Growing consumer demand for social networking sites and sports clips on the move have helped Vodafone to thrive in increasingly fierce mobile markets, it emerged yesterday, as the group increased its full-year revenue and profit forecasts.

Increasing use of the internet on mobiles led to a surge of nearly 50 per cent in the more lucrative data revenues at the mobile giant, to £1 billion in the first half.

The trend, combined with a strong performance in the group’s emerging markets such as India, sent Vodafone’s overall revenues up 9 per cent to a better-than-expected £17 billion. The group’s shares closed up nearly 8 per cent at 195.7p.

Full-year revenues are expected to hit between £34.5 billion and £35.1 billion , against a previous range of between £33.3 billion and £34.1 billion. Operating profit is expected to be in the range of £9.5 billion to £9.9 billion, up from £9.3 billion to £9.8 billion.

Vodafone and Britain’s other main mobile operators splashed out £22.5 billion on licences to operate “next-generation” 3G licences in 2000. The technology was supposed to transform mobile handsets into mobile computers, generating a lucrative uplift in revenues.

Consumers had appeared resolutely uninterested in the technology, with calls and texts still making up the bulk of mobile revenues. Better technology, more user-friendly handsets and the entry into the market of big brands such as Apple has stimulated more interest of late.

Arun Sarin, Vodafone’s chief executive, said that mobile data was “now a permanaent phenomenon”. The number of registered 3G devices had nearly doubled from a year ago, from 11.1 million to 21.4 million.

Analysts at Bear Stearns said that the 41 per cent jump in data growth was “clearly positive”. Citigroup noted that data revenues now account for 7.3 per cent of the group’s total Western European revenues.

Analysts said that the group’s strong overall performance in the six months to the end of September should finally draw a line under sniping about the competence of Mr Sarin.

Last year Vodafone suffered one of the most turbulent periods in its history when investor discontent about the group’s flagging share price and an alleged inability of Mr Sarin to overcome the challenges facing the business triggered a boardroom revolt, which culminated in investors holding 15 per cent of the shares failing to back the chief executive at the group’s annual meeting in summer 2006.

Since then, the group has instigated a radical board shake-up.

Mr Sarin has also introduced a strategy including a move beyond providing pure mobile services to “converged” fixed-line and mobile products and moved to strip out costs through areas such as network-sharing and IT outsourcing.

Adam Steiner, head of research at SVG Capital, said: “This totally vindicates Sarin’s strategy. A couple more of these results and he can leave a hero.”

Operating profit in the half-year increased 1.6 per cent to £5.2 billion, while the group’s total customer base jumped to 241 million.

Mr Sarin confirmed that he was looking at acquisition opportunities in Asia, Africa and Central and Eastern Europe. An update on Vodafone’s bid to increase its 50 per cent stake in its South African joint venture Vodacom was likely, he said, “in a couple of months”.

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