The pain's from Spain, says Vodafone

The mobile phone giant posted first-quarter revenue in line with forecasts at £9.8 billion but said its full-year revenue was likely to be around the bottom of its previously forecast range of £39.8 billion to £40.7 billion.

The world's largest mobile phone company by revenue suffered from weak trading in Western Europe, as well as lower than expected sales of equipment such as handsets and USB data cards in the three months to 30 June.

These will be the final figures for Chief Executive Arun Sarin who steps down on 29 July after five years in charge and will be replaced by his deputy Vittorio Colao.

According to the group, economic and competitive effects particularly impacted Spain. Sarin added that the British mobile phone group had been hit by the decrease in economic migrants who had been working in Spain, often in the construction industry.