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Vodafone Group PLC on Thursday launched a new share buyback as it reported an improved trajectory in Germany and strong growth in emerging markets. Chief Executive Margherita Della Valle said Vodafone has had a ‘good start’ to the financial year with ‘strong revenue and [earnings before interest, tax, depreciation, amortisation, and after leases] 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,’ she added. ‘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.’ In response, shares in the Berkshire, England-based telecommunications company rose 4.9% to 87.20 pence each in London on Thursday, a 52-week high. They have risen 24% in the last 12 months. Revenue in the quarter to June 30, the first quarter of Vodafone’s financial year, rose 3.9% to €9.39 billion from €9.04 billion a year prior. Within this, service revenue increased 5.2% to €7.86 billion from €7.47 billion. On an organic basis service revenue increased 5.5% in the first quarter, picking up slightly from 5.4% in the prior quarter, with growth across all segments apart from Germany. In Germany, total revenue fell 3.9% to €2.98 billion from €3.10 billion. Here, service revenue dropped 3.2% to €2.69 billion from €2.78 billion, the pace of decline slowing from 6.0% in the fourth quarter. In the UK, organic service revenue increased by 0.9% in the first quarter, slowing from 3.1% in the financial fourth quarter, with growth in Consumer and Wholesale segments offset by a decline in Business due to planned managed services contract terminations. Total UK revenue rose 14% to €1.93 billion from €1.69 billion with service revenue of €1.65 billion, up 15% from €1.43 billion. Organic service revenue growth in ’Other Europe’ was 0.2%, easing from 0.8% in the prior quarter, with good Business growth across the footprint offset by a decline in Consumer in Portugal and Romania. Service revenue in Turkiye increased by 30%. Africa showed continued strong organic service revenue growth of 14% in the first quarter, flat quarter-on-quarter, supported by above-inflation growth in Egypt, and Vodacom’s international markets, driven by demand for data and financial services. Organic service revenue in Business grew by 4.0%, slowing from 5.1% in the prior quarter, primarily driven by the strong demand for digital services across Europe and Africa. Vodafone sees full-year group adjusted EBITDAaL of €11.3 to €11.6 billion and adjusted free cash flow of €2.4 to €2.6 billion. In the financial year to March 31, 2025, Vodafone reported adjusted EbitdAaL of €10.93 billion and adjusted FCF of €2.55 billion. In addition, Vodafone announced a new €500 million share buyback to be run by Goldman Sachs International. The buyback should be completed by November 10, Vodafone said. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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