Vodafone targets upper end of guidance as first quarter revenue rises
Vodafone Group PLC on Monday said it has made a "good start" to its financial year, boosted by the consolidation of Three UK and "broad-based" growth in all segments.
The Berkshire, England-based telecommunications company said total revenue in the first quarter to June 30 rose 9.7% to EUR10.29 billion from EUR9.39 billion a year prior, with total service revenue alone shooting up 9.8% to EUR8.63 billion.
On an organic basis, service revenue climbed 5.2% with growth in all segments. Organic service revenue was up 1.2% in Germany, 0.6% in the UK, 13% in Africa, 1.0% in the rest of Europe and 8.3% in Turkey.
The top line hike was down to "strong service revenue growth and the consolidation of Three UK, partially offset by foreign exchange movements", the firm said.
It announced a deal in May to buyout CK Hutchison Holdings Ltd's stake in the VodafoneThree joint venture for £4.3 billion. In June, investee Vodacom Group Ltd sealed the acquisition of an effective 20% stake in Safaricom, taking its stake to 55%.
Adjusted earnings before interest, tax, depreciation, amortisation and after leases climbed 6.7% to EUR2.93 billion from EUR2.75 billion a year prior.
Vodafone's guidance for the year now includes the impact of consolidating Safaricom.
The firm expects an annual adjusted Ebitda after leases between EUR13.0 billion and EUR13.3 billion, lifted from EUR11.9 billion and EUR12.2 billion. In financial 2026, it amounted to EUR11.4 billion.
Chief Executive Officer Margherita Della Valle said: "Following the completion of the Safaricom transaction, we are updating our guidance range to reflect the contribution from Kenya and Ethiopia. And after our good start to the year, we are expecting to deliver the upper end of the new group ranges."
Shares in Vodafone were up 2.6% at 117.60 pence on Monday morning in London.
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