Vodafone (VOD.L) has reported a 3.5 per cent rise in year-on-year revenue to £11.7 billion in its latest trading update.

The mobile telecommunications group warned of 'macroeconomic challenges' to its businesses in southern Europe, highlighting declines in service revenue in Italy and Spain.

However, the company pointed to growth in its Africa, Middle East and Asia Pacific business and in India.

The group also highlighted growth of 5.3 per cent in messaging revenue to to £1.3 billion, including a 6.9 per cent rise in Europe.

Vittorio Colao, chief executive of Vodafone, said, 'Revenue from our key focus areas of data, enterprise and emerging markets continues to grow strongly. With our broad geographical mix and improving market positions, we are well placed for the rest of the financial year.'

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