The company reported organic service revenue growth of 0.3 percent in the first half, as it returned to growth in the second quarter thanks to improvements in South Africa, Spain and Italy and a solid retail performance in Germany.

Organic core earnings rose 1.4 percent in the half, and it said its growth rate would accelerate in the second half, enabling it to up its forecast for adjusted core earnings to 14.8-15.0 billion euro from its previous forecast of 13.8-14.2 billion euro.

But it tempered its forecast for free cash flow to “around” 5.4 billion euro, from “at least” 5.4 billion euros, as it said lower cash flows from India and the sale of New Zealand offset the initial accretion from its Liberty Global acquisition.

Chief Executive Nick Read said he was pleased with the speed the company which was executing his cunning plan.

“This is reflected in our return to top-line growth in the second quarter, which we expect to build upon in the second half of the year in both Europe and Africa”, he said.

Read cut Vodafone’s dividend for the first time in May after tough market conditions and a need to invest in its networks and airwaves caused him to backtrack on his pledge not to reduce the payout.

Shares in the firm have recovered 30 percent from since the dividend cut.