Vodafone (NYSE: VOD) reported first half profit fell 35 percent to £2.14 billion, or 4.02 pence a share, and announced it was trimming its sales forecast, the second cut in four months. Citing “challenging” operating conditions in Europe and the ongoing economic downturn in certain markets, Europe’s largest telco cut its forecast for annual sales to the range of £38.8 billion to £39.7 billion. An earlier estimate put sales ending the year March 2009 at £39.8 billion.

Vodafone also announced that it was embarking on cost-cutting drive, aimed at reducing annual operating costs by around £1 billion a year by the 2011 financial year to “offset the pressures from cost inflation and the competitive environment and to enable investment in revenue growth opportunities.” More at mocoNews.net...