Investors sent shares in Vodafone (VOD) up 4 per cent after the mobile telecoms titan posted a 2 per cent increase in organic cash profits for the six months to 30 September after years of declines. However, adjusted operating profits still slid 7 per cent to £1.64bn as network investments drove up depreciation and amortisation costs, offsetting the improved organic performance.
Vodafone, which has 454m mobile customers and operations in more than 20 countries, has faced mounting competitive pressures. Industry giant BT looks set to acquire EE - the UK's largest mobile carrier - while rivals Three and O2 are keen to tie the knot. Moreover, pay-TV and broadband giant Sky plans to roll out a mobile service in 2016. Vodafone is banking on Project Spring, its two-year investment programme, to bolster its competitive edge. The initiative has seen the group expand its high-speed '4G' wireless coverage, modernise and extend its mobile and fibre networks, roll out enterprise offerings internationally and spruce up its stores.