The world's second biggest mobile operator reported earnings before interest, tax, depreciation and amortization of 7.9 billion euros, beating a 7.8 billion euro consensus forecast. Service revenue was up 2.4 percent in the second-quarter, unexpectedly ahead of the 2.2 percent recorded in the first quarter and ahead of what analysts thought.

Vodafone slightly lowered the top of its range for full-year earnings to 15.7 to 16.1 billion euro. The top limit was previously 16.2 billion euro. 

Chief Executive Vittorio Colao said the improvement in Europe was "modestly ahead" of expectations, led by Germany and Italy, and the group had executed its strategy well in emerging markets, although competition in India had increased.

"We expect to sustain our underlying performance in the second half of the year and remain on track to meet our full-year objectives despite macroeconomic uncertainties," he said.