Mobile phone giant Vodafone said today it remained on track despite the economic storm buffeting its southern Europe markets.

The group posted revenues growth of 1.5% to £10.8b for the quarter to June 30, helped by continued strong trading in emerging markets such as India and Turkey and a resilient performance in the UK.

Revenues in its home market rose 1.7%, with growing demand for smartphones and data bundles offsetting a competitive market and an industry-wide cut in the rates that operators charge to handle other networks’ traffic.

However, economic pressures meant service revenues declined by nearly 10% in Spain and by 1.5% in Italy, while Vodafone also reported tough trading in Greece.

Chief executive Vittorio Colao said the company’s spread of markets and drive for more data revenues meant targets for the financial year remained in place.

He added: "We have made a good start to the year, reporting robust results despite challenging macroeconomic conditions across southern European economies and the impact of cuts to mobile termination rates."

Vodafone shares opened more than 1% higher following today’s trading update.