Vodafone Europe’s mobile service revenue growth worsened to -0.6% from -0.2% in the previous quarter, the first deterioration following at least nine quarters of consecutive improvement, with the UK particularly weak

The company could nonetheless grow profits handsomely if revenue growth stabilises at this level, with more clarity on the medium term prospects for this likely to come with next quarter’s results and guidance for 2017/18

Our main concern continues to be the company’s declining subscriber share, particularly in consolidating markets where its historic advantages of having high market share may be rapidly eroded

The Bank of England predicts a mild decline of real household consumption growth to 2% in 2017, as higher inflation chews at disposable income

City forecasters are more circumspect on consumption growth, and we agree that households are likely to display more caution on expenditure relating to non-essentials

Retail sales, a bellwether for advertisers, look subdued in the New Year, and we maintain our forecast of flat advertising expenditure growth in 2017