Vodafone was forced to tell investors talks it would not merge with Liberty in September Getty

Vodafone has exceeded expectations in the first half of its financial year 2016. The telecom firm reported an organic services revenue growth of 1.2% to £18.4bn (€25.9bn, $27.8bn), higher than the 0.8% - 0.9% market expectation.

The company's adjusted organic operating profit dropped by 5.9% in the six months to 30 September 2015. Vodafone is focusing on improving margins to increase profits, chief executive Vittorio Colao told investors.

"We have reached an important turning point for the Group with a return to organic growth in service revenue and EBITDA in the first half of the financial year. Our customers are benefiting from the significant investments we are making in high speed mobile and fixed networks, as evidenced by the huge growth in demand for data and the increased loyalty to Vodafone services," said Colao.

Sales were lifted by strong results from Africa, the Middle East and Asia Pacific areas, which grew by 6.4%, compared to a 1.3% fall in Europe sales. In the UK, sales edged up, but the region generated a slight loss for Vodafone.

The phone company previously left shareholders empty handed after talks with US and German cable company Liberty Global terminated. Vodafone's share price tumbled when it announced on 28 September it will not merge with Liberty.