Vodafone Germany CEO Expects Reversal of Downward Revenue Trend

DUESSELDORF -(Dow Jones)- Telecommunications company Vodafone Germany expects the current sales trend to reverse and for sales to start growing, the chief executive said Tuesday.

Chief Executive Friedrich Joussen said although revenue fell slightly in the second quarter,"due mainly to regulatory causes," "it won't be long until we see growth again," he said.

Vodafone Germany is a subsidiary of mobile operator Vodafone Group.

Joussen said Vodafone Group's warning earlier Tuesday that full-year sales will be at the lower end of its previous forecast was mainly due to the economic downturn in Spain.

He doesn't expect the German market to have the same trouble because out there is no real estate bubble in Germany, the unemployment rate is relatively low and wages are generally increasing.

At the same time however, the rising cost of living will affect the market for expensive consumer goods - including top-quality mobile phones, he added. Joussen is less concerned about the impact on mobile phone usage.

The CEO was reserved when it came to talking about a potential purchase of freenet's DSL business. "We are taking a very close look at it," he said, adding that a purchase couldn't be ruled out. Vodafone Germany doesn't necessarily need acquisitions it as organic growth is strong, Joussen said.

-By Richard Breum, Dow Jones Newswires, +49 69 29 725 500, richard.breum@dowjones.com

(END) Dow Jones Newswires

Posted to the site on 22nd July 2008