Vodafone has predicted a £1.8 billion boost in annual revenues for the full year, which will be boosted by the weakness of the pound.

Overall turnover for the company's third quarter £10.47 billion in the third quarter, to December 31, but the 15 per cent boost was almost entirely due to the strength of foreign currencies against the pound.

Vodafone does not release profit figures in the third quarter, but the company lifted previously-reduced guidance for its full year to take account of the weak pound. It now expects revenues of £40.6 billion to £41.5 billion — up £1.8 billion — and adjusted operating profit to be between £11.5 billion and £12 billion, an improvement of £500 million.

Stripping out the beneficial impact of currencies, turnover for the third quarter was up a more modest 1.4 per cent. However, it would have been down by 1 per cent, had it not been for the inclusion of recently acquired businesses in India.

Vodafone India added 2.1 million customers a month, an average of 70,000 a day, and continuing revenues in India, excluding handset sales, were 29.6 per cent ahead.

The British mobile phone company now has 60.9 million Indian customers, but only three in ten of all Indians have a mobile, demonstrating the long term growth possibilities for the company in the sub-continent.

Not all emerging markets showed similar progress, and Turkey suffered, with revenue tumbling 14.5 per cent in what is supposed to be a key growth country.

Cuts imposed by the local regulator, plus increased customer defections, prompted the problems, and Vodafone has introduced a new management team in the country.

Vodacom, the South African operator, in which Vodafone is in the process of increasing its stake from 50 per cent to 65 per cent, grew by 15.3 per cent on a constant currency basis as did Verizon Wireless in the US, in which Vodafone owns 45 per cent, and where revenues rose by 12.2 per cent.

However, it was the group's established European operations, which account for 70 per cent of turnover, that remained sluggish, with organic revenues easing by 1.4 per cent. Spain was particularly weak and the UK, where the company has 19.1 million customers, fell by 0.7 per cent. The fall in the UK was less steep than the previous quarter, as subscribers used the mobile internet more.

The company also warned that it would have to make job losses, as part of its already announced plans to slash £1 billion from its cost base by 2011. Vodafone said it would save half of that by March 2010, and is looking at head office, IT and back office costs as sources for its savings.

Cost savings have become necessary as the growth rate stalls, reflecting what the company said was a challenging economic environment.

Shares in Vodafone rose 3.39 per cent to 132.5p. Global customer numbers are now 288.9 million, up 9 million in the period.

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