Vodafone Group has announced a robust set of results for the six months to 30 September 2010, increasing its forecast for the full year on the back of renewed service revenue growth in its core businesses and a strong performance from Verizon Wireless.

For the six months, the company reported a profit of £7.5 billion, up 56.5 percent from £4.8 billion in the prior-year period, on revenue of £22.6 billion, up 3.9 percent from £21.76 billion. Group service revenue was £21.23 billion, up 3.7 percent, with growth in Africa and Central Europe and Asia Pacific and the Middle East offsetting declines in Vodafone’s core European markets, where the impact of mobile termination rate cuts took their toll. For the full year, the company is now forecasting adjusted operating profit of £11.8 billion–£12.2 billion, up from £11.2 billion–£12.0 billion.

Vittorio Colao, Group CEO, noted that the company’s emerging market strategy has evolved, from expansion to realising the benefits of its holdings, trumpeting the company’s “solid number two position” in India based on share of revenue, its number one position in South Africa using the same metric, and highlighting a “profit building” phase in Turkey. As expected, the company is looking to mobile data to power its growth, noting that revenue from its data services is nearing the total recorded from mobile messaging. It has also said it is looking for “selective expansion in growth segments” of its enterprise business.

As anticipated, Vodafone updated on the management of its non-controlled assets, with Colao stating that the intention is to shift the focus from creating “a stronger Vodafone, to a more valuable Vodafone.” He noted that while in terms of proportionate share of free cash flow, Vodafone’s stake in its non-controlled businesses was worth around £5 billion, the company received only £1 billion in payments, primarily from SFR and Verizon. During September 2010, the Group sold its interest in China Mobile for £4.3 billion before tax, and the company also said that it has announced a deal to “accelerate” the sale of its stake in SoftBank, gained when this company acquired Vodafone Japan in 2006 – £3.1 billion will now be received in “two broadly equal instalments in December 2010 and April 2012.” As part of a corporate restructure, Colao and Andy Halford, Vodafone’s CFO, will take responsibility for maximising return from the affiliate businesses, including Verizon, SFR and Polkomtel, which may include some additional disposals.

The company also highlighted the broadened rollout of tiered mobile data pricing. Following an introduction in Italy next week, and with several markets already using tiered pricing, the operator expects this model to be the norm in all of its controlled markets by the end of the financial year. Colao noted that while data use is on the increase, its network utilisation rates are stable, as a result of continued investment in infrastructure. Halford noted that while one third of Vodafone’s subscribers are now using mobile data services, this still means that two thirds are not.