UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULES 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
Dated
July 24, 2025
Commission
File Number: 001-10086
VODAFONE GROUP
PUBLIC LIMITED COMPANY
(Translation
of registrant’s name into English)
VODAFONE
HOUSE, THE CONNECTION, NEWBURY, BERKSHIRE, RG14 2FN,
ENGLAND
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form
20-F ✓
Form 40-F _
This
Report on Form 6-K contains a Stock Exchange Announcement dated 24
July 2025 entitled ‘Vodafone Q1 FY26 Trading
Update’.
|
Vodafone
Group Plc
Q1 FY26 Trading Update
24 July 2025
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 |
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Encouraging progress in line with expectations
"We have had a good start to the year with strong revenue and
EBITDAaL growth. Germany has started its improvement trajectory and
our emerging markets are delivering strong broad-based growth. In
the UK, we have completed the merger with Three and are moving
quickly to combine our networks to benefit
customers.
Today, we reiterate our full year guidance of growth in profit and
cash flow. After two years of transformation and change, Vodafone
is now well positioned for multi-year growth across both Europe and
Africa."
Margherita Della Valle
Group Chief Executive
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UK merger complete
VodafoneThree now
operational
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Reiterated
FY26
financial guidance
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€2.5 billion
Share
buybacks to-date
|
4.9%
Adjusted EBITDAaL
growth
|
−
Group
total revenue: Increased
by 3.9% to €9.4 billion in Q1 with strong
service revenue growth. Revenue growth was also impacted by the
consolidation of Three UK, offset by foreign exchange
movements.
−
Group service
revenue: Grew
by 5.3% in Q1 to €7.9 billion with higher revenue from the
consolidation of Three UK offset by foreign exchange movements. On
an organic basis service revenue increased 5.5% (Q4: 5.4%), with
growth across all segments apart from Germany.
−
Germany: Declined
by 3.2% in Q1 (Q4: -6.0%), due to the impact of the TV law change.
Excluding this, service revenue was broadly stable at -0.3% in Q1
(Q4: -2.7%), as mobile market competitive intensity was offset by
Wholesale growth.
−
UK: Organic
service revenue increased by 0.9% in Q1 (Q4: 3.1%), with growth in
our Consumer and Wholesale segments offset by a decline in Business
due to planned managed
services contract terminations.
−
Other
Europe & Türkiye: Organic
service revenue growth in Other Europe of 0.2% (Q4: 0.8%) with good
Business growth across the footprint offset by a decline in
Consumer in Portugal and Romania. Service revenue in Türkiye
increased by 29.6% in euro
terms1.
−
Africa: Continued
strong organic service revenue growth of 13.8% in Q1 (Q4: 13.5%),
supported by above-inflation growth in Egypt, and Vodacom's
international markets, driven by demand for data and our financial
services.
−
Business: Organic
service revenue grew by 4.0% (Q4: 5.1%), primarily driven by the
strong demand for digital services across Europe and
Africa.
−
Group Adjusted
EBITDAaL: Increased
by 4.9% on an organic basis to €2.7 billion, as service
revenue growth in most markets was partially offset by the impact
of the TV law change in Germany and continued commercial
investments. Adjusted EBITDAaL margin of 29.3% was 0.2 percentage
points higher year-over-year on an organic basis. Operating profit
decreased by 34.3% to €1.0 billion (see basis of preparation
on page 7), primarily due to higher Other income in the prior year
arising from the sale of our stake in Indus
Towers.
−
Share
buybacks: On
20 May 2025 we launched the initial €0.5 billion tranche of a
new €2.0 billion buyback programme following the conclusion
of the first €2.0 billion buyback programme. This tranche is
now complete, and a second €0.5 billion tranche commences
today.
−
UK
merger: VodafoneThree
started operating on 1 June 2025 and is now fully consolidated in
our results. We have already started the integration, with our
customers receiving the first benefits.
−
Group FY26
guidance reiterated: Following
the completion of the transaction, our guidance now includes the
impact of the UK merger2,
with Group Adjusted EBITDAaL of €11.3-€11.6 billion and
Group Adjusted free cash flow of €2.4-€2.6
billion.
Note:
1 Excluding
the impact of hyperinflationary accounting
adjustments.
2 FY26
UK merger impact on a 10-month basis of €0.3 billion Adjusted
EBITDAaL and -€0.2 billion Adjusted free cash
flow.
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For more information, please contact:
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Investor Relations:
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investors.vodafone.com
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Media Relations:
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Vodafone.com/media/contact
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Registered Office: Vodafone House, The Connection, Newbury,
Berkshire RG14 2FN, England. Registered in England No.
1833679
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A webcast Q&A session will be held at 10:00 BST on 24 July
2025. The webcast and supporting information can be accessed
at investors.vodafone.com
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Segment performance
Geographic performance summary
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Service revenue
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Other revenue
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Total revenue
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||||||||||
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Q1 FY26
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Q1 FY25
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Q1 FY26
|
Q1 FY25
|
Q1 FY26
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Q1 FY25
|
|
|||||||
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|
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€m
|
€m
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€m
|
€m
|
€m
|
€m
|
|
|||||||
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Germany
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2,688
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2,778
|
291
|
317
|
2,979
|
3,095
|
|
||||||||
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UK
|
1,646
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1,429
|
288
|
260
|
1,934
|
1,689
|
|
||||||||
|
Other Europe
|
1,184
|
1,180
|
191
|
202
|
1,375
|
1,382
|
|
||||||||
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Türkiye
|
629
|
515
|
133
|
149
|
762
|
664
|
|
||||||||
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Africa
|
1,555
|
1,449
|
377
|
364
|
1,932
|
1,813
|
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||||||||
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Common Functions
|
192
|
146
|
269
|
295
|
461
|
441
|
|
||||||||
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Eliminations
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(36)
|
(32)
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(22)
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(16)
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(58)
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(48)
|
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||||||||
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Group
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7,858
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7,465
|
1,527
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1,571
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9,385
|
9,036
|
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||||||||
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|
|
|
|
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|
|
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||||
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Service revenue growth
|
FY25
|
|
FY26
|
|
|||||||||||
|
Q1
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Q2
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H1
|
Q3
|
Q4
|
H2
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Total
|
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Q1
|
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||||||
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%
|
%
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%
|
%
|
%
|
%
|
%
|
|
%
|
|
||||||
|
Germany
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(1.5)
|
(6.2)
|
(3.9)
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(6.4)
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(6.0)
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(6.2)
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(5.0)
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(3.2)
|
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|||||
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UK
|
2.0
|
2.9
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2.4
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7.6
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5.7
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6.7
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4.5
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15.2
|
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|||||
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Other Europe
|
1.6
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2.1
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1.9
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2.2
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1.1
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1.7
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1.8
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0.3
|
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|||||
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Türkiye
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54.7
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18.8
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33.2
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97.5
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15.2
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50.4
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42.3
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22.1
|
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|||||
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Africa
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1.6
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0.3
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0.9
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4.1
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8.8
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6.4
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3.7
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7.3
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|||||
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Group
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3.2
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0.2
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1.7
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5.6
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2.3
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4.0
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2.8
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5.3
|
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|||||
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|
|
|
|
|
|
|
|
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|
|
|
||||
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Organic service revenue growth1
|
FY25
|
|
FY26
|
||||||||||||
|
Q1
|
Q2
|
H1
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Q3
|
Q4
|
H2
|
Total
|
|
Q1
|
|||||||
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
|
%
|
|||||||
|
Germany
|
(1.5)
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(6.2)
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(3.9)
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(6.4)
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(6.0)
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(6.2)
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(5.0)
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(3.2)
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||||||
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UK
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-
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1.2
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0.6
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3.3
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3.1
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3.2
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1.9
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|
0.9
|
||||||
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Other Europe
|
2.3
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2.6
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2.5
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2.6
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0.8
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1.7
|
2.1
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|
0.2
|
||||||
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Türkiye
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91.9
|
89.1
|
90.3
|
83.4
|
73.2
|
78.1
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83.4
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|
63.8
|
||||||
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Africa
|
10.0
|
9.7
|
9.9
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11.6
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13.5
|
12.6
|
11.3
|
|
13.8
|
||||||
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Group
|
5.4
|
4.2
|
4.8
|
5.2
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5.4
|
5.3
|
5.1
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|
5.5
|
||||||
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|
|
|
|
|
|
|
|
|
|
|
|
||||
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Group profitability
|
FY25
|
|
FY26
|
|
|||||||||||
|
Q1
|
Q2
|
H1
|
Q3
|
Q4
|
H2
|
Total
|
|
Q1
|
|
||||||
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Operating profit/(loss) (€m)
|
1,545
|
837
|
2,382
|
1,022
|
(3,815)
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(2,793)
|
(411)
|
|
1,015
|
|
|||||
|
Adjusted EBITDAaL (€m)1
|
2,681
|
2,730
|
5,411
|
2,828
|
2,693
|
5,521
|
10,932
|
|
2,748
|
|
|||||
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Adjusted EBITDAaL margin %1
|
29.7
|
29.5
|
29.6
|
28.8
|
28.8
|
28.8
|
29.2
|
|
29.3
|
|
|||||
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Organic Adjusted EBITDAaL growth %1
|
5.1
|
2.5
|
3.8
|
2.2
|
0.3
|
1.3
|
2.5
|
|
4.9
|
|
|||||
Note:
1.
Non-GAAP measure. See page 8 for more
information.
|
Germany ⫶ Delivering
expected service revenue improvements
|
|||||
|
|
|
|
|
|
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34% of
Group service revenue
|
Q1 FY26
|
Q1 FY25
|
Reported
|
Organic
|
|
|
|
€m
|
€m
|
change %
|
change %1
|
|
|
Total revenue
|
2,979
|
3,095
|
(3.7)
|
|
|
|
- Service revenue
|
2,688
|
2,778
|
(3.2)
|
(3.2)
|
|
|
- Other revenue
|
291
|
317
|
|
|
|
Note:
1. Non-GAAP
measure. See page 8 for more information.
Growth
Total revenue decreased by 3.7% to €3.0 billion as a result
of lower service and equipment revenue.
Service revenue improved quarter-on-quarter primarily driven by
higher wholesale revenue and Business project phasing. Service
revenue declined 3.2% (Q4: -6.0%) in Q1 due to a -2.9 percentage
point impact (Q4: -3.3 percentage points) from the end to bulk TV
contracting in Multi Dwelling Units ('MDUs').
Fixed service revenue decreased by 8.0% in Q1 (Q4: -9.7%) primarily
due to the cumulative impact of fewer TV and broadband customers.
The MDU transition had a -5.3 percentage point impact (Q4: -5.9
percentage points) on fixed service revenue growth in Q1. Our
performance in the quarter was also impacted by lower consumer
ARPU, partially offset by the demand for Business digital
services.
Mobile service revenue grew by 2.7% in Q1 (Q4: -1.2%) driven by
higher wholesale revenue following the continued migration of
1&1 customers onto our network. We continue to expect the
migration to reach a full run-rate during H2 FY26. Growth was also
supported by the phasing of digital services projects in Business.
This was partially offset by ARPU pressure due to higher
competitive intensity in the market.
Vodafone Business service revenue declined by 0.9% in Q1 (Q4:
-2.8%), as pressure in core connectivity services was partially
offset by strong digital services demand and the phasing of project
work, which also contributed to the quarterly
improvement.
Customers
Our broadband customer base declined by 23,000 during the quarter
(Q4: -7,000), including -15,000 (Q4: -3,000) customers on our
gigabit capable network. The greater decline was primarily due to
our focus on driving front-book ARPU improvement through a
reduction in promotional activity. We continue to be the largest
provider of fixed line gigabit connectivity in Germany, as we
market gigabit speeds to almost 75% of German homes with 5 million
fibre households beyond our own cable footprint of 25 million
households. Our OXG joint venture buildout is gaining momentum with
c.100,000 additional homes passed in the quarter.
Our TV customer base increased by 28,000 (Q4: -81,000) reflecting
our strategy to bundle basic TV services with broadband. This was
partially offset by the ongoing decline in demand for standalone
linear TV services.
Our mobile contract customer base declined by 36,000 (Q4: 12,000)
in the quarter, due to the continued reduction of customers through
resellers' channels and low ARPU Business disconnections. The
overall competitive intensity in the mobile market impacted the
number of new customer additions. However, thanks to the
improvements we have made to our customer experience, our branded
Consumer contract churn has continued to improve, supporting our
overall base value. We connected a further 2.9 million IoT devices,
driven by good demand from the automotive sector.
Operational actions
We continue to invest in customer experience, our brand and
Business. As a result, we continue to see year-on-year improvements
in customer satisfaction and a continued reduction in detractors.
In May 2025 we announced that Vodafone will be the new main sponsor
of eight-time German football champions Borussia Dortmund for the
next five years, further enhancing our brand awareness in Germany.
In July 2025, we enhanced our FamilyCard proposition by updating
our unlimited data tariffs.
We remain on track with the simplification of our German
operations. We are now more than halfway through the implementation
of our 3,200 role reduction programme and have simplified our
organisational structure.
|
UK ⫶ Merger
complete forming VodafoneThree, the UK's leading mobile
operator
|
|||||
|
|
|
|
|
|
|
|
21% of
Group service revenue
|
Q1 FY26
|
Q1 FY25
|
Reported
|
Organic
|
|
|
|
€m
|
€m
|
change %
|
change %1
|
|
|
Total revenue
|
1,934
|
1,689
|
14.5
|
|
|
|
- Service revenue
|
1,646
|
1,429
|
15.2
|
0.9
|
|
|
- Other revenue
|
288
|
260
|
|
|
|
Note:
1. Non-GAAP
measure. See page 8 for more information.
Growth
Total revenue increased by 14.5% to €1.9 billion due to the
consolidation of Three UK's financial results following the
completion of the merger on 31 May 2025. Service revenue increased
by 15.2% (Q4: 5.7%), with organic growth in service revenue of 0.9%
(Q4: 3.1%) as growth in Consumer and Wholesale was partially offset
by a decline in Business.
Mobile service revenue grew by 19.6% (Q4: 4.4%), and organic growth
in mobile service revenue was 0.4% (Q4: 1.8%) as growth in
Wholesale was largely offset by lower price increases compared to
the prior year. The slowdown in quarterly trends was driven by the
delivery of Business project milestones in Q4. Mobile growth was
also impacted by ARPU dilution as a result of a change in mix in
the Three UK customer base, a trend which was expected and will be
addressed through the benefits of the integration
plan.
Fixed service revenue grew by 3.1% (Q4: 8.8%) and organic growth in
fixed service revenue was 2.7% (Q4: 6.4%) with strong growth in
Consumer, supported by higher ARPU and a larger customer base. This
was partially offset by a decline in Business due to planned
managed services contract terminations.
Vodafone Business service revenue declined by 0.8% (Q4: 3.7%). On
an organic basis, Vodafone Business service revenue decreased by
3.0% (Q4: 1.3%) due to managed services contract terminations and
continued mobile ARPU pressure. This was partially offset by good
demand for fixed connectivity and digital services.
Customers
In mobile, our contract customer base declined by 46,000 in the
quarter driven by the timing of large contract disconnections in
Business and Three UK Consumer customer losses.
In fixed, we continue to be one of the fastest growing broadband
providers in the UK and our customer base increased by 44,000 in
Q1, supported by increased customer loyalty. We now cover 20.3
million households with gigabit speeds.
VodafoneThree Integration
On 31 May 2025, we successfully completed the merger of Vodafone UK
and Three UK. The combined business, named VodafoneThree, is 51%
owned by Vodafone and 49% by CK Hutchinson. As of 1 June 2025, we
are now fully consolidating VodafoneThree in our financial
results. VodafoneThree
will invest £11 billion over the next 10 years
creating one of Europe's most advanced 5G networks,
giving millions of customers and businesses up and down the country
a vastly superior mobile experience, and generate cost and capex
synergies of £700 million per annum by the fifth
year after completion. The completion announcement
can be found here: Completion
of Vodafone and Three merger in the UK.
VodafoneThree is now the biggest mobile network operator in the UK
with 28.8 million customers, offering a multi-brand mobile strategy
in consumer through the Vodafone, Three, VOXI, SMARTY and
Talkmobile brands. We have made a fast start integrating the two
businesses and delivering the best-in-class network and experience
we promised our customers.
We are making immediate improvements to our network. Within just
two weeks, through sharing of combined spectrum, 7 million Three
and SMARTY customers have benefitted from improving 4G speeds by up
to 40%. Within a few months, 28.8 million Vodafone and Three
customers will start to benefit from seamlessly using both
networks. By the end of the year this will remove a total of 16,500
km2 of
'not spot' areas.
We now expect to leverage our market leading customer experience
with a focus on driving improved customer loyalty across the Three
UK customer base. On top of the critical network improvements, we
have also launched our 'Just Ask Once' promise which will set a new
standard in customer service.
|
Other Europe1 ⫶ Stable
growth despite market conditions in Portugal
|
|||||
|
|
|
|
|
|
|
|
15% of
Group service revenue
|
Q1 FY26
|
Q1 FY25
|
Reported
|
Organic
|
|
|
|
€m
|
€m
|
change %
|
change %2
|
|
|
Total revenue
|
1,375
|
1,382
|
(0.5)
|
|
|
|
- Service revenue
|
1,184
|
1,180
|
0.3
|
0.2
|
|
|
- Other revenue
|
191
|
202
|
|
|
|
Notes:
1. Other
Europe markets comprise Portugal, Ireland, Greece, Romania, Czech
Republic and Albania.
2. Non-GAAP
measure. See page 8 for more information.
Growth
Total revenue declined 0.5% to €1.4 billion due to lower
non-service revenue. Service revenue grew by 0.3% (Q4: 1.1%) and
organic growth in service revenue was 0.2% (Q4: 0.8%) as growth in
the Business segment supported by demand for digital services was
offset by a decline in Consumer. The quarter-on-quarter slowdown
was driven by continued ARPU pressure in Portugal.
In Portugal, as anticipated following the launch of a fourth
player, service revenue was impacted by lower mobile ARPU, more
than offsetting fixed-line growth. Despite increased competitive
intensity in the market, our Contract customer base continues to
grow. In Ireland, service revenue growth was supported by higher
broadband and mobile Contract customer bases. This was partially
offset by lower mobile contract ARPU. In Greece, service revenue
was broadly stable as growth in mobile, supported by a higher
Contract customer base, was partially offset by a decline in
fixed.
Vodafone Business service revenue increased by 1.6% (Q4: 1.5%) in
Q1, with organic growth in Vodafone Business service revenue of
1.5% (Q4: 1.2%) mainly driven by strong growth across most of our
markets, supported by the demand for digital services.
Customers
We added 28,000 mobile contract customers and 3,000 broadband
customers across our six markets in Q1.
Portfolio
In November 2024, we announced that, along with Digi Romania, we
have signed a memorandum of understanding with Hellenic
Telecommunications in relation to a potential acquisition of
separate parts of its subsidiary Telekom Romania. The discussions
are at an advanced stage with the regulatory approval process also
underway.
|
|
|
|
|
|
|
|
Türkiye ⫶ Strong
euro growth momentum sustained
|
|||||
|
|
|
|
|
|
|
|
8% of
Group service revenue
|
Q1 FY26
|
Q1 FY25
|
Reported
|
Organic
|
|
|
|
€m
|
€m
|
change %
|
change %1,2
|
|
|
Total revenue
|
762
|
664
|
14.8
|
|
|
|
- Service revenue
|
629
|
515
|
22.1
|
63.8
|
|
|
- Other revenue
|
133
|
149
|
|
|
|
Notes:
1. Non-GAAP
measure. See page 8 for more information.
2. Türkiye
was designated as a hyperinflationary economy on 1 April 2022 in
line with IAS 29 'Financial Reporting in Hyperinflationary
Economies'. Organic growth metrics exclude the impacts of the
hyperinflation adjustment and foreign exchange
translation.
Growth
Total revenue increased by 14.8% to €0.8 billion, with
service revenue growth partly offset by depreciation of the local
currency versus the euro. Service revenue increased by 63.8% (Q4:
73.2%) on an organic basis. As reported under IAS 29, service
revenue growth in euro terms was 22.1% (Q4: 15.2%). Excluding the
impact of hyperinflationary accounting adjustments, service revenue
increased by 29.6% in euro terms (Q4: 52.3%). Growth in
Türkiye was primarily driven by ongoing price actions, value
accretive base management and strong growth in
Business.
Vodafone Business service revenue increased by 72.7% (Q4: 105.1%)
on an organic basis, supported by growth in mobile connectivity,
increased data centre usage and demand for digital services. In
euro terms, Business service revenue increased by 28.6% (Q4: 38.0%)
as reported under IAS 29.
Customers
We added 200,000 mobile contract customers during the quarter,
including migrations of prepaid customers.
|
Africa ⫶ Growth
across South Africa, Egypt & International
markets
|
|||||
|
|
|
|
|
|
|
|
20% of
Group service revenue
|
Q1 FY26
|
Q1 FY25
|
Reported
|
Organic
|
|
|
|
€m
|
€m
|
change %
|
change %1
|
|
|
Total revenue
|
1,932
|
1,813
|
6.6
|
|
|
|
- Service revenue
|
1,555
|
1,449
|
7.3
|
13.8
|
|
|
- Other revenue
|
377
|
364
|
|
|
|
Note:
1. Non-GAAP
measure. See page 8 for more information.
Growth
Total revenue increased by 6.6% to €1.9 billion as higher
service revenue was partly offset by the depreciation of local
currencies versus the euro. Service revenue increased by 7.3% (Q4:
8.8%) and organic growth in service revenue was 13.8% (Q4: 13.5%),
with growth in South Africa, Egypt and all of Vodacom's
international markets, apart from Mozambique.
In South Africa, service revenue increased due to growth in the
mobile contract segment, supported by price increases, and good
demand for fixed connectivity. This was partially offset by a
strong prior year comparative in the prepaid segment. Financial
services revenue continued to perform well with organic growth of
5.8% (Q4: 3.0%), supported by demand for insurance
products.
Service revenue growth in Egypt remained above inflation during the
quarter due to sustained customer base growth and data demand.
Price actions in prior quarters continued to contribute to service
revenue growth. Our financial services product, 'Vodafone Cash'
continued to grow with revenue increasing by 55.1% on an organic
basis to €31 million in Q1, and now represents 7.6% of
Egypt's service revenue.
In Vodacom's international markets, service revenue growth was
supported by strong demand for data, an acceleration in M-Pesa
revenue and an improvement in trends in Mozambique. M-Pesa revenue
grew by 20.8% on an organic basis to €112 million and now
represents 28.7% of service revenue.
Vodacom Business service revenue grew by 5.7% (Q4: 9.6%) and
organic growth in Vodacom Business service revenue was 11.2% (Q4:
11.5%), driven by growth in mobile connectivity and strong demand
for our digital services.
Customers
In South Africa, we lost 3,000 mobile contract customers in the
quarter and now have a mobile contract base of 7.0 million. Across
our active customer base, 77.5% of our mobile customers now use
data services.
In Egypt, we launched 5G services during the quarter and added
78,000 contract customers and 636,000 prepaid mobile customers, and
we now have 52.2 million mobile customers. 'Vodafone Cash' reached
12.0 million active users with 0.6 million users added during the
quarter.
In Vodacom's international markets, we added 1.0 million mobile
customers in Q1, and our mobile customer base is now 61.0 million,
with 66.5% of active customers using our data services. Our M-Pesa
customer base now totals 26.1 million active users with 0.9 million
users added during the quarter.
Notes to the Q1 FY26 Trading update
Basis of preparation
Adjusted EBITDAaL and Operating profit has been extracted from the
Group's unaudited consolidated financial statements for the three
months ended 30 June 2025.
These financial statements, insofar as they are applicable to the
calculation of Adjusted EBITDAaL and Operating profit, include all
adjustments necessary for a fair statement of Adjusted EBITDAaL and
Operating profit for the periods presented and apply the same
accounting policies, presentation and methods of calculation as
those followed in the preparation of the Group's consolidated
financial statements for the year ended 31 March 2025, which were
prepared in accordance with UK-adopted International Accounting
Standards ('IAS'), with International Financial Reporting Standards
('IFRS') as issued by the IASB and with the requirements of the UK
Companies Act 2006, except no goodwill impairment assessment in
accordance with IAS 36 "Impairment of Assets" has been conducted at
30 June 2025.
The preparation of the unaudited consolidated financial statements
requires management to make certain estimates and assumptions that
affect the reported amounts of assets and liabilities and
disclosure of contingent assets and liabilities at the end of the
reporting period, and the reported amounts of revenue and expenses
during the period. Actual results could vary from these estimates.
These estimates and underlying assumptions are reviewed on an
ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised if the revisions affect
only that period or in the period of the revision and future
periods if the revision affects both current and future
periods.
Critical accounting judgements and estimates
The Group's critical accounting judgements and estimates are
disclosed in the Group's Annual Report for the year ended 31 March
2025.
Merger of Vodafone UK and Three UK
On 31 May 2025, the Group and CK Hutchison Group Telecom Holdings
Limited ('CKHGT'), a wholly owned subsidiary of CK Hutchison
Holdings Limited ('Hutchison'), transferred their UK
telecommunication businesses, respectively Vodafone UK and Three
UK, into VodafoneThree Holdings Limited ('VTHL'). Following
completion, VTHL is a subsidiary of the Group, in which the Group
owns 51% of the issued share capital and CKHGT indirectly owns 49%.
The Group is consolidating VodafoneThree into its financial results
from 1 June 2025.
The Group has provisionally determined the fair value of the
individual assets acquired and liabilities assumed at the date of
merger. Consequently, depreciation and amortisation charges
included in Operating profit for the month of June reflect the
provisional fair values assigned to these individual
assets.
Non-GAAP measures
In the discussion of the Group's reported operating results,
non-GAAP measures are presented to provide readers with additional
financial information that is regularly reviewed by management.
This additional information presented is not uniformly defined by
all companies including those in the Group's industry. Accordingly,
it may not be comparable with similarly titled measures and
disclosures by other companies. Additionally, certain information
presented is derived from amounts calculated in accordance with
IFRS but is not itself a measure defined under GAAP. Such measures
should not be viewed in isolation or as an alternative to the
equivalent GAAP measure. The non-GAAP measures discussed in this
document are listed below.
|
Non-GAAP measure
|
Defined on page
|
Closest equivalent GAAP measure
|
Reconciled on page
|
|
Performance metrics
|
|
|
|
|
Organic
revenue growth
|
Page
8
|
Revenue
|
Pages 9
and 10
|
|
Organic
service revenue growth
|
Page
8
|
Service
revenue
|
Pages 9
and 10
|
|
Organic
mobile service revenue growth
|
Page
8
|
Service
revenue
|
Pages 9
and 10
|
|
Organic
fixed service revenue growth
|
Page
8
|
Service
revenue
|
Pages 9
and 10
|
|
Organic
Vodafone Business service revenue growth
|
Page
8
|
Service
revenue
|
Pages 9
and 10
|
|
South
Africa - Financial services revenue
|
Page
8
|
Service
revenue
|
Pages 9
and 10
|
|
Vodacom
International M-Pesa revenue
|
Page
8
|
Service
revenue
|
Pages 9
and 10
|
|
Egypt -
Financial services 'Vodafone Cash' revenue
|
Page
8
|
Service
revenue
|
Pages 9
and 10
|
|
Service
revenue growth in Türkiye excluding the impact of the
hyperinflationary adjustments
|
Page
8
|
Service
revenue
|
Pages 9
and 10
|
|
Group
Adjusted EBITDAaL
|
Page
11
|
Operating
profit
|
Page
11
|
|
Organic
Group Adjusted EBITDAaL growth
|
Pages 8
and 11
|
Operating
profit
|
Page
11
|
|
Organic
percentage point change in Group Adjusted EBITDAaL
margin
|
Pages 8
and 11
|
Operating
profit
|
Page
11
|
Performance metrics
Organic growth
Organic growth presents performance on a comparable basis,
excluding the impact of foreign exchange rates, mergers and
acquisitions, the hyperinflation adjustments in Türkiye and
other adjustments to improve the comparability of results between
periods. The following organic growth metrics are provided:
- Revenue;
- Service
revenue;
- Mobile
service revenue;
- Fixed
service revenue;
- Vodafone
Business service revenue;
- South
Africa - Financial services revenue;
- Vodacom
International M-Pesa revenue;
- Egypt
- Financial services 'Vodafone Cash' revenue;
- Group
Adjusted EBITDAaL; and
- Group
Adjusted EBITDAaL margin
Whilst organic growth is not intended to be a substitute for
reported growth, nor is it superior to reported growth, we believe
that the measure provides useful and necessary information to
investors and other interested parties for the following reasons:
(i) It provides additional information on underlying growth of the
business without the effect of certain factors unrelated to its
operating performance; (ii) It is used for internal performance
analysis; and (iii) It facilitates comparability of underlying
growth with other companies (although the term 'organic' is not a
defined term under GAAP and may not, therefore, be comparable with
similarly-titled measures reported by other companies). We have not
provided a comparative in respect of organic growth rates as the
current rates describe the change between the beginning and end of
the current period, with such changes being explained by the
commentary in this document. If comparatives were provided,
significant sections of the commentary for prior periods would also
need to be included, reducing the usefulness and transparency of
this document.
Service revenue growth in Türkiye excluding the impact of the
hyperinflationary adjustment
This growth metric presents performance in Türkiye excluding
hyperinflationary adjustment recorded in the Group's consolidated
financial statements in accordance with IAS 29 'Financial Reporting
in Hyperinflationary Economies'.
Non-GAAP measures
|
Quarter ended 30 June 2025
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
growth
|
M&A
and Other
|
Foreign
exchange
|
Organic
growth
|
|
|
|
Q1 FY26
|
Q1 FY25
|
||||
|
|
|
€m
|
€m
|
%
|
pps
|
pps
|
%
|
|
Service revenue
|
|
|
|
|
|
|
|
|
Germany
|
2,688
|
2,778
|
(3.2)
|
-
|
-
|
(3.2)
|
|
|
|
Mobile service revenue
|
1,264
|
1,231
|
2.7
|
-
|
-
|
2.7
|
|
|
Fixed service revenue
|
1,424
|
1,547
|
(8.0)
|
-
|
-
|
(8.0)
|
|
UK
|
1,646
|
1,429
|
15.2
|
(13.8)
|
(0.5)
|
0.9
|
|
|
|
Mobile service revenue
|
1,250
|
1,045
|
19.6
|
(18.7)
|
(0.5)
|
0.4
|
|
|
Fixed service revenue
|
396
|
384
|
3.1
|
-
|
(0.4)
|
2.7
|
|
Other Europe
|
1,184
|
1,180
|
0.3
|
-
|
(0.1)
|
0.2
|
|
|
Türkiye1
|
629
|
515
|
22.1
|
1.2
|
40.5
|
63.8
|
|
|
Africa
|
1,555
|
1,449
|
7.3
|
-
|
6.5
|
13.8
|
|
|
Common Functions
|
192
|
146
|
|
|
|
|
|
|
Eliminations
|
(36)
|
(32)
|
|
|
|
|
|
|
Total service revenue
|
7,858
|
7,465
|
5.3
|
(2.7)
|
2.9
|
5.5
|
|
|
Other revenue
|
1,527
|
1,571
|
|
|
|
|
|
|
Revenue
|
9,385
|
9,036
|
3.9
|
(2.8)
|
3.0
|
4.1
|
|
|
|
|
|
|
|
|
|
|
|
Other growth metrics
|
|
|
|
|
|
|
|
|
Vodafone Business - Service revenue
|
1,964
|
1,911
|
2.8
|
(0.4)
|
1.6
|
4.0
|
|
|
Germany - Vodafone Business service revenue
|
581
|
586
|
(0.9)
|
-
|
-
|
(0.9)
|
|
|
UK - Vodafone Business service revenue
|
518
|
522
|
(0.8)
|
(1.8)
|
(0.4)
|
(3.0)
|
|
|
Other Europe - Vodafone Business service revenue
|
378
|
372
|
1.6
|
-
|
(0.1)
|
1.5
|
|
|
Türkiye - Vodafone Business service revenue
|
99
|
77
|
28.6
|
1.2
|
42.9
|
72.7
|
|
|
Africa - Vodacom Business service revenue
|
280
|
265
|
5.7
|
-
|
5.5
|
11.2
|
|
|
South Africa - Financial services revenue
|
43
|
42
|
2.4
|
-
|
3.4
|
5.8
|
|
|
Vodacom International M-Pesa revenue
|
112
|
99
|
13.1
|
-
|
7.7
|
20.8
|
|
|
Egypt - Financial services 'Vodafone Cash' revenue
|
31
|
22
|
40.9
|
-
|
14.2
|
55.1
|
|
Note:
1. Reported
service revenue growth in Türkiye of 22.1% includes -7.5pps in
relation to the application of IAS 29 'Financial Reporting in
Hyperinflationary Economies'. Growth in Türkiye
excluding the impact of these hyperinflationary adjustment was
29.6%.
Non-GAAP measures
|
Quarter ended 31 March 2025
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
growth
|
M&A
and Other
|
Foreign
exchange
|
Organic
growth
|
|
|
|
Q4 FY25
|
Q4 FY24
|
||||
|
|
|
€m
|
€m
|
%
|
pps
|
pps
|
%
|
|
Service revenue
|
|
|
|
|
|
|
|
|
Germany
|
2,670
|
2,839
|
(6.0)
|
-
|
-
|
(6.0)
|
|
|
|
Mobile service revenue
|
1,242
|
1,257
|
(1.2)
|
-
|
-
|
(1.2)
|
|
|
Fixed service revenue
|
1,428
|
1,582
|
(9.7)
|
-
|
-
|
(9.7)
|
|
UK
|
1,489
|
1,409
|
5.7
|
-
|
(2.6)
|
3.1
|
|
|
|
Mobile service revenue
|
1,057
|
1,012
|
4.4
|
-
|
(2.6)
|
1.8
|
|
|
Fixed service revenue
|
432
|
397
|
8.8
|
-
|
(2.4)
|
6.4
|
|
Other Europe
|
1,194
|
1,181
|
1.1
|
-
|
(0.3)
|
0.8
|
|
|
Türkiye1
|
605
|
525
|
15.2
|
22.1
|
35.9
|
73.2
|
|
|
Africa
|
1,614
|
1,484
|
8.8
|
-
|
4.7
|
13.5
|
|
|
Common Functions
|
176
|
140
|
|
|
|
|
|
|
Eliminations
|
(28)
|
(32)
|
|
|
|
|
|
|
Total service revenue
|
7,720
|
7,546
|
2.3
|
1.0
|
2.1
|
5.4
|
|
|
Other revenue
|
1,641
|
1,842
|
|
|
|
|
|
|
Revenue
|
9,361
|
9,388
|
(0.3)
|
1.0
|
2.1
|
2.8
|
|
|
|
|
|
|
|
|
|
|
|
Other growth metrics
|
|
|
|
|
|
|
|
|
Vodafone Business - Service revenue
|
2,062
|
1,979
|
4.2
|
0.6
|
0.3
|
5.1
|
|
|
Germany - Vodafone Business service revenue
|
588
|
605
|
(2.8)
|
-
|
-
|
(2.8)
|
|
|
UK - Vodafone Business service revenue
|
565
|
545
|
3.7
|
-
|
(2.4)
|
1.3
|
|
|
Other Europe - Vodafone Business service revenue
|
405
|
399
|
1.5
|
-
|
(0.3)
|
1.2
|
|
|
Türkiye - Vodafone Business service revenue
|
98
|
71
|
38.0
|
23.8
|
43.3
|
105.1
|
|
|
Africa - Vodacom Business service revenue
|
296
|
270
|
9.6
|
-
|
1.9
|
11.5
|
|
|
South Africa - Financial services revenue
|
44
|
40
|
10.0
|
-
|
(7.0)
|
3.0
|
|
|
Vodacom International M-Pesa revenue
|
114
|
98
|
16.3
|
-
|
(2.0)
|
14.3
|
|
Note:
1. Reported
service revenue growth in Türkiye of 15.2% includes -37.1pps
in relation to the application of IAS 29 'Financial Reporting in
Hyperinflationary Economies'. Growth in Türkiye
excluding the impact of these hyperinflationary adjustments was
52.3%.
Non-GAAP measures
|
Non-GAAP measure
|
Purpose
|
Definition
|
|
Group
Adjusted EBITDAaL
|
Adjusted
EBITDAaL is used in conjunction with financial measures such as
operating profit to assess our operating performance and
profitability.
It is a
key external metric used by the investor community to assess
performance of our operations.
It is
our segment performance measure in accordance with IFRS 8
(Operating Segments).
|
Adjusted
EBITDAaL is operating profit after depreciation on lease-related
right of use assets and interest on lease liabilities but excluding
depreciation, amortisation and gains/losses on disposal of owned
assets and excluding share of results of equity accounted
associates and joint ventures, impairment losses/reversals,
restructuring costs arising from discrete restructuring plans,
other income and expense and significant items that are not
considered by management to be reflective of the underlying
performance of the Group.
|
|
Group
Adjusted EBITDAaL margin
|
|
Group
Adjusted EBITDAaL margin is Group Adjusted EBITDAaL divided by
Revenue.
|
The tables below provide the reconciliations of: (i) Group Adjusted
EBITDAaL to Group Operating profit which is the closest equivalent
GAAP measure; (ii) Reported growth in Group Adjusted EBITDAaL to
organic growth in Group Adjusted EBITDAaL; and (iii) Reported
growth in the Group Adjusted EBITDAaL margin and the organic growth
in the Group Adjusted EBITDAaL
margin.
|
|
|
|
Reported
growth
|
M&A
and Other
|
Foreign
exchange
|
Organic
growth
|
|
|
|
|
Q1 FY26
|
Q1 FY25
|
||||
|
|
|
€m
|
€m
|
%
|
pps
|
pps
|
%
|
|
Group Adjusted EBITDAaL
|
2,748
|
2,681
|
2.5
|
(0.5)
|
2.9
|
4.9
|
|
|
Restructuring costs
|
(24)
|
(38)
|
|
|
|
|
|
|
Interest on lease liabilities
|
137
|
109
|
|
|
|
|
|
|
Profit on disposal of property, plant and equipment and intangible
assets
|
1
|
2
|
|
|
|
|
|
|
Depreciation and amortisation of owned assets
|
(1,955)
|
(1,847)
|
|
|
|
|
|
|
Share of results of equity accounted associates and joint
ventures
|
(7)
|
48
|
|
|
|
|
|
|
Other income
|
115
|
590
|
|
|
|
|
|
|
Group Operating
profit1
|
1,015
|
1,545
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage point change in Adjusted EBITDAaL margin
|
29.3
|
29.7
|
(0.4)
|
0.6
|
-
|
0.2
|
|
Note:
1. See
page 7 for more information on the basis of
preparation.
Definitions
Key terms are defined below. See page 8 for the location of
definitions for non-GAAP measures.
|
Term
|
Definition
|
|
Africa
|
Comprises
the Vodacom Group.
|
|
ARPU
|
Average
revenue per user, defined as customer revenue and incoming revenue
divided by average customers.
|
|
Common
Functions
|
Comprises
central teams and business functions.
|
|
Depreciation
and amortisation
|
The
accounting charge that allocates the cost of tangible or intangible
assets, whether owned or leased, to the income statement over its
useful life. The measure includes the profit or loss on disposal of
property, plant and equipment, software and leased
assets.
|
|
Eliminations
|
Refers
to the removal of intercompany transactions to derive the
consolidated financial statements.
|
|
Europe
|
Comprises
the Group's European businesses and the UK.
|
|
Fixed
service revenue
|
Service
revenue (see below) relating to the provision of fixed line and
carrier services.
|
|
GAAP
|
Generally
Accepted Accounting Principles.
|
|
IFRS
|
International
Financial Reporting Standards.
|
|
Incoming
revenue
|
Comprises
revenue from termination rates for voice and messaging to Vodafone
customers.
|
|
Internet
of Things ('IoT')
|
The
network of physical objects embedded with electronics, software,
sensors, and network connectivity, including built-in mobile SIM
cards, that enable these objects to collect data and exchange
communications with one another or a database.
|
|
MDU
|
Multi
Dwelling Units.
|
|
Mobile
service revenue
|
Service
revenue (see below) relating to the provision of mobile
services.
|
|
NPS
|
Net
Promoter Score.
|
|
Other
Europe
|
Other
Europe markets comprise Portugal, Ireland, Greece, Romania, Czech
Republic and Albania.
|
|
Other
revenue
|
Other
revenue principally includes equipment revenue, interest income,
income from partner market arrangements and lease revenue,
including in respect of the lease out of passive tower
infrastructure.
|
|
Reported
growth
|
Reported
growth is based on amounts reported in euros and determined under
IFRS.
|
|
Revenue
|
The
total of Service revenue (see below) and Other revenue (see
above).
|
|
Roaming
|
Roaming
allows customers to make calls, send and receive texts and data on
our and other operators' mobile networks, usually while travelling
abroad.
|
|
Service
revenue
|
Service
revenue is all revenue related to the provision of ongoing services
to the Group's consumer and enterprise customers, together with
roaming revenue, revenue from incoming and outgoing network usage
by non-Vodafone customers and interconnect charges for incoming
calls.
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Vodafone
Business
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Vodafone
Business supports organisations in a digital world. With Vodafone's
expertise in connectivity, our leading IoT platform and our global
scale, we deliver the results that organisations need to progress
and thrive. We support businesses of all sizes and
sectors.
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Notes
1. References
to Vodafone are to Vodafone Group Plc and references to Vodafone
Group are to Vodafone Group Plc and its subsidiaries unless
otherwise stated. Vodafone, the Vodafone Speech Mark Devices,
Vodacom and everyone.connected are trademarks owned by Vodafone.
Other product and company names mentioned herein may be the
trademarks of their respective owners.
2. All
growth rates reflect a comparison to the quarter ended 30 June 2024
unless otherwise stated.
3. References
to "Q1", "Q2", "Q3" and "Q4" are to the three months ended 30 June,
30 September, 31 December and 31 March. References to the "year",
"financial year" or "FY26" are to the financial year ending 31
March 2026. References to "last year", "last financial year" or
"FY25" are to the financial year ended 31 March 2025.
4. Vodacom
refers to the Group's interest in Vodacom Group Limited ('Vodacom')
as well as its operations, including subsidiaries in South Africa,
Egypt, DRC, Tanzania, Mozambique and
Lesotho.
5. This
document contains references to our and our affiliates' websites.
Information on any website is not incorporated into this update and
should not be considered part of this update.
Forward-looking statements and other matters
This document contains 'forward-looking statements' within the
meaning of the US Private Securities Litigation Reform Act of 1995
with respect to the Group's financial condition, results of
operations and businesses and certain of the Group's plans and
objectives. In particular, such forward-looking statements include,
but are not limited to, statements with respect to: the Group's
portfolio transformation plan; expectations regarding the Group's
financial condition or results of operations and the guidance for
Adjusted EBITDAaL and Adjusted free cash flow for the financial
year ending 31 March 2026; the announced potential acquisition of
Telekom Romania; changes to German TV laws and the migration of
users to individual TV customer contracts; expectations for the
Group's future performance generally; the Group's share buyback
programme; expectations regarding the operating environment and
market conditions and trends, including customer usage, competitive
position and macroeconomic pressures, price trends and
opportunities in specific geographic markets; intentions and
expectations regarding the development, launch and expansion of
products, services and technologies, either introduced by Vodafone
or by Vodafone in conjunction with third parties or by third
parties independently; expectations regarding the integration or
performance of current and future investments, associates, joint
ventures, non-controlled interests and newly acquired businesses;
the impact of regulatory and legal proceedings involving the Group
and of scheduled or potential regulatory changes; certain of the
Group's plans and objectives, including the Group's
strategy.
Forward-looking statements are sometimes but not always identified
by their use of a date in the future or such words as 'will',
'may', 'expects', 'believes', 'continue', 'plans', 'further',
'ongoing', 'progress', 'targets' or 'could'. By their nature,
forward-looking statements are inherently predictive, speculative
and involve risk and uncertainty because they relate to events and
depend on circumstances that will occur in the future. There are a
number of factors that could cause actual results and developments
to differ materially from those expressed or implied by these
forward-looking statements. These factors include, but are not
limited to the following: general economic and political conditions
in the jurisdictions in which the Group operates and changes to the
associated legal, regulatory and tax environments; increased
competition; levels of investment in network capacity and the
Group's ability to deploy new technologies, products and services,
including artificial intelligence; the
Group's ability to optimise its portfolio in line with its business
transformation plan; evolving
cyber threats to the Group's services and confidential data; rapid
changes to existing products and services and the inability of new
products and services to perform in accordance with expectations;
the ability of the Group to integrate new technologies, products
and services with existing networks, technologies, products and
services; the Group's ability to generate and grow revenue; slower
than expected impact of new or existing products, services or
technologies on the Group's future revenue, cost structure and
capital expenditure outlays; slower than expected customer growth,
reduced customer retention, reductions or changes in customer
spending and increased pricing pressure; the Group's ability to
extend and expand its spectrum resources, to support ongoing growth
in customer demand for mobile data services; the Group's ability to
secure the timely delivery of high-quality products from suppliers;
loss of suppliers, disruption of supply chains, shortages and
greater than anticipated prices of new mobile handsets; changes in
the costs to the Group of, or the rates the Group may charge for,
terminations and roaming minutes; the impact of a failure or
significant interruption to the Group's telecommunications, data
centres, networks, IT systems or data protection systems; the
Group's ability to realise expected benefits from acquisitions,
partnerships, joint ventures, associates, franchises, brand
licences, platform sharing or other arrangements with third
parties, including the combination of Vodafone's UK business with
Three UK, the mobile network sharing agreement with Virgin Media O2
and the Group's strategic partnerships with Microsoft and Google;
acquisitions and divestments of Group businesses and assets and the
pursuit of new, unexpected strategic opportunities; the Group's
ability to integrate acquired business or assets; the extent of any
future write-downs or impairment charges on the Group's assets, or
restructuring charges incurred as a result of an acquisition or
disposal; developments in the Group's financial condition, earnings
and distributable funds and other factors that the Board takes into
account in determining the level of dividends; the Group's ability
to satisfy working capital requirements; changes in foreign
exchange rates; changes in the regulatory framework in which the
Group operates; the impact of legal or other proceedings against
the Group or other companies in the communications industry; and
changes in statutory tax rates and profit mix.
A review of the reasons why actual results and developments may
differ materially from the expectations disclosed or implied within
forward-looking statements can be found in the summary of our
principal risks in the Group's Annual Report for the year ended 31
March 2025. The Annual Report can be found on the Vodafone Group's
website (investors.vodafone.com/results).
All subsequent written or oral forward-looking statements
attributable to Vodafone or any member of the Vodafone Group or any
persons acting on their behalf are expressly qualified in their
entirety by the factors referred to above. No assurances can be
given that the forward-looking statements in this document will be
realised. Subject to compliance with applicable law and
regulations, Vodafone does not intend to update these
forward-looking statements and does not undertake any obligation to
do so.
Copyright © Vodafone Group 2025
-End-
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorised.
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VODAFONE
GROUP
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PUBLIC
LIMITED COMPANY
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(Registrant)
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Date:
July 24, 2025
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By: /s/ M D B
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Name: Maaike de Bie
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Title: Group General Counsel and Company Secretary
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