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Budget airline EasyJet reported a drop in profit and revenue for the year to the end of September and cut its dividend as it took a hit from terrorist attacks and as the UK’s decision to leave the European Union made the euro more expensive for British travellers over the summer.

Pre-tax profit slid 27.9% to £495m, on revenue of £4.67bn, down from £4.69bn the year before. Revenue per seat fell 6.4% to £58.46, reflecting the impact of external events such as the terrorist attacks in Egypt, Paris, Brussels, Turkey and Nice.

Still, the pre-tax profit announced was within the £490m to £495m range the company had guided to in October.

Basic earnings per share declined to 108.7p from 139.1p.

EasyJet said the total impact of external events during the year on pre-tax profit was an estimated £150m. Meanwhile, the company took an £88m hit from the weaker pound.

The group said it carried a record number of passengers, up 6.6% year-on-year to 73.1m with a record load factor of 91.6% versus 91.5% in 2015.

EasyJet declared a dividend of 53.8p per share, down from 55.2p but in line with its increased payout policy of 50% of profit after tax.

The company said it expects to incur £5m in costs this year and £10m next year for an EU air operator certificate, which would allow it to fly freely throughout Europe after the UK leaves the EU.

An encouraging performance in Germany and Italy lifted first-half trading at Vodafone slightly above the telecoms giant's expectations, offsetting a more competitive market in India.

The dividend was lifted 1.9% to 4.74 eurocents as group revenue slipped 3.9% to €27.1bn in the six months ended 30 September, with organic service revenue up 2.3%.

Organic service revenue growth accelerated in the second quarter to 2.4%, led by improvement in Europe to 1.0% from 0.3% in the first, while the Africa, Middle East, Asia, Pacific region grew 7.1%, down from 7.7% in the first three months of the year.

For the first half, organic earnings before interest, tax, depreciation and amortisation growth of 4.3% to €7.9bn, with breakeven free cash flow reached thanks to lower capital additions and seasonal working capital outflows.

At the statutory level, Vodafone fell to a €5.4bn pre-tax loss due to a €5bn non-cash impairment in India net of tax due to increased competition, where the company has looked to fight back by strengthening its commercial offers and buying in the recent spectrum auction in the more profitable areas of the country.

Guidance for the full year was narrowed moderately, with management now predicting organic EBITDA growth of 3-6% to €15.7-16.1bn, with free cash flow of at least €4.0bn.

"We have further improved our performance during the first half of the financial year with Europe modestly ahead of our expectations - led by Germany and Italy - and good execution in AMAP," said chief executive Vittorio Colao.