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Vodafone Group has reported higher sales and profits amid a drive to cut costs which has led to the shedding of 1,200 jobs in Europe over recent months.

The telecoms giant said its cost-saving initiatives had helped deliver the reduction in roles across Europe and in its shared operations in the three months to the end of June.

Vodafone did not specify how many UK jobs have been affected. It is understood that some of the reduction involved natural attrition, when people are not replaced after they leave the business.

It is aiming to shave about £700 million a year from its total costs and capital spending by the 2030 financial year.

This is partly coming from Vodafone’s merger with Three in the UK, which completed last year and formed the nation’s largest mobile operator.

The company has since been working to integrate the two brands, including sharing their 5G networks.

Vodafone has been pushing ahead with a major transformation under chief executive Margherita Della Valle, including a focus on its biggest markets in Germany and the UK, as well as Africa, while pulling out of countries where it has a smaller presence.

In the latest update to investors, the business said that its service revenues totalled 8.6 billion euro (£7.4 billion) for its first quarter, up by a 10th compared with the previous year.

On an organic basis, service revenues increased by 5.2%, while earnings on an adjusted basis were up by by 6.7% year-on-year.

Vodafone said it was now expecting adjusted earnings to come in between 13 billion euros (£11.1 billion) and 13.3 billion euros (£11.4 billion) for the year, after taking control of Kenya-based Safaricom last month.

In the UK, mobile service revenues on an organic basis declined by 0.7% in the three months to the end of June, compared with the year before.

Vodafone said this was partly because of the phasing out of mid-contract price rises bringing down revenue growth per customer, after a crackdown by regulator Ofcom.

The number of UK customers with mobile contracts dropped by 48,000 during the quarter, including business SIMs, but it gained about 34,000 broadband customers.

Mark Crouch, market analyst for Etoro, says: “For years, Vodafone has promised that its turnaround would eventually show through in the numbers.

“This latest update suggests that promise is finally starting to become reality.

“While the headline revenue boost was helped by the consolidation of Three UK and Safaricom, the stronger message is that the underlying business is beginning to build momentum.”