Vodafone reported declines in its earnings for the full-year of 2016 but has experienced gains in revenue in the European market during the fourth quarter of 2016, for the first time in five years.
The communication provider’s full-year 2016 sales in the UK fell by 3.5 per cent to £6.2 billion, while its fourth quarter sales in Europe increased by 0.5 per cent to £6.3 billion, due to an upturn in Germany and Italy, the firm’s two largest markets.
Overall revenue in Europe decreased by 4.4 per cent to £24.4m for the the full-year and its group revenue lagged by 3 per cent to £41bn during the same period.
The company’s three-year £20bn Project Spring, with 4G infrastructure, has been completed now covering 87 per cent of its European business, but has yet to make a significant impact on its earnings.
Last year, the company underwent a "complex migration" that led to overcharging customers in the UK. The company said the issue has been resolved.
"There is no doubt there is positive movement in Europe, with the business emerging from a difficult time,” said Kester Mann, analyst at CCS Insights. “In the UK, Vodafone has more challenges. It is looking to move into multiplay space and a broadband proposition.
"However, the uptake has been limited so far with only 38,000 broadband customers. There is a lot of competition in the UK market and the wider market."