Annual cash outlook was increased by the world's largest mobile operator by sale, Vodafone Group PLC on Thursday after mentioning cost-cutting efforts, solid growth in emerging markets and progressing image in Europe.

Vodafone said that revenue grew 10% in its fiscal third quarter. This happened after data revenue pitched in middle of the increasing demand for smart phones and Europe's service revenue stabilized. For the third quarter that ended Dec. 31, group revenue mounted to £11.55 billion as compared with £10.47 billion previous year.

Chief Executive Vittorio Colao said in statement, "Service revenue trends have improved with continuing growth in our data and fixed-line revenue. We are on track to deliver on our strategic priorities in the current financial year".

Vodafone said, "Although revenue trends in Spain were "stable" but that trends in the U. K. and Germany were improving while Italy remains competitive. Company's £1 billion cost-reduction program is expected to be delivered a year ahead of plan and expanded by £1 billion by 2012. At the same time, company maintained capital investment at £2.6 billion in the first half".

Mr. Colaoalso added, "Consumers' growing interest in smart phones drove data revenues up nearly 18% to over £1 billion. Smartphones are 25% of our new sales and we expect that to go to between 30% and 40% in the next
12-18 months".