Vodafone, Ireland's biggest mobile operator, saw service revenue rise 2.8 per cent in the first quarter to €242 million.

The company said the rise was driven by growth in its fixed-line business and in the number of mobile customers shifting to contracts.

Mobile customers on contract grew by 11,000 during the quarter and by 35,000 over the same period last year. Broadband subscriptions rose 10.7 per cent year-on-year to 247,000.

Overall, the company said it had 2.2 million customers across, mobile, broadband and TV.

“We continue to see positive returns on our ongoing investment in Ireland. Our mobile customers have access to the fastest and most reliable network in the country, with people across the country now taking full advantage of Vodafone’s market-leading 4G offering, following the completion of our national network upgrade earlier this year,” said Vodafone Ireland chief executive Anne O’Leary.

The unit’s parent meanwhile reported a better-than-expected 2.2 per cent rise in first-quarter organic service revenue, marking an eighth consecutive quarterly rise in its main growth measure, aided by a strong performance in Spain and Germany.

Vodafone, the world’s second-largest mobile operator, confirmed its outlook for the full year on Friday, saying its European markets – which only returned to growth in the final quarter of 2015/2016 – were stable, with growth of 0.3 per cent despite the impact of cuts in roaming charges. Analysts had predicted a flat result in Europe.

Faster growing markets in Africa, Middle East and Asia-Pacific (Amap) grew by 7.7 per cent in the three months to end-June, beating analyst forecasts of a 7 per cent rise.

Chief executive Vittorio Colao said the group was making good progress. "In Europe, our growth remains stable despite regulatory pressure on roaming revenue, with good performance in Germany, Spain and Italy while we are focused on improving our performance in the UK," he said.

“Our growth momentum in Amap remains strong, with excellent performance in South Africa, Turkey and Egypt and ongoing recovery in India.”

Vodafone has switched to reporting in euros from pounds – reflecting the relatively bigger size of its combined euro zone businesses.

It has also said it could move its domicile to a new country after Britain voted to leave the European Union last month.

Analysts expected the group to report organic service revenue growth of 1.9 per cent, against underlying growth of 1.8 per cent in the final quarter of 2015/16.

Reported growth of 2.5 per cent in the final quarter of 2015/16 was boosted by an extra day's trading in February as it was a leap year and accounting changes. Additional reporting: Reuters