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Vodafone Group PLC on Thursday said the company is set to meet its full year guidance as group revenue rises in the first quarter. The Newbury, England-based telecommunications company said in the first quarter that ended June 30, operating profit surged 42% to £1.55 billion from £1.08 billion the previous year. Total revenue increased 2.8% to £9.04 billion from £8.79 billion, with service revenue growing 3.2% to £7.47 billion and other revenue gaining 0.8% to £1.57 billion. Chief Executive Margherita Della Valle said: ‘Our performance in the first quarter is consistent with our full year guidance, which we reiterate today. We continue to deliver strong revenue growth in Africa and Turkey, whilst lower inflation is slowing revenue growth in Europe. ‘We continue to progress our transactions in Italy and the UK as well as the broader transformation of Vodafone, focused on customer experience, business growth and operational execution in Germany. The actions we are taking now will deliver improved performance and underpin the turnaround of Vodafone.’ Revenue growth in Germany slumped during the quarter, which Vodafone said was a consequence of television law changes. In addition, the company said it completed a cash tender offer to purchase up to $730.0 million of its 4.375% notes due February 2043, with $640.4 million tendered. On June 28, Vodafone closed the offering of $2.00 billion 5.75% notes due 2054, and $1.00 billion 5.875% notes due 2064. The proceeds from the issuance of these new notes, alongside cash balances, are expected to fund the tender offer. Vodafone confirmed its financial 2025 guidance of adjusted earnings before interest, taxes, depreciation, amortisation, and special losses of approximately €11 billion, close to €11.02 billion reported last year. Forecasted adjusted free cash flow of at least €2.4 billion reflects a 7.7% decline from €2.60 billion last year. Vodafone shares were down 1.6% to 69.29 pence each in London on Thursday morning. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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