Weak European markets dent Vodafone

Still, another strong performance in the Africa, Middle East and Asia Pacific unit - where organic revenues climbed 5.8 per cent - helped partially offset a 14.9 per cent decline in southern Europe and 3.9 per cent decline in northern and central Europe. Management has also pledged to turn around the struggling operations in Vodafone's core European markets by boosting investment there from £6bn to £7bn by March 2016. Management will also press ahead with its Project Spring investment programme - which includes deepening 3G coverage in mature and emerging markets, while also accelerating the construction of super-fast 4G mobile networks across Europe.

But it's deal-doing - rather than the operational performance - that seems to have really grabbed investor's attention of late. Indeed, the group's shares have been buoyed by news in September that Vodafone will sell its 45 per cent stake in US operator Verizon Wireless for $130bn (£84bn) to Verizon Communications (VZ: NYSE). During the period Verizon Wireless paid a hefty $3.2bn dividend to Vodafone. And US telecoms giant AT&T (T: NYSE) - which is thought to want to gain a foothold in Europe - is now rumoured to be considering a bid for Vodafone. Any deal would probably have to wait until the sale of the Verizon stake has been completed early next year. Meanwhile, Vodafone's half-year figures included £17.7bn in new credits for tax assets - that's likely to bolster the group's attractions as a bid target.

Management confirmed full-year guidance - adjusted operating profit of around £5bn is expected with 11p a share dividend. Citigroup forecasts full-year pre-tax profit of £10.6bn, giving adjusted EPS of 15.7p (from £3.3bn and 15.6p in 2013).