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Vodafone Group PLC on Tuesday announced a €500 million share buyback, and a new dividend policy, after reporting broad-based growth in the first half of its financial year. In response, shares in the Berkshire, England-based telecommunications company rose 4.8% to 93.20 pence each in London on Tuesday. It was the best performing stock on the FTSE 100 which was up 1.0%. Vodafone said pretax profit was flat at €2.11 billion in the six months to September, on revenue up 7.3% to €19.61 billion from €18.28 billion a year earlier. Adjusted earnings before interest, tax, depreciation and amortisation and leases rose 5.9% to €5.73 billion from €5.41 billion, supported by growth in the UK, Turkey and Africa, and a return to top-line growth in Germany. Service revenue grew by 8.1% to €16.33 from €15.11 billion the year prior, and increased by 5.7% on an organic basis. Germany returned to growth in the second quarter, up 5.0%, supported by the end of the TV law change impact and higher wholesale revenue. In the UK, organic revenue grew 1.2% in the second quarter, reflecting strong commercial momentum and a ‘fast start’ on VodafoneThree integration. Africa maintained double-digit organic service revenue growth in the second quarter at 13.5%, supported by above-inflation growth in Egypt and Vodacom’s international markets, with strong demand for data and financial services. Business reported 2.9% organic growth in the second quarter, with strong demand for digital services. ‘Whilst we have more to do, we delivered good strategic progress in the half year, driving further operational improvements across the business, expanding our customer satisfaction initiatives, and making a fast start in integrating the Vodafone and Three networks in the UK,’ said Chief Executive Margherita Della Valle. Looking ahead, Vodafone expects to deliver full-year results at the upper end of its financial 2026 guidance for adjusted EbitdaaL of €11.3 billion to €11.6 billion and adjusted free cash flow of €2.4 billion to €2.6 billion. In the financial year to March 2025, Vodafone reported adjusted EbitdaaL of €10.93 billion and adjusted free cash flow of €2.55 billion. Reflecting the adjusted free cash flow growth, Vodafone announce a new ‘progressive’ dividend policy and expects to grow the financial 2026 dividend per share by 2.5% from €4.5 euro cents in the prior financial year. In addition, Vodafone announced it will start a €500 million share buyback on Tuesday. The programme will be run by Merrill Lynch International and and no later than February 4, 2026. Copyright 2025 Alliance News Ltd. All Rights Reserved.
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