Mobile phone giant Vodafone Group Plc, reported a narrower loss for its 2007 fiscal year on Tuesday, giving an optimistic outlook driven by emerging markets.

The company posted a full year loss of 5.43 billion pounds ($10.8 billion) or 9.84 pence a share, from 21.9 billion pounds, or 35.01 pence (69 cents) per share, a year earlier.

Revenue climbed 6 percent to 31.1 billion pounds ($61.6 billion).

These results show we have made good progress in the execution of our strategy, Chief Executive Arun Sarin said in a statement.

Sarin added that the company made good progress cutting costs in its most mature European markets for the year.

The company has struggled to grow in its main European market, where nearly saturated. It is reshaping its portfolio with important acquisitions in Turkey and India.

Earlier this year, the company paid $10.9 billion for a controlling part of Hutchinson Essar, India’s fourth largest mobile operator.

It also launched two low-cost phones from Nokia and Motorola in an effort to gain more presence in emerging markets.

Vodafone also forecast annual sales will rise between 33.3 billion pounds and 34.2 billion pounds. Operating profit will rise between 9.3 billion pounds and 9.8 billion pounds.

Analysts had predicted sales 33.5 billion, according to a poll by Bloomberg.