenue 4.1% over the same six months to £15.6bn from 14.5bn pounds a year ago.

Sales and profits did decline in Germany, Italy, and the UK, but the operator benefited from strong performances in Spain and the US. During the last quarter, Vodafone also added an extra 7.1 million customers, boosting its total worldwide customer base to 191.5 million.

Voda CEO Arun Sarin said: "Competitive and regulatory pressures in the European region have been offset by strong performances in our developing markets and the United States. We have also made good progress since May in the execution of our new strategy and the response to our new products and services has been very encouraging."

Vodafone is hoping to stimulate sales in its saturated markets by driving fixed-to-mobile substitution with better value mobile bundles. It is also offering customers a fixed-line broadband connection as part of their mobile package in the UK, Italy and Germany.