Vodafone has recorded its first ever downfall in the annual revenues as the recession in southern Europe sighted its taking falls up to 17%.

Along with the overburdened finances, the major British mobile phone company said that it will reinvest in the upcoming month's £2.1bn dividend from US subsidiary Verizon Wireless in the business rather than giving back the cash to the shareholders.

On the whole, the revenues at the British mobile phone company decreased by 4.2% to £44.4bn, marking the first similar reduction in the company's history.

The result that was derived on Tuesday also depicted the massive fall in organic service revenue. This counted the earnings from the calls; however, it deducted the handset sales. It also took an account of the mergers and disposals and alterations in the values of the currency. This all came after the introduction of the measures in year 2003.

The company noted the value of its businesses by £1.8bn. It also introduced a £7.7bn the reduction in book value of its regulations in Italy and Spain this year.

The Chief executive of the company, Vittorio Colao, said that they had faced headwinds from a blend of continued tough economic conditions, most commonly in the southern Europe and an unfavorable European regulatory environment.