Global telecom giant Vodafone today reported 11.6 per cent drop in net profit at GBP 6.6 billion for the six months ended September 30, 2011, but increased its outlook for FY 2012 on the back of strong growth in emerging markets, including India and Turkey.

The group''s net profit stood at GBP 7.5 billion during the six months ended September 30, 2010.

Along with higher taxes in first half of 2011, the group also posted a GBP 450 million impairment loss in relation to Vodafone Greece, primarily because of lower projected cash flows within business plans and an increase in discount rates.

The group's revenue grew 4.05 per cent in H1 2011 to GBP 23.52 billion from GBP 22.60 billion in H1 2010.

"A year on from announcing our updated strategy, we are making clear progress. We are gaining share in most of our major markets, through our focus on superior network quality and an improved customer experience.
"In addition, we are achieving sustained growth in the key areas of data, emerging markets and enterprise," Vodafone Group Chief Executive Officer Vittorio Colao said in a statement.

Africa, Middle East and Asia Pacific (AMAP) service revenue was up 8.4 per cent, with strong performance in India and continued growth in Vodacom, Ghana and Qatar, it added. Revenues from India stood at GBP 2.11 billion for the six months ended September 2011.

Service revenue in India grew by 18.4 per cent, driven by a 25.5 per cent increase in the customer base, strong growth in incoming and outgoing voice minutes and 66.1 per cent growth in data revenue. Growth also benefited from operators starting to charge for SMS termination in Q2.

The margin, however, fell slightly in India despite strong top line growth as a result of rising commercial costs and the dilutive impact of SMS termination, it added.

Service revenue grew 7.3 per cent for Vodacom, while it increased 27.9 per cent in Turkey. In Europe, service revenue was down 1.3 per cent in H1.

The company has also upped its annual guidance on the back of the strong performance in these markets. From a guidance of GBP 11 billion to 11.8 billion indicated earlier this year, Vodafone now expects the adjusted operating profit to be in the range of GBP 11.4 billion to 11.8 billion.

"Progress against our strategic and financial objectives in the first half of the financial year has been good.

Although the macroeconomic outlook is uncertain, we are confident that we can continue to execute successfully in the second half of the financial year," the company said.

Vodafone expects free cash flow to be in the range of GBP 6-6.5 billion, excluding GBP 2.8 billion dividend due from Verizon Wireless in January 2012.