UK mobile operator Vodafone (VOD.US) reported a 2.8% increase in total revenue to €9bn in the first quarter of FY2025, with organic service revenues up partially offset by unfavourable foreign exchange movements.

Group service revenues grew 5.4%, with strong performances in Turkey and Africa. However, Germany's service revenues were down due to legal changes related to the transition to multi-unit dwellings (MUDs).

Germany's organic service revenues were down 1.3% in the first quarter, from 2.8% in the previous quarter. Germany accounts for about 37% of group service revenues.

In Vodafone's second largest market, the UK, organic service revenues grew 5.7% in the first quarter, up from 3.8% in the previous quarter.

Vodafone Group CEO Margherita Della Valle said: "We continue to progress on our transaction in Italy and the UK, and Vodafone's broader transformation, focused on customer experience, business growth and execution in Germany."

Vodafone maintained its FY2025 performance guidance, expecting adjusted EBITDAaL of €13.3bn and adjusted free cash flow of at least €2.4bn.

It was reported that Vodafone recently sold a 10% stake in Vantage Towers, a UK-based telecoms company, for €1.3bn (about $1.4bn), as the company seeks to reduce its debt. The sale is part of the divestment of Vodafone's tower arm announced in November 2022.

At the time of writing, Vodafone shares were down 0.77% at $8.99.