Vodafone reported a trading update for its fiscal first-quarter on Monday, which saw increased revenue growth but a drop in its biggest market Germany in the first quarter.

The mobile and broadband company reported service revenue growth accelerated by 2.5% quarter-on-quarter to €9.5 billion. This was aided by a 35.8% increase in Turkey, which saw higher inflation boost revenue. 

However, German service revenue, the company’s biggest market, declined 0.5% to €2.9 billion after the new Telecommunications Act’s impact. 

Europe’s growth was supported by growth acceleration in the UK. As a result, the company states they are on track to deliver its full-year targets.

Furthermore, growth in Africa was backed by data revenue and financial services growth, as its M-Pesa customer base grew by almost 50 million in the quarter.

“We have executed in line with our expectations, delivered another quarter of growth in both Europe and Africa, and seen an acceleration in business growth,” said Nick Read, Group Chief Executive.

Read also stated that the company is not “immune to the current macroeconomic challenges” but is on track to be in line with guidance.

The company reported that FY23 adjusted EBITDA is expected to be between €15 billion and €15.5 billion.

Vodafone shares were unchanged this morning following its Q1 report. However, the stock is up almost 16% this year despite the negative sentiment across the global market.