Mobile phone giant Vodafone has announced annual pre-tax losses of £2.4 billion, down from £14.9 billion in the previous 12 months.
The world's largest mobile group incurred one-off costs of £11.6 billion in the year ending March 31st 2007, largely due to regulatory pressures in Europe.
But while its losses shrank, Vodafone experienced a slight dip in its pre-tax profits, which fell to £8.75 billion against last year's £8.8 billion.
Nevertheless the British firm said it had made "good progress" on its strategy objectives, posting a 4.3 per cent rise in revenue overall and a 6.3 per cent increase in mobile income.
"These results show we have made good progress in the execution of our strategy," said Arun Sarin, Vodafone chief executive.
"We have implemented core cost reduction measures, introduced targeted revenue stimulation initiatives in Europe and launched a number of services focusing on our customers' total communications needs."
Mr Sarin added: "The last year has also seen a further reshaping of Vodafone's portfolio, with our acquisitions in Turkey and India further increasing the group's exposure to the exciting growth opportunities in emerging markets. We are well placed to continue delivering on our strategy."
Earlier this year Vodafone bought a £5.7 billion stake in Indian mobile firm Hutchison Essar for £5.7 billion, and the company also noted today that growth in emerging markets was continuing apace.