Zegona Communications revenue rises as Vodafone Spain back to growth

Zegona Communications PLC on Tuesday highlighted improved cash flow at Vodafone Spain as it reported an increase in annual revenue.

The investor in European telecommunications and media companies said its pretax loss narrowed to €189.4 million in the 12 months that ended March 31 from €438.8 million the year prior.

Earnings before interest, tax, depreciation and amortisation and after leases improved 29% to €1.33 billion from €1.03 billion.

Revenue grew 20% to €3.63 billion in financial 2026 from €3.01 billion in financial 2025.

Zegona said it stemmed the revenue decline in Vodafone Spain during the financial year, returning to growth in the second half. Annual revenue growth at Vodafone Spain was 1.1% in the third quarter and 2.0% in the fourth.

Vodafone Spain’s operational cash flow was €763 million in the recent financial year, up 22% from €625 million. Zegona completed the €5.0 billion purchase of Vodafone Spain from Vodafone Group PLC back in May 2024.

Zegona said it has continued to grow its customer base with six consecutive quarters of positive net adds for both broadband and contract mobile lines.

At the end of the financial year, broadband lines stood at 2.6 million, growing 29,000 during the course of the year. Contract mobile lines reached 10.2 million, up 128,000 in the financial year, the strongest full year growth in contract mobile net adds in the last five years, the company said.

‘Our priority is to continue to invest in our customers to drive top line growth, whilst focusing on cost reduction initiatives to deliver industry leading cash flow margins,’ said Chair & Chief Executive Eamonn O’Hare.

‘FY26 results show the strong operational momentum that is underpinning the improvement in the company‘s value and sets us up well for the next phase of Vodafone Spain’s transformation.’

During the financial year, Zegona returned €1.6 billion to shareholders, including a €1.4 billion special dividend paid in January. It also is conducting a €200 million share buyback.

Shares in Zegona Communications were up 1.5% at 1,808.00 pence each in London on Tuesday. They have more than doubled in the last 12 months.

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