Vodafone Group PLC (LON:VOD) has narrowed its annual income guidance after the UK-based company flagged that rising consumer prices and higher energy costs weighed on its half-year performance.

The telecommunications company said it now expects to report adjusted EBIDTA (earnings before interest, tax, depreciation and amortization) after a lease of €15.0 – €15.2 billion (€1 = USD 1.039) in its 2023 financial year. It had previously estimated that the figure would register between €15.0 – €15.5B. Adjusted free cash flow is at around €5.1B, down from €5.3B.

The company said that the global macroeconomic climate had worsened lately, with energy costs and inflation impacting its financial performance.

However, Chief Executive Officer Nick Read said the company is working towards mitigating these broader economic headwinds through price hikes across Europe and energy expense reductions.

In the half year that ended on September 30, adjusted core profit dipped by 2.6 per cent Y-o-Y to €7.2B, missing analysts’ expectations of €7.5B. A 2 per cent growth in total revenue, caused by elevated equipment sales, was offset by higher prior-year comparables in Italy and weak performance in Germany.