Britain’s Vodafone (VOD.L) said it was on track to meet its full-year guidance after reporting a 2.7% rise in third-quarter group service revenue, with growth in both Europe and Africa.

Chief Executive Nick Read said Vodafone, which has activist Cevian Capital as a new investor, had delivered a “solid quarter”, with consistent service revenue growth in its biggest market Germany of 1.1%.

The group was focused on strengthening commercial momentum in Germany, he said, and accelerating its transformation in Spain, where revenue continued to decline

“We are also committed to creating value for our shareholders through proactive portfolio actions and continuing to improve returns at pace,” he said.

Read, who spun out the group’s towers business last year, has called for regulators to allow more consolidation in European markets.

Reuters reported earlier this month that Vodafone and Iliad were in talks to combine their businesses in Italy.

Vodafone said in November it expected to report adjusted core earnings of 15.2 billion to 15.4 billion euros and adjusted free cash flow of at least 5.3 billion euros.

Analysts expect adjusted core earnings of 15.26 billion euros and adjusted free cash flow of 5.34 billion euros, according to a company-compiled consensus.