REG - Vodafone Group Plc - FY26 Preliminary Results
Tue 07:00
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RNS Number : 9488D Vodafone Group Plc 12 May 2026
Vodafone Group Plc
FY26 Preliminary Results
12 May 2026
Vodafone: simpler, stronger, growing
"After the transformation of the last three years, we are now a simpler
company with a stronger growth outlook.
Our strategic progress has generated good Group service revenue momentum for
the year, together with profit and cash flow at the upper end of our guidance
range. We returned to top line growth in Germany, alongside strong
performances across Africa and in Türkiye. Our early successes from the UK
merger integration reinforce our confidence in its potential and I am
delighted that we are now gaining full ownership.
Looking ahead, we will continue to drive continuous improvements across our
business, with customer experience as our number one priority. We are now well
set for mid-term growth."
Margherita Della Valle
Group Chief Executive
Financial highlights
4.5% Achieved top end €3.1 billion Medium term Adj. FCF growth ambition
Adjusted EBITDAaL organic growth FY26 financial guidance Total shareholder returns
- Total revenue: Increased 8.0% to €40.5 billion (FY25: €37.4
billion), due to strong service revenue growth and the consolidation of Three
UK, partially offset by foreign exchange movements.
- Service revenue: Grew 8.8% to €33.5 billion (FY25: €30.8 billion)
and on an organic basis increased 5.4% with growth in all segments except
Germany.
- Germany: Organic service revenue decreased 0.2% in FY26, with gradual
improvement throughout the year to 1.3% growth in Q4. Mobile market
competitive intensity and the final TV law impact were offset by higher
wholesale revenue, Consumer broadband ARPU improvement and strong digital
services demand in Business.
- UK: Organic service revenue increased 0.3% with growth in our Consumer
and Wholesale segments, partially offset by Business decline due to planned
managed services contract terminations.
- Other Europe and Türkiye: Organic service revenue grew 0.5% in Other
Europe with good performance across markets offset by competitive pressure in
Portugal. Service revenue in Türkiye increased 10.8% in euro terms.(1)
- Africa: Maintained double-digit organic service revenue growth (FY26:
12.9%), supported by growth above inflation in Egypt and Vodacom's
international markets.
- Business: Organic service revenue grew 3.2%, with double digit growth
in digital services.
- Adjusted EBITDAaL: Increased 3.8% to €11.4 billion (FY25: €10.9
billion), and 4.5% on an organic basis, driven by service revenue growth, only
partially offset by continued commercial investment.
- Operating profit: Increased by €3.2 billion to €2.8 billion (FY25:
loss of €0.4 billion), due to Adjusted EBITDAaL growth and non-cash
impairment charges in the prior year, partially offset by higher depreciation
and amortisation following the consolidation of Three UK.
- Shareholder returns: The final €0.5 billion tranche of the second
€2 billion buyback programme completed on 11 May 2026. Total dividends per
share are 4.6125 eurocents in FY26 (FY25: 4.5 eurocents), a 2.5% increase
year-on-year, in line with our commitment to a progressive dividend policy
announced in November 2025.
- Top end of FY26 guidance range achieved: Adjusted EBITDAaL at €11.6
billion and Adjusted free cash flow at €2.6 billion on a guidance basis.
Strategic highlights
- A new chapter: Following our transformation actions, we are entering a
new chapter as a simpler and stronger business, and our external environment
is creating new opportunities, with new demand for high quality connectivity
and a more supportive regulatory context.
- A clear strategy: Our strategy is focused on continuing to deliver
operational progress across our priorities of Customers, Simplicity and
Growth. This will drive improved performance and provide us with strong
foundations for future growth.
- A growth outlook: With our diversified growth portfolio, we will
continue to drive attractive returns for our shareholders. Our growth
portfolio gives us the confidence in our medium-term ambition to deliver
double-digit Adjusted free cash flow growth, driving continued Adjusted free
cash flow growth in euro terms.
Note: 1. Excluding the impact of hyperinflationary accounting adjustments.
For more information, please contact:
Investor Relations: vodafone.com ir@vodafone.co.uk Media Relations: Vodafone.com/media/contact GroupMedia@vodafone.com
Registered Office: Vodafone House, The Connection, Newbury, Berkshire RG14
2FN, England. Registered in England No. 1833679
Awebcast Q&A session will be held at 10:00 GMT on 12 May 2026. The
webcast and supporting information can be accessed at vodafone.com
Strategic progress & portfolio
Vodafone, a new chapter
Since May 2023, Vodafone has been through a period of significant
transformation, covering all aspects of our business, including portfolio,
capital structure and operating model. Three years on, we are entering a new
chapter as a simpler business. We have a clear strategy and through continued
execution, we are in a strong position to grow.
A new chapter
Alongside our internal transformation, we are also entering a new connectivity
era benefiting from a more supportive external environment, with favourable
trends across demand, supply and regulation.
- A simpler Vodafone: With a clear operating model organised around four
distinct operating divisions: Europe, Africa, Business and Investments. Our
operating divisions are supported by our scaled shared operations and
platforms.
- A well-positioned Vodafone: Operating in markets with sustainable
structures, where we hold strong and scaled positions. We have reset our
capital structure, with disciplined and stable capital investment, a stronger
balance sheet, and €9 billion returned to shareholders over the last three
years.
- Demand is being reshaped: Customers today expect seamless connectivity
across all their devices, with the end-to-end customer experience driving
loyalty and value. Our products & services are critical enablers of the
Artificial Intelligence revolution, the need for trusted, secure, sovereign
and resilient services, and the digitalisation of economies.
- An unparalleled global network: Vodafone's global networks, spanning
from the seabed to the stars, provide a unique foundation to meet rising
demand for the best next-generation connectivity. Our trusted networks and
range of best-available technologies will unlock new use cases and provide
leading experiences for our customers.
- A more supportive environment: Our customers are benefiting from
investment in our networks, which are more resilient, and better quality.
These benefits are driven by a more supportive environment, with sustainable
pricing models embedded in more markets than ever before, and pro-investment
spectrum decisions and support for scaled infrastructure unlocking
competitiveness and innovation.
A clear strategy
Vodafone's strategy is focused on delivering operational progress across three
clear priorities: Customers, Simplicity and Growth. Together, these priorities
underpin our improved performance and provide Vodafone with strong foundations
for future growth.
- Customers: We have reset and continue to improve our customers'
experience, alongside investment in our leading networks. Our actions have
also supported growing market share in many of our markets.
- Simplicity: We have also continued to drive efficiencies across the
Group, with opex savings supporting reinvestments in attractive growth
opportunities, such as B2B, our brand, and our customer experience. Whilst we
have driven a significant structural change, we have also maintained strong
employee engagement, and high satisfaction with our Shared Operations.
- Growth: Over the last three years, strong execution of our strategic
priorities has supported service revenue growth across Europe & Africa,
accelerated Group Adjusted EBITDAaL growth, and consistent growth in Adjusted
free cash flow.
A growth outlook
We operate through four key divisions, Europe, Africa, B2B and Investments,
each with their own strengths, strategic priorities and growth drivers. In
addition, we have several scaled platforms that provide us with a structural
advantage. With these assets, our diversified portfolio and growth drivers, we
will continue to drive attractive returns for our shareholders.
- Europe: We are focused on building trust with our strong networks and
leading customer experiences, as well as driving value through convergence. We
have clear priorities against these strategic pillars for the years ahead,
including in Germany where we are focused on the turnaround, and in the UK,
where we continue to progress with the integration.
- Africa: Vodacom is well positioned to capture structural growth
opportunities such as population growth and rising data usage. Vodacom will
also continue to build on its leading FinTech platforms, as well as target
broadband leadership with a suite of next-generation technologies, including
fibre-to-the-home ('FTTH'), fixed wireless access ('FWA'), and satellite
connectivity.
- Business: Across Europe and Africa, with our platforms we are serving
customers of all sizes, from small enterprises to global multinationals. We
operate in attractive markets, leverage our scale and local expertise, and are
diversifying beyond connectivity. Our products & services help businesses
digitalise and unlock the power of the latest technologies, including 5G
standalone, sovereign & secure solutions, GenAI for SMEs, and
satellite-based IoT.
- Investments: Vodafone has a valuable portfolio of non-controlled
investments, including stakes in telecoms operations and infrastructure, as
well as a range of innovative businesses. Since forming the Investments
division two years ago, we have taken an active management approach and
simplified this portfolio, crystallising significant value. This included the
recently announced sale of our interests in VodafoneZiggo for €1 billion
cash proceeds and a 10% stake in a larger Benelux company, Ziggo Group.
- Our scale: Provides us with a structural advantage, enabling the Group
to build once and deploy at scale across our markets and shared commercial,
technology and operational platforms. Our strengths include our globally
recognised brand, our industry-leading shared operations, a unique opportunity
to rapidly embed AI across our markets, and our scaled digital platforms
across Consumer, IoT and financial services.
- Our growth portfolio: Our diversified footprint, disciplined capital
allocation and clear operational progress provide us with the confidence in
our mid-term value equation.
Mid-term FY26 Considerations
ambition(1)
performance
Revenue Europe +0.1% Building trust, focused on value
growth
Africa +12.9% Structural growth opportunities
B2B +3.2% Growing demand, with diverse products & services
Group +5.4%
Operating leverage Group Adj. EBITDAaL margin 28.1% €2bn (gross) efficiency & synergy potential
€1bn (net) EU opex reduction opportunity (FY27-FY30)(2,3)
Adj. Europe (0.1)% Europe: Growth supported by UK synergies
EBITDAaL
growth
Africa +14.0% Africa: Double-digit EBITDA CAGR
Group +4.5%
Disciplined Group +18% capital intensity Broadly stable capital intensity market-by-market
capital
allocation
c.3% cost of debt Targeting lower half of 2.25-2.75x Adj. EBITDAaL/net debt range
Double-digit organic growth in Adjusted FCF --> Euro growth in Adjusted FCF
Notes:
1. Medium-term financial ambition assume no material change to
the structure of the Group (at 31 March 2026), is based on current prevailing
assessments of the macroeconomic outlook, including interest rates and
inflation, and is at constant foreign exchange rates.
2. Includes Europe, Shared Operations and Corporate services,
and committed UK cost synergies. The majority of the previously disclosed
£700 million cost & capex synergies is expected to be opex savings.
3. Restructuring and integration costs in FY27 are expected to
peak at c.€0.7 billion, which includes integration costs of c.€0.4 billion
related to the VodafoneThree merger.
- Shareholder returns: Over the last three years, our progress has
driven attractive shareholder returns, with double-digit growth in Adjusted
free cash flow per share (FY24-FY26). We have also committed to a progressive
dividend policy, with the full year dividend per share for FY26 growing by
2.5%, reflecting our growth outlook. We have also returned €4 billion to
shareholders through share buybacks over the last two years.
A more detailed summary of our progress and is outlined in an accompanying
presentation and video available here: investors.vodafone.com/results.
Portfolio
VodafoneThree integration
On 31 May 2025, we completed the merger of Vodafone UK and Three UK. Full
details of the transaction can be found here: Completion of Vodafone and Three
merger in the UK
(https://investors.vodafone.com/~/media/files/v/vodafone-ir/documents/performance/financial-results/2024/merger-of-vodafone-uk-and-three-uk-13-june-2023-vodafone.pdf)
.
On 5 May 2026, we announced that Vodafone had reached an agreement for the
buyout of CK Hutchison Group Telecom Holding Limited (CKHGT) from the
VodafoneThree joint venture for £4.3 billion (€4.9 billion) via a
cancellation of shares (the 'Transaction'). Following completion of the
Transaction, Vodafone will become the sole owner of VodafoneThree.
VodafoneThree is now the biggest mobile network operator in the UK with over
28 million customers, with a multi-brand mobile strategy in Consumer through
the Vodafone, Three, VOXI, SMARTY and Talkmobile brands.
Since the merger of Vodafone UK and Three UK last year, we have made a fast
start with the integration including significant network improvements as part
of our promise to deliver a best-in-class experience, and we have taken
actions on key areas of cost synergies to deliver the first material impacts
in FY27. Network sharing activation is ahead of plan, with both Vodafone and
Three customers already benefiting from seamlessly using both networks across
10,000 radio sites ahead of plan. Seven million Three and SMARTY customers are
also benefiting from improved 4G speeds of up to 40%, through sharing of
combined spectrum.
This strong start to the integration means we are now even more confident on
delivering our plans to create one of Europe's leading telecoms networks,
which include expecting to realise £700 million annual cost and capital
expenditure synergies by FY30. We believe now is the right time to take full
ownership of VodafoneThree, enabling us to move at an even faster pace to
transform the UK's digital infrastructure and realise value for our
shareholders.
Romania
On 1 October 2025, we completed the acquisition of Telekom Romania Mobile
Communications S.A ('TKRM') for €30 million. This transaction strengthens
our position in the market, increasing both our local scale and unlocking
significant synergy benefits. We acquired TKRM and its postpaid customer base,
while Digi Romania S.A. acquired TKRM's prepaid customer business. We also
gained additional spectrum and towers as part of the transaction. The
integration is well underway, and we have completed the migration of 250,000
customers to Vodafone contracts and combined over 350 radio sites.
Africa
In November 2025, the Independent Communications Authority of South Africa,
approved Vodacom's proposed fibre joint venture with Maziv Proprietary Limited
and the transaction closed on 2 December 2025. This transaction increases the
scale of the country's open access fibre platform and strengthens our fixed
growth prospects in South Africa.
In December 2025, we announced that Vodacom Group Limited had agreed to
acquire an effective 20% of the issued share capital in Safaricom Plc, Kenya's
leading telecoms operator. Vodacom will acquire 15% from the Government of
Kenya for a cash consideration of €1.36 billion (KES 204 billion) and 5%
from Vodafone for a cash consideration of €0.45 billion (KES 68 billion).
Following completion of the acquisition, Safaricom will be owned by Vodacom
(55%), the Government of Kenya (20%) and public investors (25%). Safaricom
will be consolidated by both Vodacom and Vodafone Group. The acquisition
provides both Vodafone and Vodacom with an opportunity to gain controlling
ownership of one of Africa's most successful telecoms and financial services
businesses.
The acquisition is subject to a status quo order issued by the High Court of
Kenya on 23 March 2026, following an application for conservatory order which
was subsequently heard on 27 April 2026. A ruling is expected on 18 May 2026.
Pending this ruling, the acquisition will be effective upon the satisfaction
of all conditions precedent and completion of the relevant share purchase
agreements.
Financial Review ⫶ Results in line with expectations
Financial results
- Total revenue: Increased 8.0% to €40.5 billion (FY25: €37.4
billion), due to strong service revenue growth and the consolidation of Three
UK, partially offset by foreign exchange movements.
- Service revenue: Grew 8.8% to €33.5 billion (FY25: €30.8 billion)
and on an organic basis increased 5.4% with growth in all segments except
Germany. Vodafone Business grew 2.2% in FY26, and 3.2% on an organic basis,
with double-digit growth in digital services revenue.
- Adjusted EBITDAaL: Increased 3.8% to €11.4 billion (FY25: €10.9
billion), and 4.5% on an organic basis, as service revenue growth was only
partially offset by continued commercial investment.
- Operating profit: Increased by €3.2 billion to €2.8 billion (FY25:
loss of €0.4 billion), due to Adjusted EBITDAaL growth and non-cash
impairment charges in the prior year, partially offset by higher depreciation
and amortisation following the consolidation of Three UK.
- Earnings per share: Basic loss per share from continuing operations
was 1.20 eurocents in FY26, compared to a loss per share of 15.86 eurocents in
the prior year, following the impairment charges in FY25. Adjusted basic
earnings per share was 10.72 eurocents compared to 7.87 eurocents in the prior
year.
FY26(1) FY25 Reported
€m €m change %
Revenue 40,461 37,448 8.0
- Service revenue 33,480 30,758 8.8
- Other revenue 6,981 6,690
Adjusted EBITDAaL(2,3) 11,351 10,932 3.8
Restructuring costs (370) (164)
Interest on lease liabilities(4) 615 488
Gain/(loss) on disposal of property, plant and equipment and intangible assets 199 (25)
Depreciation and amortisation of owned assets (8,481) (7,569)
Share of results of equity accounted associates and joint ventures (382) (123)
Impairment charge - (4,515)
Other (expense)/income (88) 565
Operating profit/(loss) 2,844 (411) 792.0
Investment and other income 1,395 864
Financing costs (2,375) (1,931)
Profit/(loss) before taxation 1,864 (1,478)
Income tax expense (1,805) (2,246)
Profit/(loss) for the financial year - Continuing operations 59 (3,724)
Loss for the financial year - Discontinued operations (108) (22)
Loss for the financial year (49) (3,746)
Attributable to:
- Owners of the parent (397) (4,169)
- Non-controlling interests 348 423
Loss for the financial year (49) (3,746)
Basic loss per share - Continuing operations (1.20)c (15.86)c
Basic loss per share - Total Group (1.65)c (15.94)c
Adjusted basic earnings per share(2) 10.72c 7.87c
Further information is available in a spreadsheet at
investors.vodafone.com/results
Notes:
1. The FY26 results reflect average foreign exchange rates of €1: GBP
0.87, €1: ZAR 20.10, €1: TRY 48.02 and €1: EGP 56.60.
2. Adjusted EBITDAaL and Adjusted basic earnings per share are non-GAAP
measures. See page 37 for more information.
3. Includes depreciation on leased assets of €3,674 million (FY25:
€3,205 million).
4. Reversal of interest on lease liabilities included within Adjusted
EBITDAaL under the Group's definition of that metric, for re-presentation in
financing costs.
Cash flow, funding & dividend
- Cash from operating activities: Decreased 7.0% to €14.3 billion,
reflecting cash inflows from discontinued operations in the prior year.
- Adjusted free cash flow: An inflow of €2.6 billion versus an inflow
of €2.5 billion the prior year, reflecting an increase in Adjusted EBITDAaL
and foreign exchange movements.
- Net debt: Increased to €25.4 billion (€22.4 billion as at 31 March
2025), primarily due to the consolidation of VodafoneThree debt upon
completion of the transaction and the share buyback of €2 billion.
- Current liquidity: Cash and cash equivalents and short-term
investments totalled €12.4 billion (€16.3 billion as at 31 March 2025).
This includes €0.5 billion of net collateral which has been posted to
Vodafone from counterparties as a result of positive mark-to-market movements
on derivative instruments (€1.3 billion as at 31 March 2025).
- Shareholder returns: Total dividends per share are 4.6125 eurocents in
FY26 (FY25: 4.5 eurocents) including a final dividend per share of 2.3625
eurocents. The ex-dividend date for the final dividend is 4 June 2026 for
ordinary shareholders, and 5 June 2026 for ADR holders. The record date is 5
June 2026, and the dividend is payable on 30 July 2026. The capital returned
to shareholders in FY26 totalled €3.1 billion.
FY26 FY25 Reported
Cash flow and funding €m €m change %
Inflow from operating activities 14,291 15,373 (7.0)
(Outflow)/inflow from investing activities (4,238) 4,759 (189.1)
Outflow from financing activities (11,806) (15,278) 22.7
Net cash (outflow)/inflow (1,753) 4,854 (136.1)
Cash and cash equivalents at the beginning of the financial year 10,893 6,114
Exchange loss on cash and cash equivalents (227) (75)
Cash and cash equivalents at the end of the financial year 8,913 10,893
Borrowings less cash and cash equivalents (43,654) (42,142) (3.6)
FY26 FY25 Reported
€m €m change %
Adjusted free cash flow(1,2) 2,621 2,548 2.9
Licences and spectrum (404) (421)
Restructuring costs including working capital movements (213) (246)
Integration capital additions (209) (31)
Free cash flow(1) 1,795 1,850 (3.0)
Net debt(1) (25,411) (22,397) (13.5)
Notes:
1. Adjusted free cash flow, Free cash flow and Net debt are non-GAAP
measures. See page 37 for more information.
2. Discontinued operations generated a cashflow of €nil million during
the year ended 31 March 2026 (FY25: €40 million), in addition to the
reported total from continuing operations.
Outlook & capital allocation
FY27 guidance
In May 2025, we set out guidance for FY26 for Adjusted EBITDAaL and Adjusted
free cash flow. For FY26 we reported Adjusted EBITDAaL and Adjusted Free cash
flow of €11.4 billion and €2.6 billion. The FY26 outcome, as reported,
reflects the foreign exchange rate movements versus those used for the basis
of guidance and the impact of Türkiye hyperinflation accounting, which in
aggregate, reduced Adjusted EBITDAaL by €0.2 billion. The table below
compares the guidance given and our actual performance.
The current macroeconomic climate represents specific uncertainties,
particularly around trade, energy costs and foreign exchange rates, all of
which may impact our financial performance in the year ahead. Based on the
current prevailing assessments of the macroeconomic outlook, Adjusted EBITDAaL
is expected to be €11.9-€12.2 billion and Adjusted free cash flow to be
€2.6-€2.9 billion, as outlined below. For FY27, we are also providing
additional outlook for Europe and expect Adjusted EBITDAaL to be €7.6-€7.9
billion. Restructuring and integration costs in FY27 are expected to peak at
c.€0.7 billion, which includes integration costs of c.€0.4 billion related
to the VodafoneThree merger. For further information please refer to the
accompanying presentation available here: investors.vodafone.com/results.
€billion Adjusted EBITDAaL(1) Adjusted
FCF(1,2)
FY26 guidance 11.3 - 11.6 2.4 - 2.6
FY26 outcome - guidance basis(3,4) 11.6 2.6
Impact of exchange rates (0.1) -
Impact of Türkiye hyperinflation accounting (0.1) -
FY26 actual - reported basis 11.4 2.6
Impact of exchange rates (0.1) (0.1)
Remove impact of Türkiye hyperinflation accounting 0.1 -
Impact of M&A transactions(5) - (0.1)
FY27 re-based(4,6) 11.4 2.4
Growth 0.5 - 0.8 0.2 - 0.5
FY27 guidance(4,7) 11.9 - 12.2 2.6 - 2.9
Safaricom consolidation impact - pro-forma 12 months FY27 1.5 -
Notes:
1. Adjusted EBITDAaL and Adjusted free cash flow are non-GAAP measures. See
page 37 for more information.
2. Adjusted free cash flow is Free cash flow before licences and spectrum,
restructuring costs arising from discrete restructuring plans, integration
capital additions, working capital related items and M&A.
3. The FY26 outcome on guidance basis is derived by applying FY26 guidance
foreign exchange rates. The FY26 guidance foreign exchange rates were €1:
GBP 0.85; €1: ZAR 20.59; €1: TRY 43.42; €1: EGP 56.74.
4. Excluding the impact of hyperinflation accounting in Türkiye.
5. M&A transactions include the impact of the disposal of VodafoneZiggo.
6. The FY26 rebased outcome is derived by applying FY27 guidance foreign
exchange rates.
7. The FY27 guidance reflect the following foreign exchange rates: €1: GBP
0.87; €1: ZAR 19.60; €1: TRY 53.07; €1: EGP 62.53. The guidance assumes
no material change to the structure of the Group.
Capital allocation
In March 2024, we conducted a broad capital allocation review, considering the
Group's strategy within its reshaped footprint.
- Investment: Following an extensive review of our capital
investment requirements, the current capital intensity will be broadly
maintained at a market level, which will allow for appropriate investment in
network and growth opportunities.
- Leverage: The current leverage policy of 2.25x - 2.75x Net Debt to
Adjusted EBITDAaL was adopted in 2024, with a target to operate in the bottom
half of the range. The leverage policy supports a solid investment grade
credit rating and positions Vodafone to continue to invest for growth over the
long-term.
- Shareholder returns (dividends): The Board has declared total
dividends of 4.6125 eurocents per share for FY26 (FY25: 4.5 eurocents),
reflecting a 2.5% year-on-year increase in line with our commitment to a
progressive dividend policy announced in November 2025.
- Shareholder returns (share buybacks): The final tranche of the
second €2 billion share buyback programme completed on 11 May 2026. Since
the launch of the first share buyback programme in March 2024, we have
repurchased 4.2 billion shares. Total capital returns to shareholders in FY26
were €3.1 billion.
Segment performance
Geographic performance summary
Total revenue Service revenue Adjusted EBITDAaL(1) Adjusted EBITDAaL margin(1) Capital additions
FY26 FY25 FY26 FY25 FY26 FY25 FY26 FY25 FY26 FY25
€m €m €m €m €m €m % % €m €m
Germany 12,133 12,180 10,874 10,876 4,243 4,384 35.0 36.0 2,496 2,482
UK 9,192 7,069 7,597 5,887 1,881 1,558 20.5 22.0 1,388 897
Other Europe(2) 5,714 5,694 4,888 4,805 1,574 1,510 27.5 26.5 860 856
Türkiye 3,431 3,086 2,826 2,484 983 842 28.7 27.3 539 447
Africa 8,365 7,791 6,653 6,172 2,834 2,593 33.9 33.3 1,185 1,038
Common Functions(3) 1,825 1,817 763 663 (164) 45 823 1,142
Eliminations (199) (189) (121) (129) - - - -
Group 40,461 37,448 33,480 30,758 11,351 10,932 28.1 29.2 7,291 6,862
Downloadable performance information is available at:
investors.vodafone.com/results
Service revenue growth FY25 FY26
Q4 H2 Total Q1 Q2 H1 Q3 Q4 H2 Total
% % % % % % % % % %
Germany (6.0) (6.2) (5.0) (3.2) 0.5 (1.4) 0.7 2.0 1.4 -
UK 5.7 6.7 4.5 15.2 38.0 26.7 31.1 31.5 31.3 29.0
Other Europe(2) 1.1 1.7 1.8 0.3 0.1 0.2 3.5 3.0 3.3 1.7
Türkiye 15.2 50.4 42.3 22.1 18.7 20.3 (13.5) 36.9 8.5 13.8
Africa 8.8 6.4 3.7 7.3 8.4 7.9 8.2 7.3 7.7 7.8
Group 2.3 4.0 2.8 5.3 10.8 8.1 7.3 12.0 9.6 8.8
Organic service revenue growth(1) FY25 FY26
Q4 H2 Total Q1 Q2 H1 Q3 Q4 H2 Total
% % % % % % % % % %
Germany (6.0) (6.2) (5.0) (3.2) 0.5 (1.4) 0.7 1.3 1.0 (0.2)
UK 3.1 3.2 1.9 0.9 1.2 1.1 (0.5) (0.2) (0.4) 0.3
Other Europe(2) 0.8 1.7 2.1 0.2 (0.5) (0.1) 1.2 1.2 1.2 0.5
Türkiye 73.2 78.1 83.4 63.8 48.4 55.6 38.5 33.7 36.1 45.2
Africa 13.5 12.6 11.3 13.8 13.5 13.7 13.5 10.9 12.2 12.9
Group 5.4 5.3 5.1 5.5 5.8 5.7 5.4 5.1 5.2 5.4
Group profitability FY25 FY26
Q4 H2 Total Q1 Q2 H1 Q3 Q4 H2 Total
Operating (loss)/profit €m (3,815) (2,793) (411) 1,015 1,147 2,162 483 199 682 2,844
Adjusted EBITDAaL(1) €m 2,693 5,521 10,932 2,748 2,980 5,728 2,816 2,807 5,623 11,351
Adjusted EBITDAaL margin(1) % 28.8 28.8 29.2 29.3 29.1 29.2 26.9 27.0 27.0 28.1
Organic Adjusted EBITDAaL growth(1) % 0.3 1.3 2.5 4.9 8.7 6.8 2.3 2.3 2.3 4.5
Notes:
1. Organic service revenue growth, Group Adjusted EBITDAaL and Group
Adjusted EBITDAaL margin are non-GAAP measures. See page 37 for more
information.
2. Other Europe markets comprise Portugal, Ireland, Greece, Romania, Czech
Republic and Albania.
3. Comprises corporate functions and shared operations. Capital additions
includes software arrangements managed centrally on behalf of the Group.
Germany ⫶ Turnaround actions supporting service revenue improvement
32% €12.1bn (0.2%)
of Group service revenue Total revenue Organic service revenue growth
37% €4.2bn (3.3%)
of Group Adjusted EBITDAaL Adjusted EBITDAaL Organic Adjusted EBITDAaL growth
FY26 FY25 Reported Organic
€m €m growth % growth %(1)
Total revenue 12,133 12,180 (0.4)
- Service revenue 10,874 10,876 - (0.2)
- Other revenue 1,259 1,304
Adjusted EBITDAaL 4,243 4,384 (3.2) (3.3)
Adjusted EBITDAaL margin 35.0% 36.0%
Note:
1. Organic growth is a non-GAAP measure. See page 37 for more information.
Growth
Total revenue decreased 0.4% to €12.1 billion as a result of lower equipment
revenue. Service revenue remained stable, supported by the acquisition of
Skaylink. On an organic basis, service revenue declined 0.2% (Q3: 0.7%, Q4:
1.3%), including a 0.8 percentage point impact from the end of bulk TV
contracting in Multi-Dwelling Units ('MDU'). Excluding this impact, organic
service revenue was driven by higher wholesale revenue and strong demand for
digital services in Business, offset by mobile ARPU pressure due to
competitive intensity and ongoing TV decline.
Mobile service revenue grew 3.0% (Q3: 2.8%, Q4: 2.7%), supported by higher
wholesale revenue, as we completed the migration of 1&1 customers onto our
network, partially offset by continued ARPU pressure, and a lower customer
base. We now have more than 12 million 1&1 customers using our nationwide
5G network and revenue contribution reached full run-rate in Q4.
Fixed service revenue decreased 2.6%, and on an organic basis declined 2.9%
(Q3: -1.1%, Q4: 0.1%), as TV headwinds were partially offset by strong demand
for digital services in Business. The final impact of the MDU TV transition in
Q1 contributed 1.4 percentage points to the decline in fixed service revenue
in FY26. The continued improvement in quarterly trends in Q4 was supported by
our broadband retail pricing actions, implemented between March 2025 and
January 2026, and Business digital services growth. As we continue to focus on
our value approach, broadband ARPU from new customers grew over 30%
year-on-year in Q4 (Q3: +21%).
Vodafone Business service revenue increased 0.1%. On an organic basis,
Vodafone Business service revenue declined 0.7% (Q3: -1.8%, Q4: 1.5%), due to
pressure in core connectivity services, partially offset by strong digital
services demand, which supported our return to growth in Q4. In December 2025,
we completed the acquisition of Skaylink, a cloud, digital transformation and
security specialist. The acquisition will support the acceleration of our
growth in key areas, such as professional and managed services, cloud and
security in Germany and across Europe. We have successfully begun integrating
the business and selling their services to our customers.
Adjusted EBITDAaL declined 3.2%, and on an organic basis Adjusted EBITDAaL
decreased 3.3%, of which a -1.1 percentage point impact was related to the MDU
transition. Excluding this, the decline in Adjusted EBITDAaL was driven by the
continued impact of higher commercial investment in the prior year, and the
increase in variable costs from Business digital services, partially offset by
cost efficiency. The Adjusted EBITDAaL margin was 1.0 percentage points lower
year-on-year at 35.0%.
Customers
Due to continued competitive intensity in the mobile market, our contract
customer base declined by 103,000 during the year (Q3: 11,000, Q4: -77,000),
including 88,000 from Business. Our branded Consumer customer base was broadly
stable during the year, supported by our continued focus on customer
experience, as we delivered our best ever customer satisfaction results, with
improvement across all products in mobile and fixed. We connected a further
9.5 million IoT devices, driven by continued good demand from the automotive
sector.
Our broadband customer base declined by 202,000 in FY26 (Q3: -63,000, Q4:
-90,000), including the loss of 136,000 customers on our gigabit network (Q3:
-47,000, Q4: -59,000). The decline was primarily due to our focus on value
optimisation as we continue to drive ARPU growth for new customers. We
continue to be the largest provider of fixed line gigabit connectivity in
Germany, as we market gigabit speeds to almost 75% of German homes with 5
million fibre households beyond our own cable footprint of 25 million
households. Our OXG joint venture's buildout is continuing to progress with
almost 600,000 homes passed and we are now able to market to 1.5 million
homes. Our TV customer base declined by 20,000 (Q3: -6,000, Q4: -104,000). The
structural decline in demand for standalone linear TV services was partially
offset by our strategy to bundle basic TV with our broadband services.
UK ⫶ Fast integration progress and full ownership
23% €9.2bn 0.3%
of Group service revenue Total revenue Organic service revenue growth
17% €1.9bn 4.5%
of Group Adjusted EBITDAaL Adjusted EBITDAaL Organic Adjusted EBITDAaL growth
FY26 FY25 Reported Organic
€m €m growth % growth %(1)
Total revenue 9,192 7,069 30.0
- Service revenue 7,597 5,887 29.0 0.3
- Other revenue 1,595 1,182
Adjusted EBITDAaL 1,881 1,558 20.7 4.5
Adjusted EBITDAaL margin 20.5% 22.0%
Note:
1. Organic growth is a non-GAAP measure. See page 37 for more information.
Growth
Total revenue increased 30.0% to €9.2 billion due to the consolidation of
Three UK's financial results following the completion of the merger on 31 May
2025. Service revenue increased 29.0%, and organic service revenue grew 0.3%
(Q3: -0.5%, Q4: -0.2%), as growth in Consumer and Wholesale, reflecting strong
commercial momentum during the year, was partially offset by decline in
Business.
Mobile service revenue increased 40.0%. Organic growth in mobile service
revenue was -0.4% (Q3: -1.8%, Q4: -0.5%), as the continued Business ARPU
pressure and delivery of project milestones in the prior year, were only
partially offset by strong wholesale revenue growth. The improvement in Q4
growth was supported by stronger performance of Three UK brand, with
improvement in both Consumer contract ARPU and customer loyalty, as well as
higher wholesale revenue.
Fixed service revenue increased 0.3% and organic growth in fixed service
revenue was 3.1% (Q3: 4.8%, Q4: 0.8%) with strong growth in Consumer
broadband, supported by higher ARPU and a larger customer base, partially
offset by a decline in Business due to the impact of planned managed services
contract terminations. The slowdown in service revenue growth in the fourth
quarter was due to lower Business project activity, including a strategic
change by a large customer.
Vodafone Business service revenue declined 2.3%. On an organic basis, Vodafone
Business service revenue decreased 4.5% (Q3: -5.4%, Q4: -7.8%), due to the
impact of planned managed services contract terminations during FY26 and
continued mobile ARPU pressure from lower inflation-linked price increases and
contract renewals. There was also lower Business project activity, including a
strategic change by a large customer.
Adjusted EBITDAaL increased 20.7%, and on an organic basis, Adjusted EBITDAaL
increased 4.5%, driven by strong Consumer broadband and Wholesale margin
growth, only partially offset by higher operating expenses from inflation and
network expansion. The Adjusted EBITDAaL margin decreased 1.5 percentage
points year-on-year to 20.5%, and on an organic basis grew 1.4 percentage
points year-on-year.
Customers
Our mobile contract customer base declined by 127,000 during the year (Q3:
73,000, Q4: 22,000) including the disconnection of 53,000 very low value
Business SIMs and Three UK customer losses. Our best-in-class customer
experience supported customer loyalty, which materially improved across all
our Consumer brands during the year. Our prepaid brands, VOXI and SMARTY,
continued to compete well in the market with 189,000 customer additions in
FY26 (Q3: 38,000, Q4: 47,000).
Our broadband customer base increased by 222,000 in FY26 (Q3: 64,000, Q4:
64,000) and we added 56,000 fixed wireless access customers in FY26 (Q3:
11,000, Q4: 20,000), reported in the mobile segment. We have been one of the
fastest growing broadband providers in the UK during the year, offering
gigabit speeds to over 23 million households. In June 2025, we announced a
wholesale strategic agreement with Community Fibre in London.
In July 2025, we launched our industry leading 'Just Ask Once' customer care
promise for Vodafone customers. In November 2025, we introduced our 'Vodafone
Together Family' plan, which enables households to combine mobile and
broadband services and rewards, alongside 'Vodafone Secure Net', our market
leading security platform. In April 2026, we launched our '5G Slicing'
proposition for business customers, delivering enhanced and dependable mobile
connectivity with guaranteed performance for enterprises, as a part of our
strategy to further monetise our network differentiation.
Other Europe(1) ⫶ Strong Business momentum
15% €5.7bn 0.5%
of Group service revenue Total revenue Organic service revenue growth
14% €1.6bn 3.7%
of Group Adjusted EBITDAaL Adjusted EBITDAaL Organic Adjusted EBITDAaL growth
FY26 FY25 Reported Organic
€m €m growth % growth %(2)
Total revenue 5,714 5,694 0.4
- Service revenue 4,888 4,805 1.7 0.5
- Other revenue 826 889
Adjusted EBITDAaL 1,574 1,510 4.2 3.7
Adjusted EBITDAaL margin 27.5% 26.5%
Notes:
1. Other Europe markets comprise Portugal, Ireland, Greece, Romania, Czech
Republic and Albania.
2. Organic growth is a non-GAAP measure. See page 37 for more information.
Growth
Total revenue increased 0.4% to €5.7 billion, supported by the consolidation
of Telekom Romania Mobile Communications S.A following the completion of the
acquisition in October 2025. Service revenue grew 1.7% and organic growth in
service revenue was 0.5% (Q3: 1.2%, Q4: 1.2%) as growth in Albania, Czech
Republic, Ireland and Greece was partially offset by continued ARPU pressure
in Portugal.
In Portugal, service revenue declined during the year as a result of mobile
ARPU pressure, due to competitive intensity in the market following the launch
of a fourth operator. Growth in fixed line service revenue was more than
offset by a decline in mobile. In January 2026, we announced pricing actions
across our Consumer and Business portfolios, which are expected to support
ARPU trends in the year ahead.
In Ireland, service revenue increased in FY26, driven by strong growth in
fixed service revenue, supported by a higher customer base and ARPU growth.
Our focus on customer experience supported a strong improvement in Consumer
customer satisfaction scores and we are now market leader.
In Greece, service revenue increased during the year as a result of growth in
mobile and fixed service revenue, with good demand for our Business digital
services from the public sector. Growth in mobile was supported by contract
customer base and ARPU growth.
Vodafone Business service revenue increased 0.6% with organic growth of 3.0%
(Q3: 4.7%, Q4: 6.8%) mainly driven by strong demand for digital services,
particularly in Greece and Romania.
Adjusted EBITDAaL increased 4.2% and on an organic basis increased 3.7%, due
to service revenue growth and our cost actions, supported by a legal one-off
in Portugal, partially offset by provisions in Greece. The Adjusted EBITDAaL
margin increased by one percentage point year-on-year to 27.5%, and on an
organic basis grew 1.5 percentage points year-on-year.
Customers
We added 115,000 mobile contract customers during the year (Q3: 80,000, Q4:
-68,000) across our six markets, despite the disconnection of 115,000 inactive
SIMs in Romania and Greece. Our broadband customer base declined 12,000 (Q3:
4,000, Q4: -20,000). In Romania, we lost 253,000 mobile contract customers,
and 25,000 broadband customers in FY26. In Portugal, we added 162,000 contract
customers in mobile and 13,000 in fixed broadband. In Greece, the mobile
contract base grew by 37,000, though the broadband customer base declined by
14,000. In Ireland, our mobile contract customer base remained broadly stable,
and the customer broadband base grew by 16,000. Through our wholesale
partnerships, including our fibre joint venture, SIRO, we now cover 1.9
million households in Ireland with our gigabit speeds.
Türkiye ⫶ Scaling to €1 billion Adjusted EBITDAaL
8% €3.4bn 45.2%
of Group service revenue Total revenue Organic service revenue growth
9% €1.0bn 47.6%
of Group Adjusted EBITDAaL Adjusted EBITDAaL Organic Adjusted EBITDAaL growth
FY26 FY25 Reported Organic
€m €m growth % growth %(1)
Total revenue 3,431 3,086 11.2
- Service revenue 2,826 2,484 13.8 45.2
- Other revenue 605 602
Adjusted EBITDAaL 983 842 16.7 47.6
Adjusted EBITDAaL margin 28.7% 27.3%
Note:
1. Organic growth is a non-GAAP measure. See page 37 for more information.
Türkiye was designated as a hyperinflationary economy on 1 April 2022 in line
with IAS 29 'Financial Reporting in Hyperinflationary Economies'. See note 1
'Basis of preparation' in the unaudited condensed consolidated financial
statements for further information.
Organic growth metrics exclude the impact of the hyperinflation adjustment and
foreign exchange translation in Türkiye. See page 38 for more information.
Growth
Total revenue increased 11.2% to €3.4 billion, with service revenue growth
partially offset by depreciation of the local currency versus the euro.
Service revenue increased 45.2% (Q3: 38.5%, Q4: 33.7%) on an organic basis. As
reported under IAS 29, service revenue growth in euro terms increased 13.8%
(Q3: -13.5%, Q4: 36.9%). Excluding the impact of hyperinflationary accounting
adjustments, service revenue increased 10.8% in euro terms (Q3: 3.7%, Q4:
-0.2%), driven by ongoing price actions, value accretive base management,
increased data usage and strong growth in Business. The slowdown in the last
quarter was anticipated and reflects a phasing of price actions in the context
of moderating inflation.
Vodafone Business service revenue increased 54.0% (Q3: 54.8%, Q4: 34.5%) on an
organic basis, supported by growth in mobile and fixed connectivity, and
strong demand for our digital services products, including data centre usage.
Adjusted EBITDAaL increased 47.6% on an organic basis, supported by service
revenue growth and ongoing digitalisation. Adjusted EBITDAaL increased 16.7%
in euro terms. The Adjusted EBITDAaL margin increased 1.4 percentage points
year-on-year to 28.7%.
Customers
We added 926,000 mobile contract customers during the year, including
migrations of prepaid customers. Through our ongoing customer experience
initiatives, we have seen a 1.6 percentage points reduction in our share of
deep detractors to its lowest ever level.
Spectrum & 5G launch
In October 2025, Vodafone Türkiye successfully acquired a total of 100 MHz of
spectrum in the country's 5G auction, for US$627 million (€539 million).
Payments will be phased equally over three financial years. We also renewed
all of our existing spectrum holdings, which were due to expire in 2029, until
2042.
Vodafone Türkiye launched 5G services in April 2026, and has the widest 5G
coverage in the country, covering over 30,000km(2) across the 81 provinces.
Africa ⫶ Good growth across all markets
20% €8.4bn 12.9%
of Group service revenue Total revenue Organic service revenue growth
25% €2.8bn 14.0%
of Group Adjusted EBITDAaL Adjusted EBITDAaL Organic Adjusted EBITDAaL growth
FY26 FY25 Reported Organic
€m €m growth % growth %(1)
Total revenue 8,365 7,791 7.4
- Service revenue 6,653 6,172 7.8 12.9
- Other revenue 1,712 1,619
Adjusted EBITDAaL 2,834 2,593 9.3 14.0
Adjusted EBITDAaL margin 33.9% 33.3%
Note:
1. Organic growth is a non-GAAP measure. See page 37 for more information.
Growth
Total revenue increased 7.4% to €8.4 billion as higher service revenue was
partially offset by the depreciation of local currencies versus the euro.
Service revenue increased 7.8% and organic service revenue growth was 12.9%
(Q3: 13.5%, Q4: 10.9%), with growth in all of Vodacom's markets.
In South Africa, service revenue increased primarily driven by growth in
mobile contract segment, supported by price increases and strong demand for
our Business digital services. The step-up in Q4 service revenue growth was
supported by improvement in prepaid, due to the acceleration in mobile data
usage. Financial services performed well with organic growth of 8.1% to €185
million, supported by demand for insurance products.
In Egypt, service revenue increased well above inflation and in euro terms,
driven by customer base growth and strong data demand. The slowdown in Q4
service revenue growth, as anticipated, was due to the strong prior year
comparative which benefitted from the implementation of price increases in
line with higher regulatory price floors. Our financial services product,
Vodafone Cash continued to grow at a strong rate with revenue increasing by
48.2% on an organic basis to €157 million.
In Vodacom's international markets, service revenue growth was supported by
strong demand for data and an acceleration of M-Pesa revenue. We delivered
strong growth in Tanzania and the DRC during the year, and Mozambique returned
to growth during FY26. M-Pesa revenue increased 23.1% on an organic basis to
€494 million and now represents 29.7% of service revenue.
Vodacom Business service revenue grew 6.9% with organic growth of 11.3% (Q3:
12.3%, Q4: 11.0%), driven by strong demand for our digital services, including
IoT.
Adjusted EBITDAaL increased 9.3% as the depreciation of local currencies was
more than offset by organic growth. On an organic basis, Adjusted EBITDAaL
increased 14.0% due to service revenue growth, ongoing cost initiatives, and
the lapping of prior year one-off impacts in the DRC. This was partially
offset by a non-recurring lease accounting adjustment in H2 and a one-off cost
in H1 in South Africa. The Adjusted EBITDAaL margin increased 0.6 percentage
points year-on-year to 33.9%.
Customers
In South Africa, we added 28,000 mobile contract customers during the year. We
now have a mobile contract customer base of 7.0 million and Prepaid customer
base of 42.4 million. Across our active customer base, 74.1% of our mobile
customers use our data services. Customers using our Vodapay super-app
continued to grow, with good demand for our insurance, payments and lending
marketplace services. In Egypt, we added 423,000 mobile contract customers and
3.3 million prepaid customers, supported by our market-leading customer
experience and NPS leadership. In June 2025, we launched our 5G services
enabling high quality voice services and supporting the rapidly growing data
demand in Egypt. Our financial services product, Vodafone Cash, reached 14.7
million customers, including 3.3 million new users during the year. In
Vodacom's international markets, we added 7.1 million mobile customers in
FY26, and our customer base is now 67.1 million, with 67.2% of active mobile
customers using our data services. Our M-Pesa customer base increased by 4.1
million during the year and now totals 29.3 million active users.
Spectrum
In February, we announced that Vodafone Egypt secured 2 x 10MHz of 1,800MHz
spectrum as a part of a multi-year investment programme. The spectrum payment
will be settled in four annual payments, which commenced in FY26 with US$100
million (€84 million). The next phase of the programme is expected to
commence in FY28 and conclude by FY32 for the allocation of 3,500MHz spectrum,
and renewal of the existing 2,600MHz spectrum.
Vodafone Investments
Associates and joint ventures FY26 FY25
€m €m
Vantage Towers (Oak Holdings 1 GmbH) (440) (74)
VodafoneZiggo Group Holding B.V. (95) (125)
Safaricom Limited 256 201
Other(1) (including TPG Telecom Limited) (103) (125)
Share of results of equity accounted associates and joint ventures (382) (123)
Notes:
1. The Group's investment in Vodafone Idea Limited ('VIL') was reduced to
€nil in the year ended 31 March 2020 and the Group has not recorded any
profit or loss in respect of its share of VIL's results since that date.
2. Excluding the economic benefit of 50% of Telenet's shareholding in the
fibre-to-the-home network infrastructure vehicle Wyre B.V., which will be
retained by Liberty Global.
Vantage Towers Joint Venture - 44.7% ownership
Total revenue increased 6.4% to €1.3 billion during the year, supported by
473 net new tenancies and 891 new macro sites. As a result, the tenancy ratio
increased to 1.55x (FY25: 1.53x). Vodafone's share of the results was driven
by a non-cash impairment charge of €464 million of their investment in
INWIT, as a result of a decline in its share price. During the year, Vantage
Towers distributed €312 million in dividends to Vodafone.
VodafoneZiggo Joint Venture (Netherlands) - 50.0% ownership
In February 2026, we announced that we agreed to sell our interests in
VodafoneZiggo to Liberty Global for €1.0 billion in cash and a 10% equity
stake in a soon-to-be-formed Benelux entity (Ziggo Group), which will own 100%
of both VodafoneZiggo and Liberty Global's Belgian subsidiary, Telenet Group
Holding(2). Consequently, the Group's investment in VodafoneZiggo was
classified as held for sale from this date. The transaction is subject to the
receipt of customary approvals and regulatory clearances and is expected to
complete in the second half of 2026.
Vodafone's share of net loss in the period was €95 million, driven by lower
operating income. During the year, Vodafone received €62 million in
dividends and €51 million in interest payments from the joint venture.
Safaricom Associate (Kenya) - 27.8% ownership
In December 2025, we announced that Vodacom Group Limited had agreed to
acquire a further effective 20% of the issued share capital in Safaricom PLC,
Kenya's leading telecoms operator. Vodacom will acquire 15% from the
Government of Kenya for a cash consideration of €1.36 billion and 5% from
Vodafone for a cash consideration of €0.45 billion. Following completion of
the acquisition, Safaricom will be owned by Vodacom (55%), the Government of
Kenya (20%) and public investors (25%). Once the transaction completes,
Safaricom will be consolidated by both Vodacom and Vodafone Group.
Safaricom service revenue grew 3.2% to €2.8 billion, with organic growth of
11.1% partially offset by foreign exchange movements of the Kenyan shilling
versus the euro. Vodafone's higher share of results was due to a strong result
in Kenya and lapping a prior year currency devaluation in Ethiopia. During the
year, Vodafone received €160 million in dividends from Safaricom.
TPG Telecom Limited Associate (Australia) - 23.7% ownership
TPG Telecom Limited is a fully integrated telecommunications operator in
Australia and is listed on the Australian stock exchange. The Group owns an
equivalent economic interest of 23.7%, via an 11% direct stake in TPG and a
13% indirect stake, held through a 50:50 joint venture with CK Hutchison.
In July 2025, TPG completed the sale of Vocus, its fixed line business, and in
November 2025 returned A$3 billion cash to shareholders, with Vodafone
receiving A$748 million for its share via a capital return and special
dividend. Vodafone and CK Hutchison agreed to reinvest the funds to its 50:50
joint venture for the purpose of repaying A$1.4 billion of its multicurrency
loan facility. Subsequently, the Group provides guarantees amounting to US$0.5
billion and €0.6 billion (FY25: US$1.0 billion and €0.6 billion) in
relation to its 50% share in the loan facility. During FY26, Vodafone received
€22 million in dividends from its direct stake in TPG.
Vodafone Idea Limited Joint Venture (India) - 16.1% ownership
In March 2025, Vodafone Idea announced that the government had agreed to
convert US$4.3 billion of its outstanding spectrum dues to equity. The Group's
shareholding in Vodafone Idea Limited was subsequently diluted to 16.1% in
April 2025. As part of the agreement to merge Vodafone India and Idea Cellular
in 2017, the parties agreed a mechanism for payments (the 'CLAM indemnity')
between the Group and Vodafone Idea Limited ('VIL') under which the Group
would reimburse VIL in the event of the crystallisation and payment of certain
identified contingent liabilities. On 31 December 2025 the Group reached an
agreement with VIL to settle the Group's obligations under the CLAM. See page
33 for more information.
Net financing costs
FY26 FY25 Reported
€m €m change %
Investment and other income 1,395 864
Financing costs (2,375) (1,931)
Net financing costs (980) (1,067) 8.2
Adjustments for:
Mark-to-market losses/(gains) 217 (2)
Foreign exchange (gains)/losses (56) 1
Fair value gains on Other Investments through profit and loss - (247)
Adjusted net financing costs(1) (819) (1,315) 37.7
Note:
1. Adjusted net financing costs is a non-GAAP measure. See page 37 for
more information.
Adjusted net financing costs decreased by €496 million, mainly as a result
of the gain of €771 million (2025: €253 million) from the redemption of
certain bonds that were bought back in advance of their maturity dates.
Net financing costs decreased by €87 million as the impact of the gain on
bond buyback was partially offset by the mark-to-market losses on derivatives
of €217 million (2025: €2 million net gains) and fair value gains on other
investments (nil in 2026, €247 million gain in 2025).
Taxation
FY26 FY25 Reported
% % change pps
Effective tax rate 96.8% (152.0)% 248.8
Adjusted effective tax rate(1) 28.1% 25.3% 2.8
Note:
1. Adjusted effective tax rate is a non-GAAP measure. See page 37 for more
information.
The Group's Effective tax rate ('ETR') for the year ended 31 March 2026 was
96.8% (FY25: -152.0%).
The ETR includes a €358 million derecognition of the net deferred tax assets
('DTAs') in the Group UK tax group, and a €305 million write-down of the
German DTAs as a result of enacted reductions to future tax rates. In
addition, the group has significant non-deductible costs related to M&A
activity.
The Group's Adjusted ETR ('AETR') for the year ended 31 March 2026 was 28.1%
(FY25: 25.3%). The AETR excludes certain items, including the €358 million
derecognition of the net DTAs in the Group UK tax group, the €305 million
German DTA write-down, the utilisation of the Luxembourg loss DTA, and the
impact of hyperinflation adjustments in Türkiye.
The BEPS Pillar Two Minimum Tax legislation was enacted in July 2023 in the UK
with effect from 2024. The Group has applied the temporary exception under IAS
12 in relation to the accounting for deferred taxes arising from the
implementation of the Pillar Two rules. The tax charge for the year ended 31
March 2026 includes a current tax charge of €9 million (2025: €7 million)
relating to Pillar Two income taxes.
Earnings per share
Reported
FY26 FY25 change
eurocents eurocents eurocents
Basic loss per share - Continuing operations (1.20) (15.86) 14.66c
Basic loss per share - Total Group (1.65) (15.94) 14.29c
Adjusted basic earnings per share(1) 10.72 7.87 2.85c
Note:
1. Adjusted basic earnings per share is a non-GAAP measure. See page 37
for more information.
Basic loss per share from continuing operations was 1.20 eurocents, compared
to a basic loss per share of 15.86 eurocents for FY25. The increase was
primarily due to a higher operating profit, and a lower income tax expense, as
well as a lower weighted average number of shares compared to the prior year.
Adjusted basic earnings per share was 10.72 eurocents, compared to 7.87
eurocents for FY25. The increase was primarily due to higher adjusted EBITDAaL
and lower adjusted net financing costs together with a lower number of shares
outstanding resulting from the share buyback programme.
Cash flow & funding
Analysis of cash flow
FY26 FY25 Reported
€m €m change %
Inflow from operating activities 14,291 15,373 (7.0)
(Outflow)/inflow from investing activities (4,238) 4,759 (189.1)
Outflow from financing activities (11,806) (15,278) 22.7
Net cash (outflow)/inflow (1,753) 4,854 (136.1)
Cash and cash equivalents at the beginning of the financial year 10,893 6,114
Exchange loss on cash and cash equivalents (227) (75)
Cash and cash equivalents at the end of the financial year 8,913 10,893
Cash inflow from operating activities decreased to €14,291 million,
reflecting cash inflows from discontinued operations in the prior year.
Outflow from investing activities increased by €8,997 million to €4,238
million, primarily due to proceeds from the disposals of 10% of Oak Holdings 1
GmBH (€1,336 million), 18% of Indus Towers Limited (€1,684 million) and
Vodafone Spain (€3,669 million) in the comparative period, which outweighed
lower cash outflows from discontinued operations, settlement in the current
year of redeemable preference shares provided by Zegona Communications Plc as
part of the disposal of Vodafone Spain and a higher net inflow in respect of
short-term investments. Short-term investments include highly liquid
government and government-backed securities and managed investment funds that
are in highly rated and liquid money market investments with liquidity of up
to 90 days.
Outflows from financing activities decreased by €3,472 million to €11,806
million resulting from lower repayment of borrowings, higher proceeds from the
issue of long-term borrowings, lower cash inflows from discontinued operations
and lower dividends paid, which were partly offset by higher payments in
respect of the purchase of treasury shares.
Analysis of cash flow (continued)
FY26 FY25 Reported
€m €m change %
Adjusted EBITDAaL(1) 11,351 10,932 3.8
Capital additions(2) (7,291) (6,862)
Working capital(3) 57 53
Disposal of property, plant and equipment and intangible assets 48 9
Integration capital additions (209) (31)
Restructuring costs including working capital movements(4) (213) (246)
Licences and spectrum (404) (421)
Interest received and paid(5,6) (1,119) (1,147)
Taxation (914) (728)
Dividends received from associates and joint ventures 557 530
Dividends paid to non-controlling shareholders in subsidiaries (245) (249)
Other 177 10
Free cash flow(1) 1,795 1,850 (3.0)
Acquisitions and disposals (2,715) 13,917
Equity dividends paid (1,093) (1,787)
Share buybacks (2,041) (1,868)
Foreign exchange loss (172) (182)
Other movements in net debt(6) 1,212 (1,085)
Net debt (increase)/decrease(1) (3,014) 10,845
Opening net debt(1) (22,397) (33,242)
Closing net debt(1) (25,411) (22,397) (13.5)
Free cash flow(1) 1,795 1,850
Adjustments:
- Licences and spectrum 404 421
- Restructuring costs including working capital movements(4) 213 246
- Integration capital additions 209 31
Adjusted free cash flow(1) 2,621 2,548
Notes:
1. Adjusted EBITDAaL, Free cash flow, Adjusted free cash flow and Net debt
are non-GAAP measures. See page 37 for more information.
2. See page 49 for an analysis of tangible and intangible additions in the
year.
3. Includes the impact of €128 million of Trade payables for which the
Group has extended payment terms from 30 to 90 days through the use of reverse
factoring at 31 March 2026 (31 March 2025: €148 million).
4. Includes working capital in respect of integration capital additions.
5. Interest received and paid excludes €577 million outflow (FY25:
€451 million outflow) in relation to the cash portion of interest on lease
liabilities included within Adjusted EBITDAaL.
6. Other movements in net debt for FY26 includes €771 million in
relation to gains on certain bonds bought back prior to their maturity date,
€974 million in relation to the settlement of redeemable preference shares
provided by Zegona Communications Plc as part of the disposal of Vodafone
Spain and €188 million in relation to a capital return from TPG Telecom
Limited, which outweighed a €520 million net issue of borrowings in respect
of licences arising principally from 5G spectrum acquired in Türkiye. Other
movements in net debt for FY25 includes a net outflow from discontinued
operations of €120 million and the repayment of borrowings secured against
Indian assets of €1,794 million (including €547 million of accrued
interest) following the disposal of the Group's interest in Indus Towers,
offset by payments from Swisscom and Zegona in respect of the future use of
the Vodafone brand of €491 million and €328 million in respect of proceeds
from the disposal of the Group's residual 3% interest in Indus Towers, which
was classified as an Other investment.
Adjusted free cash flow was an inflow of €2,621 million in the period,
representing an improvement of €73 million compared to the prior year. This
primarily reflects higher adjusted EBITDAaL and higher dividends received
which outweighed higher capital additions and taxation outflows.
Acquisitions and disposals include net debt acquired on the merger of Vodafone
and Three into VodafoneThree Holdings Limited ('VTHL') in the UK of €2,042
million and €410 million in relation to the acquisition of a 30% interest in
Maziv Proprietary Limited, offset by €348 million of equity funding
injected into VTHL by Hutchison.
Borrowings and cash position
FY26 FY25 Reported
€m €m change %
Non-current borrowings (45,506) (46,096)
Current borrowings (7,130) (7,047)
Borrowings (52,636) (53,143)
Cash and cash equivalents 8,982 11,001
Borrowings less cash and cash equivalents (43,654) (42,142) (3.6)
Borrowings include bonds of €33,828 million (31 March 2025: €36,402
million), lease liabilities of €12,388 million (31 March 2025: €10,826
million), cash collateral liabilities of €1,644 million (31 March 2025:
€2,357 million) and loans and other borrowings of €4,776 million (31 March
2025: €3,558 million).
The decrease in borrowings of €507 million was primarily driven by a
reduction in bonds (€2,574 million) as a result of the repayment of certain
bonds and foreign exchange rate movements, together with a reduction in
collateral liabilities (€713 million), which outweighed an increase in lease
liabilities (€1,562 million) arising primarily from the VodafoneThree merger
in the UK and an increase on other borrowings (€1,218 million) following a
preference share issuance in Vodacom (€404 million) and higher licence and
spectrum borrowings (€602 million), principally from 5G spectrum acquired in
Türkiye.
Funding position
FY26 FY25 Reported
€m €m change %
Bonds (33,828) (36,402)
Bank loans (1,383) (1,213)
Other borrowings including spectrum (3,393) (2,345)
Gross debt(1) (38,604) (39,960) 3.4
Cash and cash equivalents 8,982 11,001
Non-current investments in sovereign securities 915 913
Short-term investments(2) 3,431 5,280
Derivative and other financial instruments(3) 340 1,716
Net collateral liabilities(4) (475) (1,347)
Net debt(1) (25,411) (22,397) (13.5)
Notes:
1. Gross debt and Net debt are non-GAAP measures. See page 37 for more
information.
2. Short-term investments include €217 million (31 March 2025: €2,139
million) of highly liquid government and government-backed securities and
managed investment funds of €3,214 million (31 March 2025: €3,141 million)
that are in highly rated and liquid money market investments with liquidity of
up to 90 days.
3. Derivative and other financial instruments exclude derivative movements
in cash flow hedging reserves of €823 million gain (31 March 2025: €575
million gain).
4. Collateral arrangements on derivative financial instruments result in
cash being held as security. This is repayable when derivatives are settled
and is therefore deducted from liquidity.
Net debt increased by €3,014 million to €25,411 million. This was driven
by free cash flow of €1,795 million, together with an inflow from other
movements (€1,212 million), which was principally due to the settlement of
redeemable preference shares provided by Zegona Communications Plc as part of
the disposal of Vodafone Spain, offset by outflows in relation to acquisitions
and disposals (€2,715 million), mostly related to the merger with Three UK,
equity dividends (€1,093 million) and share buybacks (€2,041 million).
Other funding considerations include:
FY26 FY25
€m €m
Lease liabilities (12,388) (10,826)
Pension fund liabilities (206) (187)
Guarantees over loan issued by Australia joint venture (1,031) (1,479)
Equity characteristic of 50% attributed by credit rating agencies to 'Hybrid 3,797 4,081
bonds' included in net debt, EUR swapped value of €7,594 million (€8,162
million as at 31 March 2025)
The Group's gross and net debt includes certain bonds which have been
designated in hedge relationships, which are carried at €839 million higher
value (€899 million higher as at 31 March 2025) than their euro equivalent
redemption value. In addition, where bonds are issued in currencies other than
the euro, the Group has entered into foreign currency swaps to fix the euro
cash outflows on redemption. The impact of these swaps is not reflected in
gross debt and if it were included, the euro equivalent value of the bonds
would increase by €173 million (€1,132 million decrease as at 31 March
2025).
Return on capital employed
Return on capital employed ('ROCE') reflects how efficiently we are generating
profit with the capital we deploy. We calculate two ROCE measures: (i)
Pre-tax ROCE for controlled operations only and (ii) Post-tax ROCE including
associates and joint ventures.
The table below presents ROCE using non-GAAP measures.
FY26 FY25 Reported
% % Change pps
Pre-tax ROCE (controlled)(1) 6.6% 7.0% (0.4)
Post-tax ROCE (controlled and associates/joint ventures)(1) 4.4% 4.4% -
Note:
1. ROCE is calculated by dividing adjusted Operating profit by the average
adjusted Capital employed. Pre-tax ROCE (controlled) and Post-tax ROCE
(controlled and associates/joint ventures) are non-GAAP measures. See page 37
for more information.
Pre-tax ROCE of 6.6% declined by 0.4pps year-on-year due to the consolidation
of VodafoneThree and lower adjusted Operating profit, partially mitigated by a
decline in the average adjusted Capital employed. Post-tax ROCE remained
stable year-on-year driven by a higher adjusted Share of results of equity
accounted associates and joint ventures for the year ended 31 March 2026.
Pre-tax ROCE of 3.2% calculated using GAAP measures improved by 3.6pps
year-on-year due to higher Operating profit and lower average Capital employed
as reported for the year ended 31 March 2026. Prior year Operating profit
included impairment losses. See page 46 for further analysis.
Funding facilities
As at 31 March 2026, the Group had undrawn revolving credit facilities of
€7.6 billion, principally €4.1 billion and US$4.0 billion (€3.5 billion)
which mature in 2031 and 2028 respectively. Both committed revolving credit
facilities support US and euro commercial paper programmes of up to US$15
billion (€13 billion) and €10 billion respectively.
Post employment benefits
As at 31 March 2026, the Group's net surplus of scheme assets over scheme
liabilities was €82 million (€55 million net surplus as at 31 March
2025).
Dividends
Dividends will continue to be declared in euros, aligning the Group's
shareholder returns with the primary currency in which we generate free cash
flow, and paid in euros, pounds sterling and US dollars. The foreign exchange
rate at which future dividends declared in euros will be converted into pounds
sterling and US dollars will be calculated based on the average World Markets
Company benchmark rates over the five business days concluding one week prior
to the payment of the dividend.
The Board is recommending total dividends per share of 4.6125 eurocents for
the year. This includes a final dividend of 2.3625 eurocents compared to 2.25
eurocents in the prior year.
The ex-dividend date for the final dividend is 4 June 2026 for ordinary
shareholders and 5 June 2026 for ADR holders. The record date is 5 June 2026
and the dividend is payable on 30 July 2026.
Shareholders may elect to receive their dividend in either eurocents or GBP
and the last day for election will be 9 July 2026. Alternatively, shareholders
may participate in the dividend reinvestment plan and elections must be made
by 9 July 2026. More information can be found at vodafone.com/dividends
Other significant developments
Board changes
The following Board changes took effect after the conclusion of the 2025
Annual General Meeting in July:
- David Nish retired as a Board member, Senior Independent Director and
Chair of the Audit and Risk Committee.
- Simon Segars was appointed Senior Independent Director and also joined
the Nominations and Governance Committee.
- Simon Dingemans was appointed Chair of the Audit and Risk Committee
and member of the Remuneration Committee.
- Anne-Françoise Nesmes was appointed as a Non-Executive Director and
joined the Audit and Risk Committee and ESG Committee.
- Michel Demaré ceased to be a member of the Nominations and Governance
Committee.
- Christine Ramon ceased to be a member of the ESG Committee and joined
the Remuneration Committee.
- Delphine Ernotte Cunci ceased to be a member of the Remuneration
Committee and joined the Nominations and Governance Committee.
On 1 December 2025, Pilar López was appointed as Group Chief Financial
Officer and Executive Director to the Board following Luka Mucic's departure
on 30 November 2025.
Executive Committee changes
Guillaume Boutin was appointed CEO Vodafone Investments & Strategy and a
member of the Executive Committee in May 2025. Guillaume succeeded Serpil
Timuray who left Vodafone at the end of June 2025.
On 30 November 2025, Luka Mucic stepped down as Group Chief Financial Officer
and a member of the Executive Committee and was succeeded by Pilar López on 1
December 2025.
Ruth McGill was appointed Chief Human Resources Officer and a member of the
Executive Committee on 1 January 2026. Ruth succeeded Leanne Wood who left
Vodafone on 1 January 2026.
Unaudited condensed consolidated financial statements
Consolidated income statement
Year ended 31 March
2026 2025
Note €m €m
Revenue 40,461 37,448
Cost of sales (27,728) (24,929)
Gross profit 12,733 12,519
Selling and distribution expenses (3,149) (2,934)
Administrative expenses (5,841) (5,447)
Net credit losses on financial assets (429) (476)
Share of results of equity accounted associates and joint ventures (382) (123)
Impairment charge 2 - (4,515)
Other (expense)/income (88) 565
Operating profit/(loss) 2,844 (411)
Investment and other income 1,395 864
Financing costs (2,375) (1,931)
Profit/(loss) before taxation 1,864 (1,478)
Income tax expense (1,805) (2,246)
Profit/(loss) for the financial year - Continuing operations 59 (3,724)
Loss for the financial year - Discontinued operations 3 (108) (22)
Loss for the financial year (49) (3,746)
Attributable to:
- Owners of the parent (397) (4,169)
- Non-controlling interests 348 423
Loss for the financial year (49) (3,746)
Loss per share - Continuing operations
- Basic (1.20)c (15.86)c
- Diluted (1.20)c (15.86)c
Loss per share - Total Group
- Basic (1.65)c (15.94)c
- Diluted (1.65)c (15.94)c
The accompanying notes are an integral part of the unaudited condensed
consolidated financial statements.
Consolidated statement of comprehensive expense
Year ended 31 March
2026 2025
€m €m
Loss for the financial year (49) (3,746)
Other comprehensive (expense)/income:
Items that may be reclassified to the income statement in subsequent years:
Foreign exchange translation differences, net of tax (696) 321
Foreign exchange translation differences, transferred to the income statement - 115
Other, net of tax(1) 209 36
Total items that may be reclassified to the income statement in subsequent (487) 472
years
Items that will not be reclassified to the income statement in subsequent
years:
Fair value gains on equity instruments classified as Other investments, net of 428 116
tax
Net actuarial gains on defined benefit pension schemes, net of tax 9 1
Total items that will not be reclassified to the income statement in 437 117
subsequent years
Other comprehensive (expense)/income (50) 589
Total comprehensive expense for the financial year (99) (3,157)
Attributable to:
- Owners of the parent (254) (3,485)
- Non-controlling interests 155 328
Total comprehensive expense for the financial year (99) (3,157)
Note:
1. Principally includes the impact of the Group's cash flow hedges
deferred to other comprehensive income during the year.
The accompanying notes are an integral part of the unaudited condensed
consolidated financial statements.
Consolidated statement of financial position
31 March 31 March
2026 2025
Note €m €m
Non-current assets
Goodwill 21,918 20,514
Other intangible assets 14,359 12,924
Property, plant and equipment 34,193 30,712
Investments in associates and joint ventures 6,492 6,892
Other investments 2,087 3,153
Deferred tax assets 18,068 19,033
Post employment benefits 288 242
Trade and other receivables 5,221 6,431
102,626 99,901
Current assets
Inventory 596 617
Taxation recoverable 186 174
Trade and other receivables 10,584 9,404
Other investments 6,770 7,424
Cash and cash equivalents 8,982 11,001
27,118 28,620
Assets held for sale 3 174 -
Total assets 129,918 128,521
Equity
Called up share capital 3,950 4,319
Additional paid-in capital 150,312 149,834
Treasury shares (6,704) (6,791)
Accumulated losses (126,532) (123,503)
Accumulated other comprehensive income 29,607 28,886
Total attributable to owners of the parent 50,633 52,745
Non-controlling interests 3,732 1,171
Total equity 54,365 53,916
Non-current liabilities
Borrowings 45,506 46,096
Share of net liabilities in associates and joint ventures 102 96
Deferred tax liabilities 1,043 798
Post employment benefits 206 187
Provisions 1,261 1,430
Non-debt liabilities in respect of written put options 107 97
Trade and other payables 3,333 3,147
51,558 51,851
Current liabilities
Borrowings 7,130 7,047
Taxation liabilities 555 578
Provisions 731 1,066
Trade and other payables 15,579 14,063
23,995 22,754
Total equity and liabilities 129,918 128,521
The accompanying notes are an integral part of the unaudited condensed
consolidated financial statements.
Consolidated statement of changes in equity
Share Additional Treasury Accumulated Equity attributable to the owners Non- Total equity
capital paid-in shares comprehensive controlling
capital(1) losses(2) interests
€m €m €m €m €m €m €m
1 April 2024 4,797 149,253 (7,645) (86,439) 59,966 1,032 60,998
Issue or reissue of shares - - 84 (81) 3 - 3
Share-based payments - 103 - - 103 7 110
Transactions with non-controlling interests in subsidiaries - - - (47) (47) 50 3
Dividends - - - (1,795) (1,795) (246) (2,041)
Comprehensive (expense)/income - - - (3,485) (3,485) 328 (3,157)
Purchase of Treasury shares - - (2,000) - (2,000) - (2,000)
Cancellation of shares (478) 478 2,770 (2,770) - - -
31 March 2025 4,319 149,834 (6,791) (94,617) 52,745 1,171 53,916
1 April 2025 4,319 149,834 (6,791) (94,617) 52,745 1,171 53,916
Issue or reissue of shares - 2 82 (81) 3 348 351
Share-based payments - 107 - - 107 7 114
Acquisition of subsidiaries - - - - - 1,045 1,045
Transactions with non-controlling interests in subsidiaries(3) - - - 1,126 1,126 1,248 2,374
Dividends - - - (1,094) (1,094) (242) (1,336)
Comprehensive (expense)/income - - - (254) (254) 155 (99)
Purchase of Treasury shares - - (2,000) - (2,000) - (2,000)
Cancellation of shares (369) 369 2,005 (2,005) - - -
31 March 2026 3,950 150,312 (6,704) (96,925) 50,633 3,732 54,365
Notes:
1. Includes share premium, capital reserve, capital redemption reserve,
merger reserve and share-based payment reserve. The merger reserve was derived
from acquisitions made prior to 31 March 2004 and subsequently allocated to
additional paid-in capital on adoption of IFRS.
2. Includes accumulated losses and accumulated other comprehensive income.
3. See Note 4 'Acquisitions and disposals' for further information.
The accompanying notes are an integral part of the unaudited condensed
consolidated financial statements.
Consolidated statement of cash flows
Year ended 31 March
2026 2025
€m €m
Inflow from operating activities 14,291 15,373
Cash flows from investing activities
Purchase of interests in subsidiaries, net of cash acquired (193) (9)
Purchase of interests in associates and joint ventures (729) (321)
Purchase of intangible assets (2,447) (2,375)
Purchase of property, plant and equipment (4,871) (4,324)
Purchase of investments (1,060) (3,499)
Disposal of interests in subsidiaries, net of cash disposed (131) 11,221
Disposal of interests in associates and joint ventures 20 3,021
Disposal of property, plant and equipment and intangible assets 209 9
Disposal of investments 3,601 737
Dividends received from investments 818 530
Interest received 545 556
Cash outflows from discontinued operations - (787)
(Outflow)/inflow from investing activities (4,238) 4,759
Cash flows from financing activities
Proceeds from issue of long-term borrowings 6,081 4,680
Repayment of borrowings (11,924) (12,963)
Net movement in short-term borrowings (502) 78
Net movement in derivative and other financial instruments 73 404
Interest paid (2,257) (2,705)
Purchase of treasury shares (2,041) (1,868)
Issue of ordinary share capital and reissue of treasury shares 2 3
Equity dividends paid (1,093) (1,787)
Dividends paid to non-controlling shareholders in subsidiaries (245) (249)
Other transactions with non-controlling shareholders in subsidiaries 100 8
Cash outflows from discontinued operations - (879)
Outflow from financing activities (11,806) (15,278)
Net cash (outflow)/inflow (1,753) 4,854
Cash and cash equivalents at the beginning of the financial year(1) 10,893 6,114
Exchange loss on cash and cash equivalents (227) (75)
Cash and cash equivalents at the end of the financial year(1) 8,913 10,893
Note:
1. Comprises cash and cash equivalents as presented in the consolidated
statement of financial position of €8,982 million (€11,001 million as at
31 March 2025), together with overdrafts of €69 million (€108 million as
at 31 March 2025).
The accompanying notes are an integral part of the unaudited condensed
consolidated financial statements.
Notes to the unaudited condensed consolidated financial statements
1 Basis of preparation
These unaudited condensed consolidated financial statements of Vodafone Group
Plc and its subsidiaries apply the same accounting policies, presentation and
methods of calculation as those followed in the preparation of the Group's
consolidated financial statements for the year ended 31 March 2025 which were
prepared in accordance with UK-adopted International Accounting Standards
('IAS'), with International Financial Reporting Standards ('IFRS') as issued
by the International Accounting Standards Board ('IASB') and with the
requirements of the UK Companies Act 2006.
Ernst & Young LLP has consented to the release of this unaudited
Preliminary Announcement. The financial information presented in the unaudited
condensed consolidated financial statements does not constitute statutory
accounts within the meaning of section 434(3) of the Companies Act 2006 ('the
Act'). Statutory accounts for the year ended 31 March 2025 were published in
Vodafone's Annual Report and a copy was delivered to the Registrar of
Companies for England and Wales. The auditor's report on those accounts was
unqualified, did not include a reference to any matters to which the auditor
drew attention by way of emphasis without qualifying the report and did not
contain a statement under sections 498(2) or 498(3) of the Act. A separate
announcement will be made in accordance with Disclosure and Transparency Rules
('DTR') 6.3 when the Annual Report for the year ended 31 March 2026 are made
available on the Company's website, which is expected to be in May 2026.
The preparation of the preliminary results requires management to make certain
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the end of
the reporting period, and the reported amounts of revenue and expenses during
the period. Actual results could vary from these estimates. These estimates
and underlying assumptions are reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period in which the estimate is
revised if the revisions affect only that period or in the period of the
revision and future periods if the revision affects both current and future
periods.
Going concern
The Group has €8.9 billion of cash and cash equivalents as at 31 March 2026
which, together with undrawn revolving credit facilities of €7.6 billion,
cover all of the Group's reasonably expected cash requirements over the going
concern period. The Directors have reviewed trading and liquidity forecasts
for the Group, which were based on current trading conditions, and considered
a variety of scenarios. In addition to the liquidity forecasts prepared, the
Directors considered the availability of the Group's revolving credit
facilities which were undrawn as at 31 March 2026. As a result of the
assessment performed, the Directors have concluded that the Group is able to
continue in operation for the period of at least 12 months from the date of
approving the consolidated financial statements and that it is appropriate to
continue to adopt the going concern basis in preparing the unaudited condensed
consolidated financial statements.
Merger of Vodafone UK and Three UK
On 31 May 2025, the Group and CK Hutchison Group Telecom Holdings Limited
('CKHGT'), a wholly owned subsidiary of CK Hutchison Holdings Limited
('Hutchison'), transferred their UK telecommunication businesses, respectively
Vodafone UK and Three UK, into VodafoneThree Holdings Limited ('VTHL').
Following completion, VTHL is a subsidiary of the Group, in which the Group
owns 51% of the issued share capital and CKHGT indirectly owns 49%. The Group
consolidates VodafoneThree into its financial results from 1 June 2025.
Acquisition of a non-controlling interest in Maziv
On 1 December 2025, the Group acquired a 30% stake in the issued share capital
of Maziv Proprietary Limited ('Maziv') in exchange for certain Vodacom fibre
assets, and cash. The Group has included its share of results from this date
within 'Share of results of equity accounted associates and joint ventures'.
Notes to the unaudited condensed consolidated financial statements
2 Impairment review
The Group performs its annual impairment test for goodwill and indefinite
lived intangible assets at 31 March and when there is an indicator of
impairment of an asset. At each reporting period date, judgement is exercised
by management in determining whether any internal or external sources of
information observed are indicative that the carrying amount of any of the
Group's cash generating units is not recoverable.
If the recoverable amount of the cash-generating unit is less than the
carrying amount of the unit, the impairment loss is allocated first to reduce
the carrying amount of any goodwill allocated to the unit and then to the
other assets of the unit pro-rata on the basis of the carrying amount of each
asset in the unit. Impairment losses recognised for goodwill are not
reversible in subsequent periods.
Year ended 31 March 2026
The Group did not recognise any impairments for the year ended 31 March
2026.
The table below shows key assumptions used in the value in use calculations,
and separately presented cash-generating units for which the carrying amount
of goodwill is significant in comparison with the Group's total carrying
amount of goodwill:
Assumptions used in value in use calculation
Germany UK
% %
Pre-tax discount rate 7.5 9.1
Long-term growth rate 1.2 2.0
Projected adjusted EBITDAaL CAGR(1) 1.9 7.7
Projected capital expenditure(2) 19.5 - 20.3 10.9 - 16.3
For the Group's operations in Germany, management has prepared the following
sensitivity analysis to the base case recoverable amount less carrying value
for changes in pre-tax discount rate and projected adjusted EBITDAaL CAGR(1)
assumptions. The associated impact of the change in each key assumption does
not consider any consequential impact on other assumptions used in the
impairment review.
Recoverable amount less carrying value
Germany
€bn
Base case recoverable amount less carrying value 0.3
Change in pre-tax discount rate
- Decrease by 0.5 pps 3.2
- Increase by 0.5 pps (2.2)
Change in projected adjusted EBITDAaL CAGR(1)
- Decrease by 2.0 pps (3.1)
- Increase by 2.0 pps 4.0
Notes:
1. Projected adjusted EBITDAaL CAGR is expressed as the compound annual
growth rates in the initial five years for all cash-generating units of the
plans used for impairment testing.
2. Projected capital expenditure, which excludes licences and spectrum, is
expressed as capital expenditure as a percentage of revenue in the initial
five years for all cash-generating units of the plans used for impairment
testing.
Notes to the unaudited condensed consolidated financial statements
2 Impairment review (continued)
Year ended 31 March 2025
In the prior year ended 31 March 2025, the Group recorded impairment charges
of €4,350 million and €165 million with respect to the Group's investments
in Germany and Romania. The impairment charges reflected management's
assessment of likely trading and economic conditions in the five-year business
plan.
The impairment charge in relation to Vodafone Germany primarily arose from the
impacts of a significantly lower EBITDAaL performance in the year ended 31
March 2025 and lower medium term EBITDAaL growth expectations, on our
determination of value in use. The key driver of both changes was materially
higher competitive intensity, in the mobile market in the current year
compared to FY24, impacting expectations of future cash generation.
The table below shows the key assumptions used in the value in use
calculations of Germany and Romania.
Assumptions used in value in use calculation
Germany Romania
% %
Pre-tax discount rate 7.8 11.0
Long-term growth rate 1.2 2.5
Projected adjusted EBITDAaL CAGR(1) 1.3 1.5
Projected capital expenditure(2) 17.6 - 20.7 9.2 - 11.0
For the Group's operations in Germany and Romania management has prepared the
following sensitivity analysis to the base case recoverable amount less
carrying value for changes in pre-tax discount rate and projected adjusted
EBITDAaL CAGR(1) assumptions. The associated impact of the change in each key
assumption does not consider any consequential impact on other assumptions
used in the impairment review.
Recoverable amount less carrying value
Germany Romania
€bn €bn
Base case recoverable amount less carrying value (4.4) (0.2)
Change in pre-tax discount rate
- Decrease by 0.5 pps (1.7) (0.1)
- Increase by 0.5 pps (6.6) (0.2)
Change in projected adjusted EBITDAaL CAGR(1)
- Decrease by 2.0 pps (7.6) (0.2)
- Increase by 2.0 pps (0.8) (0.1)
Notes:
1. Projected adjusted EBITDAaL CAGR is expressed as the compound annual
growth rates in the initial five years for all cash-generating units of the
plans used for impairment testing.
2. Projected capital expenditure, which excludes licences and spectrum, is
expressed as capital expenditure as a percentage of revenue in the initial
five years for all cash-generating units of the plans used for impairment
testing.
Notes to the unaudited condensed consolidated financial statements
3 Discontinued operations and assets held for sale
Where operations constitute a separately reportable segment and have been
disposed of, or are classified as held for sale, the Group classifies such
operations as discontinued. Discontinued operations are excluded from the
results of continuing operations and are presented as a single amount as
profit or loss after tax from discontinued operations in the consolidated
income statement. Discontinued operations are also excluded from segment
reporting. All other notes to the unaudited condensed consolidated financial
statements include amounts for continuing operations, unless indicated
otherwise.
Transactions between the Group's continuing and discontinued operations are
eliminated in full in the consolidated income statement. To the extent that
the Group considers that the commercial relationships with discontinued
operations will continue post-disposal, transactions are reflected within
continuing operations with an opposite charge or credit reflected within the
results of discontinued operations resulting in a net nil impact on the
Group's Loss for the financial years presented.
Disposal of Vodafone Spain
The disposal of Vodafone Spain completed in the prior year on 31 May 2024 and
resulted in a loss on disposal of €148 million which was included in Loss
for the financial year - Discontinued operations in the prior year ended 31
March 2025.
Disposal of Vodafone Italy
The disposal of Vodafone Italy completed in the prior year on 31 December 2024
and resulted in a loss on disposal of €1,133 million which was included in
Loss for the financial year - Discontinued operations in the prior year ended
31 March 2025.
Discontinued operations
The results of Vodafone Spain and Vodafone Italy were reported as discontinued
operations in the prior years through to the date of disposal.
A summary of the results from these discontinued operations is below.
2026(1) 2025
€m €m
(Loss)/profit for the financial year - Discontinued operations
Vodafone Spain (25) 53
Vodafone Italy (83) (75)
Total (108) (22)
Loss per share - Discontinued operations
- Basic (0.45)c (0.08)c
- Diluted (0.45)c (0.08)c
Note:
1. Relates to the finalisation of the disposal completion accounts in the
current financial year.
Assets held for sale
On 18 February 2026, the Group announced that it has agreed to sell its
interests in VodafoneZiggo Group Holding B.V. ('VodafoneZiggo') to Liberty
Global plc for €1.0 billion in cash and a 10% stake in the new Ziggo Group
which will own 100% of both VodafoneZiggo and Liberty Global's Belgian
subsidiary, Telenet Group Holding. The Group's €0.9 billion loan receivable
from VodafoneZiggo will be settled from the transaction proceeds.
Consequently, the Group's investment in VodafoneZiggo is classified as held
for sale at 31 March 2026.
31 March 31 March
2026 2025
€m €m
Non-current assets
Investments in associates and joint ventures 174 -
174 -
Notes to the unaudited condensed consolidated financial statements
4 Acquisitions and disposals
Accounting policies
Business combinations
Acquisitions of subsidiaries are accounted for using the acquisition method.
The cost of the acquisition is measured at the aggregate of the fair values at
the date of exchange of assets given, liabilities incurred or assumed and
equity instruments issued by the Group. Acquisition-related costs are
recognised in the consolidated income statement as incurred. The acquiree's
identifiable assets and liabilities are recognised at their fair values at the
acquisition date, which is the date on which control is transferred to the
Group. Goodwill is measured as the excess of the sum of the consideration
transferred, the amount of any non-controlling interests in the acquiree and
the fair value of the Group's previously held equity interest in the acquiree,
if any, over the net amount of identifiable assets acquired and liabilities
assumed at the acquisition date. The interest of the non-controlling
shareholders in the acquiree may initially be measured either at fair value or
at the non-controlling shareholders' proportion of the net fair value of the
identifiable assets acquired, liabilities and contingent liabilities assumed.
The choice of measurement basis is made on an acquisition-by-acquisition
basis.
Acquisition of interests from non-controlling shareholders
In transactions with non-controlling parties that do not result in a change in
control, the difference between the fair value of the consideration paid or
received and the amount by which the non-controlling interest is adjusted, is
recognised in equity.
Disposals
The difference between the carrying value of the net assets disposed of and
the fair value of consideration received is recorded as a gain or loss on
disposal. Foreign exchange translation gains or losses relating to
subsidiaries, joint arrangements and associates that the Group has disposed
of, and that have previously been recorded in other comprehensive income or
expense, are also recognised as part of the gain or loss on disposal.
Purchase of subsidiaries
The aggregate cash consideration in respect of the purchase of subsidiaries,
net of cash acquired, is summarised below.
2026 2025
€m €m
Net cash consideration paid
Merger of Vodafone Limited and Hutchison 3G UK Holdings Limited in the UK (31) -
Acquisition of Cloudforce 1 GmbH ('Skaylink') (175) -
Other (37) (9)
Net cash acquired 50 -
(193) (9)
Notes to the unaudited condensed consolidated financial statements
4 Acquisitions and disposals (continued)
Merger of Vodafone Limited and Hutchison 3G UK Holdings Limited in the UK
On 31 May 2025, the Group and CK Hutchison Group Telecom Holdings Limited
('CKHGT'), a wholly owned subsidiary of CK Hutchison Holdings Limited
('Hutchison'), transferred their UK telecommunication businesses, respectively
Vodafone Limited ('Vodafone UK') and Hutchison 3G UK Holdings Limited ('Three
UK'), into VodafoneThree Holdings Limited ('VTHL'). Following completion, VTHL
is a subsidiary of the Group, in which the Group owns 51% of the issued share
capital and CKHGT indirectly owns 49%, and Vodafone UK and Three UK are wholly
owned subsidiaries of VTHL.
Consideration paid by the Group to Hutchison was 49% of Vodafone UK's equity,
subject to closing adjustments that will be settled in cash. Vodafone UK and
Three UK were contributed with differential debt amounts owing to their
respective shareholders at closing to achieve the required ownership
structure. The Group advanced loans of £6,010 million to VTHL, of which
£1,684 million was utilised to settle Three UK's outstanding debt with
Hutchison. In addition, Vodafone and Hutchison jointly contributed, in
proportion to their shareholdings, a total of £600 million of equity funding
on completion, with a further total of £200 million jointly contributed in
April 2026.
As part of the transaction, Vodafone and Hutchison agreed a framework to
enable Vodafone to acquire Hutchison's 49% shareholding in VTHL through a
Vodafone call or a Hutchison put option which may be exercised at fair market
value, subject to customary third party approvals and consents, and settled in
cash or new Vodafone Group Plc shares, at the Group's option, subject to
certain conditions. The call and put options will become exercisable after
three full financial years following closing, providing that the fair market
enterprise value of VTHL reaches a minimum of £16.5 billion until after the
seventh financial year following completion, when this threshold will cease to
apply to the exercise of the Hutchison put option. As the Group has the
ability to settle the put option with Vodafone Group Plc shares, no put option
liability will initially be recorded.
A purchase price allocation has been performed as at 31 May 2025, the
acquisition date, and is set out in the table below.
€m
Other intangible assets(1) 2,555
Property, plant and equipment 3,457
Inventory 43
Trade and other receivables 867
Cash and cash equivalents 27
Current and deferred taxation 88
Borrowings (4,160)
Trade and other payables (675)
Provisions (69)
Net identifiable assets acquired 2,133
Non-controlling interests(2) (1,045)
Goodwill(3) 1,358
Total consideration(4) 2,446
Notes:
1. Identifiable intangible assets of €2,555 million consisted of
acquired licences of €975 million, computer software of €887 million,
customer relationships of €467 million and brand of €226 million.
2. Measured at the non-controlling shareholders' proportion of the net
fair value of the identifiable assets acquired, liabilities and contingent
liabilities assumed.
3. The goodwill is attributable to future profits to be generated from
new customers and the synergies expected to arise after the Group's
acquisition of the business.
4. Includes closing adjustments of €178 million payable to
Hutchison, of which €31 million was paid in the year.
Notes to the unaudited condensed consolidated financial statements
4 Acquisitions and disposals (continued)
Transaction costs of €30 million were charged to Other (expense)/income in
the Group's consolidated income statement in the year ended 31 March 2026.
From the date of acquisition, the acquired entities have contributed €2,302
million of revenue and a loss of €551 million is included in the loss for
the financial year of the Group. If the acquisition had taken place at the
beginning of the financial year, Group revenue would have been €40,957
million and the Group loss for the financial year would have been €155
million.
As part of the merger of Vodafone and Three in the UK, the Group gave up a 49%
interest in Vodafone UK to Hutchison, with consideration taking the form of
51% of Three UK's equity, subject to closing adjustments that will be settled
in cash. The Group recognised non-controlling interests of €1,208 million
and a net gain of €603 million in retained earnings in relation to this
transaction.
Additionally, non-controlling interests of €348 million were recognised in
relation to Hutchison's proportionate contribution of the £600 million equity
funding raised by VTHL on closing, this being settled by way of offset against
amounts due to Hutchison.
Acquisition of Cloudforce 1 GmbH
On 17 December 2025, the Group announced it had completed the acquisition of
Cloudforce 1 GmbH ('Skaylink') for a total cash consideration of €175
million. The aggregate fair values of goodwill, identifiable assets,
liabilities recognised on acquisition were €107 million, €110 million and
€42 million, respectively. The acquisition enhances the Group's cloud
consulting and managed services capabilities and has been accounted for as a
business combination in accordance with IFRS 3, with Skaylink consolidated
from the acquisition date.
Other transactions with non-controlling shareholders in subsidiaries
The aggregate net cash received in respect of other transactions with
non-controlling shareholders in subsidiaries was €100 million (2025: €8
million) including €125 million (2025: €25 million) received from
Accenture Holdings B.V. for a non-controlling interest in Vodafone Shared
Operations Limited.
Disposal of subsidiaries
The aggregate cash consideration in respect of the disposal of subsidiaries,
net of cash disposed, is as follows:
2026 2025
€m €m
Cash consideration (paid)/received
Vodafone Spain (33) 3,669
Vodafone Italy (98) 7,707
Net cash disposed - (155)
(131) 11,221
Vodafone Spain
In the comparative year, on 31 May 2024, the Group announced it had completed
the sale of Vodafone Holdings Europe, S.L.U. ('Vodafone Spain') to Zegona
Communications plc ('Zegona') for €4,069 million in cash (subject to closing
accounts adjustments, which were finalised during the year ended 31 March
2026) and up to €900 million of non-cash consideration in the form of
redeemable preference shares which were settled during the year ended 31 March
2026. €400 million of the cash received related to future services to be
provided by the Group to Zegona and was deferred on the Group's statement of
financial position. The disposal resulted in a loss of €148 million in the
comparative year and was included in Loss for the financial year -
Discontinued operations in the prior year ended 31 March 2025.
Vodafone Italy
In the comparative year, on 31 December 2024, the Group announced it had
completed the sale of Vodafone Italia S.p.A. ('Vodafone Italy') to Swisscom AG
for €7,885 million in cash (subject to closing accounts adjustments, which
were finalised during the year ended 31 March 2026). €178 million of the
cash received relates to future services to be provided by the Group to
Swisscom AG and was deferred on the Group's statement of financial position.
The disposal resulted in a loss of €1,133 million in the comparative year
and was included in Loss for the financial year - Discontinued operations in
the prior year ended 31 March 2025.
Notes to the unaudited condensed consolidated financial statements
5 Dividends
2026 2025
€m €m
Declared during the financial year
Final dividend for the year ended 31 March 2025: 2.25 eurocents per share 558 1,212
(2024: 4.50 eurocents per share)
Interim dividend for the year ended 31 March 2026: 2.25 eurocents per share 536 583
(2025: 2.25 eurocents per share)
1,094 1,795
Proposed after the end of the year and not recognised as a liability:
Final dividend for the year ended 31 March 2026: 2.3625 eurocents per share 544 558
(2025: 2.25 eurocents per share)
6 Contingent liabilities and legal proceedings
Vodafone Idea
As part of the agreement to merge Vodafone India and Idea Cellular in 2017,
the parties agreed a mechanism for payments (the 'CLAM indemnity') between the
Group and Vodafone Idea Limited ('VIL') under which the Group would reimburse
VIL in the event of the crystallisation and payment of certain identified
contingent liabilities. The Group's maximum potential exposure under this
mechanism was capped at INR 64 billion (€585 million).
On 31 December 2025 the Group reached an agreement with VIL to settle the
Group's obligations under the CLAM via the following transactions:
- The Group will make cash payments totalling €219 million to VIL;
there will be no net cash outflow for the Group as these will be funded by
VIL's payment of €219 million of outstanding service charges; and
- The Group has set aside 3,280 million of Vodafone Group's shares in
VIL for VIL's benefit. VIL will have the right to instruct Vodafone to sell
these shares, in one or more tranches over up to five years, with any cash
proceeds being transferred to VIL.
The Group has recognised a liability of €256 million for the value of the
shares that have been assigned to VIL.
Notes to the unaudited condensed consolidated financial statements
6 Contingent liabilities and legal proceedings (continued)
Legal proceedings
The Group is currently involved in a number of legal proceedings, including
inquiries from, or discussions with, government authorities that are
incidental to its operations.
Legal proceedings where the Group considers that the likelihood of material
future outflows of cash or other resources is more than remote are disclosed
below. Where the Group assesses that it is probable that the outcome of legal
proceedings will result in a financial outflow, and a reliable estimate can be
made of the amount of that obligation, a provision is recognised for these
amounts.
In all cases, determining the probability of successfully defending a claim
against the Group involves the application of judgement as the outcome is
inherently uncertain. The determination of the value of any future outflows of
cash or other resources, and the timing of such outflows, involves the use of
estimates. The costs incurred in complex legal proceedings, regardless of
outcome, can be significant.
The Group is not involved in any material proceedings in which any of the
Group's Directors, members of senior management or affiliates are either a
party adverse to the Group or have a material interest adverse to the Group.
Tax cases
Netherlands tax case
Vodafone Europe BV ('VEBV') received assessments totalling €267 million in
tax and interest from the Dutch tax authorities, who challenged the
application of the arm's length principle in relation to various intra-group
financing transactions. VEBV appealed against these assessments to the
District Court of the Hague where a hearing was held in March 2023. The
District Court issued its judgement in July 2023, upholding VEBV's appeal in
relation to the majority of issues and requiring the Dutch tax authorities to
significantly reduce its assessments. VEBV and the Dutch tax authorities
subsequently appealed the District Court's judgement before the Court of
Appeal of The Hague. A final decision from the Court of Appeal is expected in
late 2026.
The Group continues to believe it has robust defences but has recorded a
provision of €27 million for tax and accrued interest reflecting the July
2023 judgement and the Group's current view of the probable financial outflow
required to fully resolve the issue.
VISPL tax claims
Vodafone India Services Private Limited ('VISPL') has now closed all
outstanding tax disputes with the Indian tax authorities relating to
Vodafone's acquisition of Hutchison Essar (later renamed Vodafone India
Limited), including the five assessment years between 2008‑09 and 2014‑15.
The tax amnesty was formally concluded in July 2025. The amnesty gave rise to
an income statement tax charge of €185 million in the financial year ended
31 March 2025. No income statement tax charge arose in the financial year
ended 31 March 2026.
Other cases in the Group
Germany: price increase class action
In November 2023, the Verbraucherzentrale Bundesverband (Federation of German
Consumer Organisations) initiated a class action against Vodafone Germany in
the Hamm Higher Regional Court. Vodafone Germany implemented price increases
of €5 per month for fixed lines services in 2023 in response to higher
costs. The claim alleges that terms regarding price increases in the consumer
contracts entered into by Vodafone Germany's customers up until August 2023
are invalid under German civil law and seeks reimbursement of the additional
charges plus interest. Customers must enter their details onto the register of
collective actions on the Federal Office of Justice website in order to
participate in the claim. The register opened in April 2024 and as at 31 March
2026, approximately 115,100 customers had registered. Vodafone Germany filed
its defence in August 2024. Proceedings in the class action have been
suspended pending the outcome of a referral to the Court of Justice of the
European Union in a related case.
Whilst the Group intends to defend the claim, it is not able to determine the
likelihood or estimate the amount of any possible financial loss at this stage
of the proceedings.
Notes to the unaudited condensed consolidated financial statements
6 Contingent liabilities and legal proceedings (continued)
Germany: claims regarding transfer of data to credit agencies
Individual consumers are bringing claims against Vodafone Germany and/or the
other national network operators for GDPR infringement relating to the
transfer of data to credit agencies without consent. Vodafone Germany's
position is that the transfer of information about the existence of a consumer
contract is justified for fraud prevention purposes.
The Group will continue to defend these claims. However, the Group now
considers the risk of a material financial impact to be remote.
Germany: investigation by competition authority regarding 1&1
In December 2021 1&1 entered into an agreement with Vantage Towers for the
provision of infrastructure for tower sites. Vantage Towers sub-contracted
certain aspects of the delivery under the agreement to Vodafone Germany.
In March 2023, Vodafone Germany and Vodafone Group (together 'Vodafone') were
informed that 1&1 had submitted a complaint to the Bundeskartellamt
('BkA'), the competition authority in Germany, alleging infringements of
competition law. Following the start of a formal investigation in June 2023,
the BkA issued a Statement of Objections on 11 April 2025 with its view that
the delayed provision by Vodafone and Vantage Towers of the contractually
agreed tower sites acted as an obstacle to 1&1's market entry and an abuse
of relative market power. Vodafone submitted its response to the Statement
of Objections to the BkA on 2 July 2025. Vodafone has received a letter from
the BkA stating that, if an infringement decision is issued, it is likely to
include an order for disgorgement of the alleged economic advantage obtained
as a result of the alleged infringement. In November 2025 Vodafone filed an
application before the Higher Regional Court of Dusseldorf challenging
procedural irregularities in the BkA's investigative process and seeking an
injunction to prevent the BkA from issuing an infringement decision pending
the outcome of the Court's decision. The BkA filed its response to the
application and the Court's decision is pending.
While the outcome is uncertain, the Group believes it has strong defences and
that it is probable no present obligation exists.
Italy: Iliad v Vodafone Italy
In July 2019, Iliad filed a claim for €500 million against Vodafone Italy in
the Civil Court of Milan which, following the divestment of Vodafone Italy was
subject to an indemnity provided by the Group to Swisscom. The claim alleged
anti-competitive behaviour in relation to customer portability and certain
advertising campaigns by Vodafone Italy. The main hearing on the merits of the
claim took place on 8 June 2021. On 17 April 2023, the Civil Court issued a
judgement in Vodafone Italy's favour and rejected Iliad's claim for damages in
full. Iliad filed an appeal before the Court of Appeal of Milan in June 2023
which was rejected in a decision dated 30 December 2025. Iliad has not filed a
further appeal before the Supreme Court and so the case is closed.
Greece: Papistas Holdings SA, Mobile Trade Stores (formerly Papistas SA) and
Athanasios and Loukia Papistas v Vodafone Greece
In October 2019, Mr. and Mrs. Papistas, and companies owned or controlled by
them, filed several claims against Vodafone Greece with a total value of
approximately €330 million for purported damage caused by the alleged abuse
of dominance and wrongful termination of a franchise arrangement with a
Papistas company. Lawsuits which the Papistas claimants had previously brought
against Vodafone Greece, including one also citing Vodafone Group Plc and
certain Directors and officers of Vodafone as defendants, were either
withdrawn or left dormant. Vodafone Greece filed a counter claim and all
claims were heard in February 2020. All of the Papistas claims were rejected
by the Athens Court of First Instance because the stamp duty payments required
to have the merits of the case considered had not been made. Vodafone
Greece's counter claim was also rejected. The Papistas claimants and Vodafone
Greece each filed appeals. Following hearings in February and May 2023, the
Court of Appeal dismissed both of the appeals, in the case of the Papistas
claimants because the stamp duty payments had again not been made. The
Papistas claimants filed a further appeal before the Supreme Court in August
2025. There was a further hearing in February 2025 about one aspect of the
appeal proceedings (a claim for damages of €2.1 million) which the Court of
Appeal referred back to the Athens Court of First Instance in August 2025.
Vodafone is continuing vigorously to defend the claims and based on the
progress of the litigation so far the Group believes that it is highly
unlikely that there will be an adverse ruling for the Group. On this basis,
the Group does not expect the outcome of these claims to have a material
financial impact.
Notes to the unaudited condensed consolidated financial statements
6 Contingent liabilities and legal proceedings (continued)
South Africa: Kenneth Makate v Vodacom (Pty) Limited
Mr Kenneth Makate, a former employee of Vodacom Pty Limited ('Vodacom South
Africa'), started legal proceedings in 2008 claiming compensation for a
business idea that led to the development of a service known as 'Please Call
Me' ('PCM').
On 4 November 2025, an immaterial settlement between Vodacom South Africa and
Mr Makate was agreed. The related court proceedings have been withdrawn.
UK: Mr Justin Gutmann v Vodafone Limited and Vodafone Group Plc
In November 2023, Mr Gutmann issued claims in the Competition Appeal Tribunal
('CAT') seeking permission, as a proposed class representative, to bring
collective proceedings on an opt-out basis against the four UK mobile network
operators ('MNOs') and, in the case of Vodafone Limited and EE Limited, their
respective parent companies. Vodafone Group Plc and Vodafone Limited are named
defendants to one of the claims with an alleged value of £1.4 billion (€1.6
billion), including interest. Hutchison 3G UK Limited ('Three'), which merged
with Vodafone Limited in May 2025, is also a named defendant to the claim with
an alleged value of £507 million (€578 million), including interest. It
is alleged that Vodafone, Three, and the other MNOs used their alleged market
dominance to overcharge customers after the expiry of the minimum terms of
certain mobile contracts (referred to as a 'loyalty penalty'). The claim was
certified by the CAT in November 2025. Following a successful strike out
application based on limitation, the total value of the claims against
Vodafone and Three have been reduced to £557 million (€638 million) and
£197 million (€225 million), respectively. Defences were filed on 27
February 2026 and Replies on 1 May 2026. A hearing will take place on 1-2 July
2026 to set the timetable to trial.
Taking into account all available evidence at this stage, the Group's
assessment is that the allegations are without merit and it intends to defend
the claim. The Group is currently unable to estimate any possible loss in
regards to this issue but, while the outcome is uncertain, the Group believes
it is probable that no present obligation exists.
UK: Phones 4U in Administration v Vodafone Limited, Vodafone Group Plc and
Others
In December 2018, the administrators of former UK indirect seller, Phones 4U,
sued the three main UK mobile network operators ('MNOs'), including Vodafone,
and their parent companies in the English High Court. The administrators
alleged collusion between the MNOs to withdraw their business from Phones 4U
thereby causing its collapse. Following a trial on liability, the High Court
issued a judgement in Vodafone's favour in November 2023 rejecting Phones 4U's
allegations that the defendants were in breach of competition law. In July
2025 the Court of Appeal also rejected all of Phones 4U's grounds of appeal.
Phones 4U has not appealed to the Supreme Court and so the case is closed.
7 Subsequent events
Full ownership of VodafoneThree in the UK
On 5 May 2026, the Group announced that it had reached an agreement for the
buyout of CK Hutchison Group Telecom Holding Limited's ('CKHGT') 49% interest
in VodafoneThree Holdings Limited ('VodafoneThree') for £4.3 billion (€4.9
billion) cash, implemented through a cancellation of CKHGT's shares. Following
the completion of the transaction, the Group will be the sole owner of
VodafoneThree.
Non-GAAP measures
In the discussion of the Group's reported operating results, non-GAAP measures
are presented to provide readers with additional financial information that is
regularly reviewed by management. This additional information presented is not
uniformly defined by all companies including those in the Group's industry.
Accordingly, it may not be comparable with similarly titled measures and
disclosures by other companies. Additionally, certain information presented is
derived from amounts calculated in accordance with IFRS but is not itself a
measure defined under GAAP. Such measures should not be viewed in isolation or
as an alternative to the equivalent GAAP measure.
The non-GAAP measures discussed in this document are listed below.
Non-GAAP measure Definition Closest equivalent GAAP measure Reconciliation
Performance metrics
Organic revenue growth Page 38 Revenue Pages 39, 40 and 41
Organic service revenue growth Page 38 Service revenue Pages 39, 40 and 41
Organic mobile service revenue growth Page 38 Service revenue Pages 39, 40 and 41
Organic fixed service revenue growth Page 38 Service revenue Pages 39, 40 and 41
Organic Vodafone Business service revenue growth Page 38 Service revenue Pages 39, 40 and 41
South Africa: Financial services organic revenue growth Page 38 Service revenue Pages 39, 40 and 41
Vodacom International: M-Pesa organic revenue growth Page 38 Service revenue Pages 39, 40 and 41
Egypt: Financial services (Vodafone Cash) organic revenue growth Page 38 Service revenue Pages 39, 40 and 41
Group Adjusted EBITDAaL Page 38 Operating profit Page 5
Organic Adjusted EBITDAaL growth Page 38 Operating profit Pages 39, 40 and 41
Organic Adjusted EBITDAaL margin growth Page 38 Operating profit Page 39
Other metrics
Adjusted profit attributable to owners of the parent Page 42 Profit attributable to owners of the parent Page 42
Adjusted basic earnings per share Page 42 Basic earnings per share Page 43
Cash flow, funding and capital allocation metrics
Free cash flow Page 43 Inflow from operating activities Page 44
Adjusted free cash flow Page 43 Inflow from operating activities Pages 17 and 44
Gross debt Page 43 Borrowings Page 44
Net debt Page 43 Borrowings less cash and cash equivalents Page 44
Pre-tax ROCE (controlled) Page 45 ROCE calculated using GAAP measures Pages 45 and 46
Post-tax ROCE (controlled and associates/joint ventures) Page 45 ROCE calculated using GAAP measures Pages 45 and 46
Financing and Taxation metrics
Adjusted net financing costs Page 47 Net financing costs Page 15
Adjusted profit before taxation Page 47 Profit before taxation Page 48
Adjusted income tax expense Page 47 Income tax expense Page 48
Adjusted effective tax rate Page 47 Income tax expense Page 48
Adjusted share of results of equity accounted associates and joint ventures Page 47 Share of results of equity accounted associates and joint ventures Page 48
Adjusted share of results of equity accounted associates and joint ventures Page 47 Share of results of equity accounted associates and joint ventures Page 48
used in post-tax ROCE
Non-GAAP measures
Performance metrics
Non-GAAP measure Purpose Definition
Adjusted EBITDAaL Adjusted EBITDAaL is used in conjunction with financial measures such as Adjusted EBITDAaL is operating profit after depreciation on lease-related
operating profit to assess our operating performance and profitability. right of use assets and interest on lease liabilities but excluding
depreciation, amortisation and gains/losses on disposal of owned assets and
It is a key external metric used by the investor community to assess excluding share of results of equity accounted associates and joint ventures,
performance of our operations. impairment losses/reversals, restructuring costs arising from discrete
restructuring plans, other income and expense and significant items that are
It is our segment performance measure in accordance with IFRS 8 (Operating not considered by management to be reflective of the underlying performance of
Segments). the Group.
Adjusted EBITDAaL margin
Adjusted EBITDAaL margin is Adjusted EBITDAaL divided by Revenue.
Organic growth
Organic growth presents performance on a comparable basis, excluding the
impact of foreign exchange rates, mergers and acquisitions, the hyperinflation
adjustment in Türkiye and other adjustments to improve the comparability of
results between periods.
Whilst organic growth is not intended to be a substitute for reported growth,
nor is it superior to reported growth, we believe that the measure provides
useful and necessary information to investors and other interested parties for
the following reasons:
- It provides additional information on underlying growth of the
business without the effect of certain factors unrelated to its operating
performance;
- It is used for internal performance analysis; and
- It facilitates comparability of underlying growth with other
companies (although the term 'organic' is not a defined term under GAAP and
may not, therefore, be comparable with similarly-titled measures reported by
other companies).
We have not provided a comparative in respect of organic growth rates as the
current rates describe the change between the beginning and end of the current
period, with such changes being explained by the commentary in this document.
If comparatives were provided, significant sections of the commentary for
prior periods would also need to be included, reducing the usefulness and
transparency of this document.
Service revenue growth in Türkiye excluding the impact of the
hyperinflationary adjustment
This growth metric presents performance in Türkiye excluding the
hyperinflationary adjustment recorded in the Group's consolidated financial
statements in accordance with IAS 29 'Financial Reporting in Hyperinflationary
Economies'.
Non-GAAP measures
Year ended 31 March 2026
Reported growth M&A and Other Foreign exchange Organic growth
FY26 FY25
€m €m % pps pps %
Service revenue
Germany 10,874 10,876 - (0.2) - (0.2)
Mobile service revenue 5,148 4,998 3.0 - - 3.0
Fixed service revenue 5,726 5,878 (2.6) (0.3) - (2.9)
UK 7,597 5,887 29.0 (32.4) 3.7 0.3
Mobile service revenue 5,966 4,261 40.0 (44.4) 4.0 (0.4)
Fixed service revenue 1,631 1,626 0.3 - 2.8 3.1
Other Europe 4,888 4,805 1.7 (0.7) (0.5) 0.5
Türkiye(1) 2,826 2,484 13.8 3.0 28.4 45.2
Africa 6,653 6,172 7.8 - 5.1 12.9
Common Functions(2) 763 663
Eliminations (121) (129)
Total service revenue 33,480 30,758 8.8 (6.7) 3.3 5.4
Other revenue 6,981 6,690
Revenue 40,461 37,448 8.0 (7.7) 3.4 3.7
Other growth metrics
Vodafone Business - Service revenue 8,179 8,003 2.2 (1.2) 2.2 3.2
Germany - Vodafone Business service revenue 2,369 2,366 0.1 (0.8) - (0.7)
UK - Vodafone Business service revenue 2,129 2,179 (2.3) (4.9) 2.7 (4.5)
Other Europe - Vodafone Business service revenue 1,571 1,561 0.6 2.8 (0.4) 3.0
Türkiye - Vodafone Business service revenue 456 375 21.6 2.1 30.3 54.0
Africa - Vodacom Business service revenue 1,204 1,126 6.9 - 4.4 11.3
South Africa - Financial services revenue 185 176 5.1 - 3.0 8.1
Vodacom International M-Pesa revenue 494 428 15.4 - 7.7 23.1
Egypt - Financial services revenue (Vodafone Cash) 157 114 37.7 - 10.5 48.2
Adjusted EBITDAaL
Germany 4,243 4,384 (3.2) (0.1) - (3.3)
UK 1,881 1,558 20.7 (19.7) 3.5 4.5
Other Europe 1,574 1,510 4.2 0.2 (0.7) 3.7
Türkiye 983 842 16.7 1.7 29.2 47.6
Africa 2,834 2,593 9.3 - 4.7 14.0
Common Functions(2) (164) 45
Eliminations - -
Group 11,351 10,932 3.8 (2.4) 3.1 4.5
Percentage point change in Adjusted EBITDAaL margin
Germany 35.0% 36.0% (1.0) 0.1 - (0.9)
UK 20.5% 22.0% (1.5) 2.9 - 1.4
Other Europe 27.5% 26.5% 1.0 0.6 (0.1) 1.5
Türkiye 28.7% 27.3% 1.4 0.1 (0.1) 1.4
Africa 33.9% 33.3% 0.6 - (0.1) 0.5
Group 28.1% 29.2% (1.1) 1.3 - 0.2
Notes:
1. Reported service revenue growth in Türkiye of 13.8% includes 3.0pps in
relation to the application of IAS 29 'Financial Reporting in
Hyperinflationary Economies'. Growth in Türkiye excluding the impact of this
hyperinflationary adjustment was 10.8%.
2. Comprises corporate functions and shared operations.
Non-GAAP measures
Quarter ended 31 March 2026
Reported growth M&A and Other Foreign exchange Organic growth
Q4 FY26 Q4 FY25
€m €m % pps pps %
Service revenue
Germany 2,723 2,670 2.0 (0.7) - 1.3
Mobile service revenue 1,274 1,242 2.7 - - 2.7
Fixed service revenue 1,449 1,428 1.5 (1.4) - 0.1
UK 1,958 1,489 31.5 (36.9) 5.2 (0.2)
Mobile service revenue 1,539 1,057 45.6 (51.9) 5.8 (0.5)
Fixed service revenue 419 432 (3.0) - 3.8 0.8
Other Europe 1,230 1,194 3.0 (1.2) (0.6) 1.2
Türkiye(1) 828 605 36.9 1.0 (4.2) 33.7
Africa 1,732 1,614 7.3 - 3.6 10.9
Common Functions(2) 192 176
Eliminations (16) (28)
Total service revenue 8,647 7,720 12.0 (8.1) 1.2 5.1
Other revenue 1,753 1,641
Revenue 10,400 9,361 11.1 (9.1) 1.0 3.0
Other growth metrics
Vodafone Business - Service revenue 2,134 2,062 3.5 (1.5) 1.2 3.2
Germany - Vodafone Business service revenue 616 588 4.8 (3.3) - 1.5
UK - Vodafone Business service revenue 535 565 (5.3) (6.0) 3.5 (7.8)
Other Europe - Vodafone Business service revenue 401 405 (1.0) 8.1 (0.3) 6.8
Türkiye - Vodafone Business service revenue 137 98 39.8 (3.2) (2.1) 34.5
Africa - Vodacom Business service revenue 323 296 9.1 - 1.9 11.0
South Africa - Financial services revenue 49 44 11.4 - (0.1) 11.3
Vodacom International - M-Pesa revenue 128 115 11.3 - 12.6 23.9
Egypt - Financial services revenue (Vodafone Cash) 43 34 26.5 - 10.8 37.3
Adjusted EBITDAaL 2,807 2,693 4.2 (2.5) 0.6 2.3
Notes:
1. Reported service revenue growth in Türkiye of 36.9% includes 37.1pps
in relation to the application of IAS 29 'Financial Reporting in
Hyperinflationary Economies'. Growth in Türkiye excluding the impact of this
hyperinflationary adjustment was -0.2%.
2. Comprises corporate functions and shared operations.
Non-GAAP measures
Quarter ended 31 December 2025
Reported growth M&A and Other Foreign exchange Organic growth
Q3 FY26 Q3 FY25
€m €m % pps pps %
Service revenue
Germany 2,726 2,706 0.7 - - 0.7
Mobile service revenue 1,295 1,259 2.8 - - 2.8
Fixed service revenue 1,431 1,447 (1.1) - - (1.1)
UK 1,975 1,507 31.1 (38.4) 6.8 (0.5)
Mobile service revenue 1,565 1,096 42.8 (52.1) 7.5 (1.8)
Fixed service revenue 410 411 (0.2) - 5.0 4.8
Other Europe 1,243 1,201 3.5 (1.6) (0.7) 1.2
Türkiye(1) 671 776 (13.5) 4.8 47.2 38.5
Africa 1,738 1,607 8.2 - 5.3 13.5
Common Functions(2) 183 165
Eliminations (30) (33)
Total service revenue 8,506 7,929 7.3 (7.8) 5.9 5.4
Other revenue 1,946 1,882
Revenue 10,452 9,811 6.5 (9.5) 6.0 3.0
Other growth metrics
Vodafone Business - Service revenue 2,054 2,051 0.1 (1.1) 4.0 3.0
Germany - Vodafone Business service revenue 583 594 (1.8) - - (1.8)
UK - Vodafone Business service revenue 536 560 (4.3) (6.1) 5.0 (5.4)
Other Europe - Vodafone Business service revenue 407 395 3.0 2.6 (0.9) 4.7
Türkiye - Vodafone Business service revenue 111 115 (3.5) 5.1 53.2 54.8
Africa - Vodacom Business service revenue 309 289 6.9 - 5.4 12.3
South Africa - Financial services revenue 48 46 4.3 - 4.1 8.4
Vodacom International M-Pesa revenue 133 113 17.7 - 6.9 24.6
Egypt - Financial services revenue (Vodafone Cash) 47 30 56.7 - 3.3 60.0
Adjusted EBITDAaL 2,816 2,828 (0.4) (2.6) 5.3 2.3
Notes:
1. Reported service revenue growth in Türkiye of -13.5% includes -17.2pps
in relation to the application of IAS 29 'Financial Reporting in
Hyperinflationary Economies'. Growth in Türkiye excluding the impact of this
hyperinflationary adjustment was 3.7%.
2. Comprises corporate functions and shared operations.
Non-GAAP measures
Other metrics
Non-GAAP measure Purpose Definition
Adjusted profit attributable to owners of the parent This metric is used in the calculation of Adjusted basic earnings per share. Adjusted profit attributable to owners of the parent excludes restructuring
costs arising from discrete restructuring plans, amortisation of customer
bases and brand intangible assets, impairment losses/reversals, other income
and expense, mark-to-market and foreign exchange movements and fair value
movements on Other investments through profit and loss, together with related
tax effects.
Adjusted basic earnings per share This performance measure is used in discussions with the investor community. Adjusted basic earnings per share is Adjusted profit attributable to owners of
the parent divided by the weighted average number of shares outstanding. This
is the same denominator used when calculating basic earnings per share.
Adjusted EBITDAaL and Adjusted profit attributable to owners of the parent
The table below reconciles Adjusted EBITDAaL and Adjusted profit attributable
to owners of the parent to their closest equivalent GAAP measures, being
Operating profit and Profit attributable to owners of the parent,
respectively.
FY26 FY25
Reported Adjustments Adjusted Reported Adjustments Adjusted
€m €m €m €m €m €m
Adjusted EBITDAaL 11,351 - 11,351 10,932 - 10,932
Restructuring costs (370) 370 - (164) 164 -
Interest on lease liabilities 615 - 615 488 - 488
Gain/(loss) on disposal of property, plant & equipment and intangible 199 - 199 (25) - (25)
assets
Depreciation and amortisation of owned assets(1) (8,481) 685 (7,796) (7,569) 605 (6,964)
Share of results of equity accounted associates and joint ventures(2) (382) 600 218 (123) 276 153
Impairment charge - - - (4,515) 4,515 -
Other (expense)/income (88) 88 - 565 (565) -
Operating profit/(loss) 2,844 1,743 4,587 (411) 4,995 4,584
Investment and other income 1,395 - 1,395 864 (247) 617
Financing costs(3) (2,375) 161 (2,214) (1,931) (1) (1,932)
Profit/(loss) before taxation 1,864 1,904 3,768 (1,478) 4,747 3,269
Income tax expense(4) (1,805) 807 (998) (2,246) 1,458 (788)
Profit/(loss) for the financial year - Continuing operations 59 2,711 2,770 (3,724) 6,205 2,481
Loss for the financial year - Discontinued operations (108) 108 - (22) 22 -
(Loss)/profit for the financial year (49) 2,819 2,770 (3,746) 6,227 2,481
(Loss)/profit attributable to:
- Owners of the parent (Continuing) (289) 2,865 2,576 (4,147) 6,205 2,058
- Owners of the parent (Total Group) (397) 2,973 2,576 (4,169) 6,227 2,058
- Non-controlling interests 348 (154) 194 423 - 423
(Loss)/profit for the financial year (49) 2,819 2,770 (3,746) 6,227 2,481
Notes:
1. Depreciation and amortisation on
owned assets excludes depreciation on leased assets and loss on disposal of
leased assets included within Adjusted EBITDAaL. See page 49 for an analysis
of depreciation and amortisation. The adjustment of €685 million (FY25:
€605 million) relates to amortisation of customer bases and brand intangible
assets.
2. See page 48 for a breakdown of the
adjustments to Share of results of equity accounted associates and joint
ventures to derive Adjusted share of results of equity accounted associates
and joint ventures.
3. See 'Net financing costs' on page 15
for further analysis.
4. See 'Adjusted tax metrics' on page 48
for further analysis.
Non-GAAP measures
Adjusted basic earnings per share
The reconciliation of Adjusted basic earnings per share to the closest
equivalent GAAP measure, Basic earnings per share, is provided below.
FY26 FY25
€m €m
Loss attributable to owners of the parent (397) (4,169)
Adjusted profit attributable to owners of the parent 2,576 2,058
Million Million
Weighted average number of shares outstanding - Basic 24,033 26,149
eurocents eurocents
Basic loss per share (1.65)c (15.94)c
Adjusted basic earnings per share 10.72c 7.87c
Cash flow, funding and capital allocation metrics
Cash flow and funding
Non-GAAP measure Purpose Definition
Free cash flow Internal performance reporting. Free cash flow is Adjusted EBITDAaL after cash flows in relation to capital
additions, working capital movements including in respect of capital
External metric used by the investor community. additions, disposal of property, plant and equipment and intangible assets,
integration capital additions and restructuring costs, together with related
Assists comparability with other companies, although our metric may not be working capital, licences and spectrum, interest received and paid (excluding
directly comparable to similarly titled measures used by other companies. interest on bank borrowings secured against Indian assets), taxation,
dividends received from associates and joint ventures, dividends paid to
non-controlling shareholders in subsidiaries, payments in respect of lease
liabilities and other.
Adjusted free cash flow Internal performance reporting. Adjusted free cash flow is Free cash flow before licences and spectrum,
restructuring costs arising from discrete restructuring plans, integration
External metric used by the investor community. capital additions and working capital related items.
Setting Director and management remuneration.
Key external metric used to evaluate liquidity and the cash generated by our
operations.
Gross debt Prominent metric used by debt rating agencies and the investor community. Non-current borrowings and current borrowings, excluding lease liabilities,
collateral liabilities and borrowings specifically secured against Indian
assets.
Net debt Prominent metric used by debt rating agencies and the investor community. Gross debt less cash and cash equivalents, short-term investments, non-current
investments in sovereign securities, derivative and other financial
instruments excluding mark-to-market adjustments and net collateral assets.
Non-GAAP measures
Cash flow and funding (continued)
The table below presents the reconciliation between Inflow from operating
activities and Free cash flow.
FY26 FY25
€m €m
Inflow from operating activities 14,291 15,373
Net tax paid 988 901
Cashflows from discontinued operations - (1,657)
Cash generated by operations 15,279 14,617
Capital additions (7,291) (6,862)
Working capital movement in respect of capital additions 241 404
Disposal of property, plant and equipment and intangible assets 48 9
Integration capital additions (209) (31)
Working capital movement in respect of integration capital additions 118 8
Licences and spectrum (404) (421)
Interest received and paid(1) (1,696) (1,598)
Taxation (914) (728)
Dividends received from associates and joint ventures 557 530
Dividends paid to non-controlling shareholders in subsidiaries (245) (249)
Payments in respect of lease liabilities (3,542) (3,288)
Payment for the future use of the Vodafone brand in Italy and Spain - (491)
Other (147) (50)
Free cash flow 1,795 1,850
Note:
1. Includes interest on lease
liabilities of €577 million (FY25: €451 million), excluding discontinued
operations.
The table below presents the reconciliation between Borrowings, Gross debt and
Net debt.
Year-end FY26 Year-end FY25
€m €m
Borrowings (52,636) (53,143)
Lease liabilities 12,388 10,826
Collateral liabilities 1,644 2,357
Gross debt (38,604) (39,960)
Collateral liabilities (1,644) (2,357)
Cash and cash equivalents 8,982 11,001
Non-current investments in sovereign securities 915 913
Short-term investments 3,431 5,280
Collateral assets 1,169 1,010
Derivative and other financial instruments 1,163 2,291
Less mark-to-market gains deferred in hedge reserves (823) (575)
Net debt (25,411) (22,397)
Non-GAAP measures
Return on Capital Employed
Non-GAAP measure Purpose Definition
Return on Capital Employed ('ROCE') ROCE is a metric used by the investor community and reflects how efficiently We calculate ROCE by dividing Operating profit by the average of capital
we are generating profit with the capital we deploy. employed as reported in the consolidated statement of financial position.
Capital employed includes borrowings, cash and cash equivalents, derivative
and other financial instruments included in trade and other
receivables/payables, short-term investments, non-current investments in
sovereign securities, collateral assets, financial liabilities under put
option arrangements and equity.
Pre-tax ROCE (controlled) As above. We calculate pre-tax ROCE (controlled) by using Operating profit excluding
interest on lease liabilities, restructuring costs arising from discrete
restructuring plans, impairment losses/reversals, other income and expense,
the impact of hyperinflationary adjustments and the share of results of equity
Post-tax ROCE (controlled and associates/joint ventures) accounted associates and joint ventures. On a post-tax basis, the measure
includes our Adjusted share of results from associates and joint ventures and
a notional tax charge. Capital is equivalent to net operating assets and is
based on the average of month end capital employed balances during the period
of: property, plant and equipment (including leased assets and lease
liabilities), intangible assets (including goodwill), operating working
capital (including held for sale assets and excluding derivative balances) and
provisions, excluding the impact of hyperinflationary adjustments. Other
assets that do not directly contribute to returns are excluded from this
measure and include other investments, current and deferred tax balances and
post employment benefits. On a post-tax basis, ROCE also includes our
investments in associates and joint ventures.
ROCE using GAAP measures
The table below presents the calculation of ROCE using GAAP measures as
reported in the consolidated income statement and consolidated statement of
financial position.
FY26 FY25
€m €m
Operating profit/(loss)(1) 2,844 (411)
Borrowings 52,636 53,143
Cash and cash equivalents (8,982) (11,001)
Derivative and other financial instruments included in trade and other (2,975) (4,197)
receivables
Derivative and other financial instruments included in trade and other 1,812 1,906
payables
Non-current investments in sovereign securities (915) (913)
Short-term investments (3,431) (5,280)
Collateral assets (1,169) (1,010)
Financial liabilities under put option arrangements 107 97
Equity 54,365 53,916
Capital employed at end of the year 91,448 86,661
Average capital employed for the year 89,055 95,898
ROCE using GAAP measures 3.2% (0.4)%
Note:
1. Operating profit/(loss) includes Other (expense)/income which includes
merger and acquisition activity that is non-recurring in nature.
Non-GAAP measures
ROCE using non-GAAP measures
The table below presents the calculation of ROCE using non-GAAP measures and
reconciliations to the closest equivalent GAAP measure.
FY26 FY25
€m €m
Operating profit/(loss) 2,844 (411)
Interest on lease liabilities (615) (488)
Restructuring costs 370 164
Other expense/(income) 88 (565)
Share of results of equity accounted associates and joint ventures 382 123
Impairment charge - 4,515
Other adjustments(1) 412 399
Adjusted operating profit for calculating pre-tax ROCE (controlled) 3,481 3,737
Adjusted share of results of equity accounted associates and joint ventures 110 (159)
used in post-tax ROCE(2)
Notional tax at Adjusted effective tax rate(3) (1,009) (905)
Adjusted operating profit for calculating post-tax ROCE (controlled and 2,582 2,673
associates/joint ventures)
Capital employed for calculating ROCE on a GAAP basis 91,448 86,661
Adjustments to exclude:
- Leases (12,388) (10,826)
- Deferred tax assets (18,068) (19,033)
- Deferred tax liabilities 1,043 798
- Taxation recoverable (186) (174)
- Taxation liabilities 555 578
- Other investments (2,437) (2,660)
- Associates and joint ventures (6,564) (6,796)
- Pension assets and liabilities (82) (55)
- Other adjustments(1) (1,196) (1,193)
Adjusted capital employed for calculating pre-tax ROCE (controlled) 52,125 47,300
Associates and joint ventures 6,564 6,796
Adjusted capital employed for calculating post-tax ROCE (controlled and 58,689 54,096
associates/joint ventures)
Average capital employed for calculating pre-tax ROCE (controlled) 52,563 53,146
Average capital employed for calculating post-tax ROCE (controlled and 59,322 61,030
associates/joint ventures)
Pre-tax ROCE (controlled) 6.6% 7.0%
Post-tax ROCE (controlled and associates/joint ventures) 4.4% 4.4%
Notes:
1. Comprises adjustments to exclude hyperinflationary accounting in
Türkiye.
2. Adjusted share of results of equity accounted associates and joint
ventures used in post-tax ROCE is a non-GAAP measure and excludes
restructuring costs and other income.
3. Includes tax at the Adjusted effective tax rate of 28.1% (FY25: 25.3%).
Non-GAAP measures
Financing and Taxation metrics
Non-GAAP measure Purpose Definition
Adjusted net financing costs This metric is used by both management and the investor community. Adjusted net financing costs exclude mark-to-market and foreign exchange
gains/losses, together with fair value movements on Other investments through
This metric is used in the calculation of Adjusted basic earnings per share. profit and loss.
Adjusted profit before taxation This metric is used in the calculation of the Adjusted effective tax rate (see Adjusted profit before taxation excludes the tax effects of items excluded
below). from Adjusted basic earnings per share, including: impairment
losses/reversals, amortisation of customer bases and brand intangible assets,
restructuring costs arising from discrete restructuring plans, other income
and expense, mark-to-market and foreign exchange movements and fair value
movements on Other investments through profit and loss.
Adjusted income tax expense This metric is used in the calculation of the Adjusted effective tax rate (see Adjusted income tax expense excludes the tax effects of items excluded from
below). Adjusted basic earnings per share, including: impairment losses/reversals,
amortisation of customer bases and brand intangible assets, restructuring
costs arising from discrete restructuring plans, other income and expense,
mark-to-market and foreign exchange movements and fair value movements on
Other investments through profit and loss. It also excludes deferred tax
movements relating to tax losses in Luxembourg as well as other significant
one-off items.
Adjusted effective tax rate This metric is used by both management and the investor community. Adjusted income tax expense (see above) divided by Adjusted profit before
taxation (see above).
Adjusted share of results of equity accounted associates and joint ventures This metric is used in the calculation of the Adjusted effective tax rate. Share of results of equity accounted associates and joint ventures excluding
restructuring costs, amortisation of acquired customer bases and brand
intangible assets and other income and expense.
Adjusted share of results of equity accounted associates and joint ventures This metric is used in the calculation of Post-tax ROCE (controlled and Share of results of equity accounted associates and joint ventures excluding
used in Post-tax ROCE associates/joint ventures). restructuring costs and other income and expense.
Non-GAAP measures
Adjusted tax metrics
The table below reconciles Profit before taxation and Income tax expense to
Adjusted profit before taxation, Adjusted income tax expense and Adjusted
effective tax rate.
FY26 FY25
€m €m
Profit/(loss) before taxation 1,864 (1,478)
Adjustments to derive Adjusted profit before tax 1,904 4,747
Adjusted profit before taxation 3,768 3,269
Adjusted share of results of equity accounted associates and joint ventures (218) (153)
Adjusted profit before tax for calculating Adjusted effective tax rate 3,550 3,116
Income tax expense (1,805) (2,246)
Tax on adjustments to derive Adjusted profit before tax (291) 8
Adjustments:
- Deferred tax on rate change in Germany 305 -
- Deferred tax on use of Luxembourg losses in the year 307 423
- Derecognition of certain UK deferred tax assets 358 -
- UK corporate interest restriction 23 16
- Tax relating to inflation-related adjustments in Türkiye 105 146
- Deferred tax on rate change in Luxembourg - 718
- Settlement of the VISPL tax cases - 185
- Other - (38)
Adjusted income tax expense for calculating Adjusted tax rate (998) (788)
Adjusted effective tax rate 28.1% 25.3%
Adjusted share of results of equity accounted associates and joint ventures
The table below reconciles Adjusted share of results of equity accounted
associates and joint ventures to the closest GAAP equivalent, Share of results
of equity accounted associates and joint ventures.
FY26 FY25
€m €m
Share of results of equity accounted associates and joint ventures (382) (123)
Restructuring costs, net of tax 21 21
Other (expense)/income, net of tax(1) 471 (57)
Adjusted share of results of equity accounted associates and joint ventures 110 (159)
used in Post-tax ROCE
Amortisation of acquired customer base and brand intangible assets, net of tax 108 312
Adjusted share of results of equity accounted associates and joint ventures 218 153
Note:
1. Includes €464 million in respect of the investment Oak Holdings 1
GmbH holds in Infrastrutture Wireless Italiane S.p.A. ('Inwit').
Additional information
Analysis of depreciation and amortisation
The table below presents an analysis of the different components of
depreciation and amortisation discussed in this document, reconciled to the
GAAP amounts in the consolidated income statement.
FY26 FY25
€m €m
Depreciation on leased assets - included in Adjusted EBITDAaL 3,674 3,205
Depreciation on leased assets - included in Restructuring costs 299 30
Depreciation on leased assets 3,973 3,235
Depreciation on owned assets 4,391 3,874
Amortisation of owned intangible assets 4,090 3,695
Depreciation and amortisation on owned assets 8,481 7,569
Total depreciation and amortisation on owned and leased assets 12,454 10,804
(Gain)/loss on disposal of owned fixed assets (199) 25
Gain on disposal of leased assets (4) (12)
Depreciation and amortisation - as recognised in the consolidated income 12,251 10,817
statement
Analysis of tangible and intangible additions
The table below presents an analysis of the different components of tangible
and intangible additions discussed in this document.
FY26 FY25
€m €m
Capital additions 7,291 6,862
Integration related capital additions 209 31
Licence and spectrum additions 1,083 236
Additions to customer bases 1 -
Additions 8,584 7,129
Intangible asset additions 3,234 2,655
Property, plant and equipment owned additions 5,350 4,474
Total additions 8,584 7,129
Definitions
Key terms are defined below. See page 37 for the location of definitions for
non-GAAP measures.
Term Definition
Africa Comprises the Vodacom Group.
ARPU Average revenue per user, defined as customer revenue and incoming revenue
divided by average customers.
Capital additions Comprises the purchase of property, plant and equipment and intangible assets,
other than licence and spectrum payments and integration capital expenditure.
Common Functions Comprises corporate functions and shared operations.
Depreciation and amortisation The accounting charge that allocates the cost of tangible or intangible
assets, whether owned or leased, to the income statement over its useful life.
The measure includes the profit or loss on disposal of property, plant and
equipment, software and leased assets.
Eliminations Refers to the removal of intercompany transactions to derive the consolidated
financial statements.
Europe Comprises the Group's European businesses and the UK.
Financial services revenue Financial services revenue includes fees generated from the provision of
advanced airtime, overdraft, financing and lending facilities, as well as
merchant payments and the sale of insurance products (e.g. device insurance,
life insurance and funeral cover).
Fixed service revenue Service revenue (see below) relating to the provision of fixed line and
carrier services.
FTTH Fibre to the home.
GAAP Generally Accepted Accounting Principles.
IFRS International Financial Reporting Standards.
Incoming revenue Comprises revenue from termination rates for voice and messaging to Vodafone
customers.
Indian assets Comprises the Group's investments in Indus Towers Limited and Vodafone Idea
Limited.
Integration capital additions Capital additions incurred in relation to significant changes in the operating
model, such as the integration of recently acquired subsidiaries.
Internet of Things ('IoT') The network of physical objects embedded with electronics, software, sensors,
and network connectivity, including built-in mobile SIM cards, that enable
these objects to collect data and exchange communications with one another or
a database.
MDU Multi Dwelling Units.
Mobile service revenue Service revenue (see below) relating to the provision of mobile services.
NPS Net Promoter Score.
Other Europe Other Europe markets comprise Portugal, Ireland, Greece, Romania, Czech
Republic and Albania.
Other revenue Other revenue principally includes equipment revenue, interest income, income
from partner market arrangements and lease revenue, including in respect of
the lease out of passive tower infrastructure.
Reported growth Reported growth is based on amounts reported in euros and determined under
IFRS.
Revenue The total of Service revenue (see below) and Other revenue (see above).
Roaming Roaming allows customers to make calls, send and receive texts and data on our
and other operators' mobile networks, usually while travelling abroad.
Service revenue Service revenue is all revenue related to the provision of ongoing services to
the Group's consumer and enterprise customers, together with roaming revenue,
revenue from incoming and outgoing network usage by non-Vodafone customers and
interconnect charges for incoming calls.
Vodafone Business Vodafone Business supports organisations in a digital world. With Vodafone's
expertise in connectivity, our leading IoT platform and our global scale, we
deliver the results that organisations need to progress and thrive. We support
businesses of all sizes and sectors.
Notes
1. References to Vodafone Group are to Vodafone Group Plc and its
subsidiaries unless otherwise stated. Vodafone, the Vodafone Speech Mark
Devices, Vodacom and everyone.connected are trademarks owned by Vodafone.
Other product and company names mentioned herein may be the trademarks of
their respective owners.
2. All growth rates reflect a comparison to the year ended 31 March 2025
unless otherwise stated.
3. References to "Q1", "Q2", "Q3" and "Q4" are to the three months ended
30 June, 30 September, 31 December and 31 March. References to the "year",
"financial year" or "FY26" are to the financial year ended 31 March 2026.
References to "last year", "last financial year" or "FY25" are to the
financial year ended 31 March 2025. References to "H1 FY26" are to the six
month period ended 30 September 2025. References to "H1 FY25" are to the six
month period ended 30 September 2024.
4. Vodacom refers to the Group's interest in Vodacom Group Limited as well
as its operations, including subsidiaries in South Africa, Egypt, DRC,
Tanzania, Mozambique and Lesotho.
5. This document contains references to our and our affiliates' websites.
Information on any website is not incorporated into this update and should not
be considered part of this update.
Forward-looking statements and other matters
This document contains 'forward-looking statements' within the meaning of the
US Private Securities Litigation Reform Act of 1995 with respect to the
Group's financial condition, results of operations and businesses and certain
of the Group's plans and objectives. In particular, such forward-looking
statements include, but are not limited to, statements with respect to: the
Group's portfolio transformation plan; expectations regarding the Group's
financial condition or results of operations and the guidance for Adjusted
EBITDAaL and Adjusted free cash flow for the financial year ending 31 March
2027; the integration of Skaylink, Telekom Romania and VodafoneThree; the
acquisition of an increased shareholding in Safaricom; the announced agreement
to acquire full ownership of VodafoneThree; general expectations for the
Group's future performance; expectations for the Group's dividend policy; the
Group's share buyback programme; expectations regarding the operating
environment and market conditions and trends, including customer usage,
competitive position and macroeconomic pressures, price trends and
opportunities in specific geographic markets; intentions and expectations
regarding the development, launch and expansion of products, services and
technologies, either introduced by Vodafone or by Vodafone in conjunction with
third parties or by third parties independently; expectations regarding the
integration or performance of current and future investments, associates,
joint ventures, non-controlled interests and newly acquired businesses; the
impact of regulatory and legal proceedings involving the Group and of
scheduled or potential regulatory changes; certain of the Group's plans and
objectives, including the Group's strategy.
Forward-looking statements are sometimes but not always identified by their
use of a date in the future or such words as 'will', 'may', 'expects',
'believes', 'continue', 'plans', 'further', 'ongoing', 'progress', 'targets'
or 'could'. By their nature, forward-looking statements are inherently
predictive, speculative and involve risk and uncertainty because they relate
to events and depend on circumstances that will occur in the future. There are
a number of factors that could cause actual results and developments to differ
materially from those expressed or implied by these forward-looking
statements. These factors include, but are not limited to the following:
general economic and political conditions in the jurisdictions in which the
Group operates and changes to the associated legal, regulatory and tax
environments; increased competition; levels of investment in network capacity
and the Group's ability to deploy new technologies, products and services,
including artificial intelligence; the Group's ability to optimise its
portfolio in line with its business transformation plan; evolving cyber
threats to the Group's services and confidential data; rapid changes to
existing products and services and the inability of new products and services
to perform in accordance with expectations; the ability of the Group to
integrate new technologies, products and services with existing networks,
technologies, products and services; the Group's ability to generate and grow
revenue; slower than expected impact of new or existing products, services or
technologies on the Group's future revenue, cost structure and capital
expenditure outlays; slower than expected customer growth, reduced customer
retention, reductions or changes in customer spending and increased pricing
pressure; the Group's ability to extend and expand its spectrum resources, to
support ongoing growth in customer demand for mobile data services; the
Group's ability to secure the timely delivery of high-quality products from
suppliers; loss of suppliers, disruption of supply chains, shortages and
greater than anticipated prices of new mobile handsets; changes in the costs
to the Group of, or the rates the Group may charge for, terminations and
roaming minutes; the impact of a failure or significant interruption to the
Group's telecommunications, data centres, networks, IT systems or data
protection systems; the Group's ability to realise expected benefits from
acquisitions, partnerships, joint ventures, associates, franchises, brand
licences, platform sharing or other arrangements with third parties, including
the combination of Vodafone's UK business with Three UK, the mobile network
sharing agreement with Virgin Media O2 and the Group's strategic partnerships
with Microsoft and Google; acquisitions and divestments of Group businesses
and assets and the pursuit of new, unexpected strategic opportunities; the
Group's ability to integrate acquired business or assets; the extent of any
future write-downs or impairment charges on the Group's assets, or
restructuring charges incurred as a result of an acquisition or disposal;
developments in the Group's financial condition, earnings and distributable
funds and other factors that the Board takes into account in determining the
level of dividends; the Group's ability to satisfy working capital
requirements; changes in foreign exchange rates; changes in the regulatory
framework in which the Group operates; the impact of legal or other
proceedings against the Group or other companies in the communications
industry; and changes in statutory tax rates and profit mix.
A review of the reasons why actual results and developments may differ
materially from the expectations disclosed or implied within forward-looking
statements can be found in the summary of our principal risks in the Group's
Annual Report for the year ended 31 March 2025 and under "Risk factors" and
"Forward-looking statements and other matters" in the Vodafone Group Plc H1
results for the six months ended 30 September 2025. The Annual Report can be
found on the Vodafone Group's website (vodafone.com/investors
(https://www.vodafone.com/investors) ). All subsequent written or oral
forward-looking statements attributable to Vodafone or any member of the
Vodafone Group or any persons acting on their behalf are expressly qualified
in their entirety by the factors referred to above. No assurances can be given
that the forward-looking statements in this document will be realised. Subject
to compliance with applicable law and regulations, Vodafone does not intend to
update these forward-looking statements and does not undertake any obligation
to do so.
Copyright © Vodafone Group 2026
-End-
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