Vodafone Group PLC Earnings - Q3 2025 Analysis & Highlights
Key Takeaways
Vodafone Group PLC's Q2 2026 earnings call highlighted the company's transformation progress, financial performance, and strategic priorities in key markets like Germany and the UK. The company reported accelerated service revenue growth, increased profitability, and confirmed expectations to close the year at the upper end of growth guidance. Discussions also covered operational progress, integration efforts, and future growth opportunities, including a progressive dividend policy.
Key Financial Results
Group service revenue growth accelerated to 5.8% in Q2, supported by growth across Europe and Africa.
Group EBITDAaL grew by 6.8% in the first half, with nearly all markets posting EBITDAaL growth.
The company expects to close the year at the upper end of the growth guidance set out in May.
Over €5 billion returned to shareholders via buybacks and dividends over the last 18 months, with a further €1 billion of buybacks to come over the next six months.
Business Segment Results
Germany: Turnaround continues with a focus on customer experience, simplification, and value-driven growth.
UK: Driving the integration of Vodafone and Three, with both remaining top priorities.
Africa: Leadership positions with another strong set of results, in line with medium-term double-digit EBITDAaL growth guidance.
Capital Allocation
The company is moving to a progressive dividend policy.
Over €5 billion has been returned to shareholders via buybacks and dividends over the last 18 months.
A further €1 billion of buybacks is planned over the next six months.
Industry Trends and Dynamics
Germany: Largest telecom market in Europe, with Vodafone operating at scale across both mobile and fixed.
UK: Vodafone is the largest mobile operator and fastest-growing broadband provider.
Africa: Structural opportunities across all services from core connectivity to financial services to B2B.
Competitive Landscape
Germany: Focused on becoming the market leader in customer experience and a one-stop-shop provider for fixed, mobile, and TV.
UK: Leveraging unique assets to expand customer experience leadership, monetize improved mobile network quality, and drive fixed service growth.
Macroeconomic Environment
Emerging markets growth contribution is expected to trend down as inflation moderates.
Growth Opportunities and Strategies
Germany: Disciplined execution focused on value, new propositions in mobile, and increasing front book ARPUs in fixed.
UK: Cross-selling opportunities with Vodafone broadband offers now open to Three customers and FWA open to Vodafone customers.
Africa: Combining structural opportunities across core connectivity, financial services, and B2B.
Expanding digital and financial services.
Multi-brand approach to maximize market demand opportunities.
Financial Guidance and Outlook
Confirmed expectations to close the year at the upper end of the growth guidance.
Objectives include improving customer experience, further simplifying the business, and delivering sustainable cash flow growth in FY 2026 and beyond.
Confidence in growth outlook due to the turnaround of Germany, the UK integration, and strong positions in growing markets across Europe and Africa.
