Telecommunications company Vodafone Group PLC reported a 15 per cent increase in first-half net profit. Results were boosted by favourable currency movements, lower taxes and expansion at its Verizon Wireless venture in the US.

For the six months ending Sept 30, Vodafone made a net profit of USD 7.6 billion, up from a year ago.

Group revenue from continuing operations, however, was down 3 per cent, the company said, while reported revenue -which accounts for businesses it has bought or sold - rose 9 per cent to 21.8 billion pounds.

The company did not break out results for the second quarter.

Vodafone shares were down 2.9 per cent at 134 pence in midmorning trading on the London Stock Exchange.

"Whilst the results have broadly met analysts' expectations, a continued dependency on cost cutting measures fails to truly inspire," said Keith Bowman, analyst at Hargreaves Lansdown Stockbrokers.

"Management looks to be doing well in controlling the levers it can to sustain performance in spite of the cyclical and structural issues," said Morten Singleton, analyst at Collins Stewart. "There was no good news in the top line, however, with the organic metrics showing deterioration on Q1." Singleton recommended selling the shares.