The UK’s Vodafone Group reported first quarter service revenue growth that beat analysts’ expectations and named a new chief financial officer to bolster its challenged German business.

Service revenue grew 3.7% in the quarter from a year earlier, the company said in a statement on Monday, beating the 2.9% average estimate from analysts in a Bloomberg survey. The business was buoyed by strength in its enterprise division, which newly appointed CEO Margherita Della Valle has prioritised, as well as growth in its African operations, which are housed under South Africa’s Vodacom Group.

Still, the company’s German market, its largest operation, is shaping up to be one of Della Valle’s biggest challenges as she works to turn around stagnating growth at Vodafone. Accounting for nearly a third of sales, Germany reported quarterly service revenue that declined 1.3% from a year ago. That was the unit’s fifth consecutive quarterly drop.

The German business has suffered from strategic missteps including a flawed introduction of a new IT system to comply with local regulations, which former CEO Nick Read called “clunky” and said cost the company customers.

Vodafone named Luka Mucic, a longtime executive at German enterprise software company SAP, to become its CFO starting in September, according to a separate statement on Monday. Vodafone chairman Jean-François van Boxmeer called out Mucic’s experience in the German business market as a highlight.

Shares rose 3.1% to 75.77p in London trading at 8.06am local time. The stock has declined 10% this year.

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Vodafone’s sales in other key European markets including Italy and Spain, where it’s been exploring deals in the face of persistent price-cutting competition, shrank slower than previous quarters. UK sales rose following price hikes.