Key highlights:

• Group: Revenue £10,743 million, up 9.3%
• Organic service revenue down 2.1%
• Group data revenue of £888 million, up 19.4% on an organic basis
• Free cash flow of £1,896 million, up 21.2%; net debt at 30 June 2009 of £31.2 billion
• First quarter EBITDA margin trends consistent with management’s full year expectations
• Cost reduction programme on track
• Proportionate mobile customer base of 315.3 million; 8.0 million net additions during the quarter
• Europe: Service revenue up 4.4% driven by foreign exchange
• Organic service revenue down 4.4% reflecting economy and mobile termination rates
• Organic data revenue up 17.8%
• Organic fixed line revenue up 5.7%; Spain up 15.4%; Italy up 18.5%
• Africa and Central Europe: Service revenue up 26.3% including Vodacom acquisition
• Organic service revenue down 2.6%
• Vodacom organic growth of 5.2% offset by weakness in Central Europe
• Asia Pacific and Middle East: Service revenue up 21.8%
• Organic service revenue up 14.3%
• India service revenue growth of 23.0%⁽¹⁾
• Verizon Wireless: Net mobile customer additions of 1.1 million
• Full year outlook: May guidance confirmed⁽²⁾

Vittorio Colao, Chief Executive, commented:

“In the first quarter the service revenue trend in Europe was consistent with the previous quarter and we continued to see good growth in India and South Africa. Our total communications strategy is delivering well, with organic data revenue up 19% and organic fixed line revenue 7% ahead of the comparative period. Free cash flow generation was strong at £1.9 billion, up 21%. The Group has reaffirmed its guidance for the full year.”

Notes:
(1) At constant exchange rates.
(2) Includes assumptions of foreign exchange rates for the 2010 financial year of approximately £1:€1.12 and £1:US$1.50.

Download the full announcement (PDF 104 Kb)

For further information:

Investor Relations
Telephone: +44 (0)1635 664447 
Facsimile: +44 (0)1635 682890

Media Relations
Telephone: +44 (0) 1635 664444
Facsimile: +44 (0) 1635 686007