Service revenue declines in three out of four big markets
Interim CEO says Q3 was a low point, sees improvement ahead
Della Valle no comment on permanent appointment process
Shares fall 2

LONDON, Feb 1 Reuters Vodafone reported a steeperthan expected slowdown in its third quarter, the first under interim boss Margherita Della Valle, after service revenue in Spain slumped and there was a further deterioration in Germany, its biggest market.

The mobile and broadband operator reported group service revenue growth of 1.8 in the third quarter, down from 2.5 in the second and missing market expectations.

Hyperinflation in Turkey helped that figure, Della Valle said. Without it, service revenue in Europe fell 1.1.

Declining service revenue in three of our four largest European markets is simply not good enough and I know we are capable of doing better, she told reporters on Wednesday.

The quarter was expected to be a low point for Europe, she said, and there would be a gradual improvement from now on.

Shares in Vodafone fell 2.6 in morning trading, as analysts said there was no substantive strategy update from the interim boss, who has been in the job for less than two months.

Della Valle, who stepped up after Nick Read resigned in December, kept the fullyear forecast unchanged.

She said she39;d already taken action to simplify the group39;s structure to give local markets full autonomy.

Around 500 jobs were being cut in Vodafone39;s head office in this process,…