RNS Number : 3181S
Vodafone Group Plc
24 July 2025
Vodafone Group Plc Q1 FY26 Trading Update 24 July 2025
Encouraging progress in line with expectations "We have had a good start to the year with strong revenue and EBITDAaL growth. Germany has started its improvement trajectory and our emerging markets are delivering strong broad-based growth. In the UK, we have completed the merger with Three and are moving quickly to combine our networks to benefit customers. Today, we reiterate our full year guidance of growth in profit and cash flow. After two years of transformation and change, Vodafone is now well positioned for multi-year growth across both Europe and Africa." Margherita Della Valle Group Chief Executive
UK merger complete VodafoneThree now operational
Reiterated FY26 financial guidance
€2.5 billion Share buybacks to-date
4.9% Adjusted EBITDAaL growth
- Group total revenue: Increased by 3.9% to €9.4 billion in Q1 with strong service revenue growth. Revenue growth was also impacted by the consolidation of Three UK, offset by foreign exchange movements.
- Group service revenue: Grew by 5.3% in Q1 to €7.9 billion with higher revenue from the consolidation of Three UK offset by foreign exchange movements. On an organic basis service revenue increased 5.5% (Q4: 5.4%), with growth across all segments apart from Germany.
- Germany: Declined by 3.2% in Q1 (Q4: -6.0%), due to the impact of the TV law change. Excluding this, service revenue was broadly stable at -0.3% in Q1 (Q4: -2.7%), as mobile market competitive intensity was offset by Wholesale growth.
- UK: Organic service revenue increased by 0.9% in Q1 (Q4: 3.1%), with growth in our Consumer and Wholesale segments offset by a decline in Business due to planned managed services contract terminations.
- Other Europe & Türkiye: Organic service revenue growth in Other Europe of 0.2% (Q4: 0.8%) with good Business growth across the footprint offset by a decline in Consumer in Portugal and Romania. Service revenue in Türkiye increased by 29.6% in euro terms1.
- Africa: Continued strong organic service revenue growth of 13.8% in Q1 (Q4: 13.5%), supported by above-inflation growth in Egypt, and Vodacom's international markets, driven by demand for data and our financial services.
- Business: Organic service revenue grew by 4.0% (Q4: 5.1%), primarily driven by the strong demand for digital services across Europe and Africa.
- Group Adjusted EBITDAaL: Increased by 4.9% on an organic basis to €2.7 billion, as service revenue growth in most markets was partially offset by the impact of the TV law change in Germany and continued commercial investments. Adjusted EBITDAaL margin of 29.3% was 0.2 percentage points higher year-over-year on an organic basis. Operating profit decreased by 34.3% to €1.0 billion (see basis of preparation on page 7), primarily due to higher Other income in the prior year arising from the sale of our stake in Indus Towers.
- Share buybacks: On 20 May 2025 we launched the initial €0.5 billion tranche of a new €2.0 billion buyback programme following the conclusion of the first €2.0 billion buyback programme. This tranche is now complete, and a second €0.5 billion tranche commences today.
- UK merger: VodafoneThree started operating on 1 June 2025 and is now fully consolidated in our results. We have already started the integration, with our customers receiving the first benefits.
- Group FY26 guidance reiterated: Following the completion of the transaction, our guidance now includes the impact of the UK merger2, with Group Adjusted EBITDAaL of €11.3-€11.6 billion and Group Adjusted free cash flow of €2.4-€2.6 billion.
Note:
1 Excluding the impact of hyperinflationary accounting adjustments.
2 FY26 UK merger impact on a 10-month basis of €0.3 billion Adjusted EBITDAaL and -€0.2 billion Adjusted free cash flow.
For more information, please contact:
Investor Relations:
investors.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
A webcast Q&A session will be held at 10:00 BST on 24 July 2025. The webcast and supporting information can be accessed atinvestors.vodafone.com
Note:
1. Non-GAAP measure. See page 8 for more information.
Germany⫶Delivering expected service revenue improvements
34%of Group service revenue
Q1 FY26
Q1 FY25
Reported
Organic
€m
€m
change %
change %1
Total revenue
2,979
3,095
(3.7)
- Service revenue
2,688
2,778
(3.2)
(3.2)
- Other revenue
291
317
Note:
1. Non-GAAP measure. See page 8 for more information.
Growth
Total revenue decreased by 3.7% to €3.0 billion as a result of lower service and equipment revenue.
Service revenue improved quarter-on-quarter primarily driven by higher wholesale revenue and Business project phasing. Service revenue declined 3.2% (Q4: -6.0%) in Q1 due to a -2.9 percentage point impact (Q4: -3.3 percentage points) from the end to bulk TV contracting in Multi Dwelling Units ('MDUs').
Fixed service revenue decreased by 8.0% in Q1 (Q4: -9.7%) primarily due to the cumulative impact of fewer TV and broadband customers. The MDU transition had a -5.3 percentage point impact (Q4: -5.9 percentage points) on fixed service revenue growth in Q1. Our performance in the quarter was also impacted by lower consumer ARPU, partially offset by the demand for Business digital services.
Mobile service revenue grew by 2.7% in Q1 (Q4: -1.2%) driven by higher wholesale revenue following the continued migration of 1&1 customers onto our network. We continue to expect the migration to reach a full run-rate during H2 FY26. Growth was also supported by the phasing of digital services projects in Business. This was partially offset by ARPU pressure due to higher competitive intensity in the market.
Vodafone Business service revenue declined by 0.9% in Q1 (Q4: -2.8%), as pressure in core connectivity services was partially offset by strong digital services demand and the phasing of project work, which also contributed to the quarterly improvement.
Customers
Our broadband customer base declined by 23,000 during the quarter (Q4: -7,000), including -15,000 (Q4: -3,000) customers on our gigabit capable network. The greater decline was primarily due to our focus on driving front-book ARPU improvement through a reduction in promotional activity. 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 buildout is gaining momentum with c.100,000 additional homes passed in the quarter.
Our TV customer base increased by 28,000 (Q4: -81,000) reflecting our strategy to bundle basic TV services with broadband. This was partially offset by the ongoing decline in demand for standalone linear TV services.
Our mobile contract customer base declined by 36,000 (Q4: 12,000) in the quarter, due to the continued reduction of customers through resellers' channels and low ARPU Business disconnections. The overall competitive intensity in the mobile market impacted the number of new customer additions. However, thanks to the improvements we have made to our customer experience, our branded Consumer contract churn has continued to improve, supporting our overall base value. We connected a further 2.9 million IoT devices, driven by good demand from the automotive sector.
Operational actions
We continue to invest in customer experience, our brand and Business. As a result, we continue to see year-on-year improvements in customer satisfaction and a continued reduction in detractors. In May 2025 we announced that Vodafone will be the new main sponsor of eight-time German football champions Borussia Dortmund for the next five years, further enhancing our brand awareness in Germany. In July 2025, we enhanced our FamilyCard proposition by updating our unlimited data tariffs.
We remain on track with the simplification of our German operations. We are now more than halfway through the implementation of our 3,200 role reduction programme and have simplified our organisational structure.
UK⫶Merger complete forming VodafoneThree, the UK's leading mobile operator
21%of Group service revenue
Q1 FY26
Q1 FY25
Reported
Organic
€m
€m
change %
change %1
Total revenue
1,934
1,689
14.5
- Service revenue
1,646
1,429
15.2
0.9
- Other revenue
288
260
Note:
1. Non-GAAP measure. See page 8 for more information.
Growth
Total revenue increased by 14.5% to €1.9 billion due to the consolidation of Three UK's financial results following the completion of the merger on 31 May 2025. Service revenue increased by 15.2% (Q4: 5.7%), with organic growth in service revenue of 0.9% (Q4: 3.1%) as growth in Consumer and Wholesale was partially offset by a decline in Business.
Mobile service revenue grew by 19.6% (Q4: 4.4%), and organic growth in mobile service revenue was 0.4% (Q4: 1.8%) as growth in Wholesale was largely offset by lower price increases compared to the prior year. The slowdown in quarterly trends was driven by the delivery of Business project milestones in Q4. Mobile growth was also impacted by ARPU dilution as a result of a change in mix in the Three UK customer base, a trend which was expected and will be addressed through the benefits of the integration plan.
Fixed service revenue grew by 3.1% (Q4: 8.8%) and organic growth in fixed service revenue was 2.7% (Q4: 6.4%) with strong growth in Consumer, supported by higher ARPU and a larger customer base. This was partially offset by a decline in Business due to planned managed services contract terminations.
Vodafone Business service revenue declined by 0.8% (Q4: 3.7%). On an organic basis, Vodafone Business service revenue decreased by 3.0% (Q4: 1.3%) due to managed services contract terminations and continued mobile ARPU pressure. This was partially offset by good demand for fixed connectivity and digital services.
Customers
In mobile, our contract customer base declined by 46,000 in the quarter driven by the timing of large contract disconnections in Business and Three UK Consumer customer losses.
In fixed, we continue to be one of the fastest growing broadband providers in the UK and our customer base increased by 44,000 in Q1, supported by increased customer loyalty. We now cover 20.3 million households with gigabit speeds.
VodafoneThree Integration
On 31 May 2025, we successfully completed the merger of Vodafone UK and Three UK. The combined business, named VodafoneThree, is 51% owned by Vodafone and 49% by CK Hutchinson. As of 1 June 2025, we are now fully consolidating VodafoneThree in our financial results. VodafoneThree will invest £11 billion over the next 10 years creating one of Europe's most advanced 5G networks, giving millions of customers and businesses up and down the country a vastly superior mobile experience, and generate cost and capex synergies of £700 million per annum by the fifth year after completion. The completion announcement can be found here: Completion of Vodafone and Three merger in the UK.
VodafoneThree is now the biggest mobile network operator in the UK with 28.8 million customers, offering a multi-brand mobile strategy in consumer through the Vodafone, Three, VOXI, SMARTY and Talkmobile brands. We have made a fast start integrating the two businesses and delivering the best-in-class network and experience we promised our customers.
We are making immediate improvements to our network. Within just two weeks, through sharing of combined spectrum, 7 million Three and SMARTY customers have benefitted from improving 4G speeds by up to 40%. Within a few months, 28.8 million Vodafone and Three customers will start to benefit from seamlessly using both networks. By the end of the year this will remove a total of 16,500 km2 of 'not spot' areas.
We now expect to leverage our market leading customer experience with a focus on driving improved customer loyalty across the Three UK customer base. On top of the critical network improvements, we have also launched our 'Just Ask Once' promise which will set a new standard in customer service.
Other Europe1⫶Stable growth despite market conditions in Portugal
15%of Group service revenue
Q1 FY26
Q1 FY25
Reported
Organic
€m
€m
change %
change %2
Total revenue
1,375
1,382
(0.5)
- Service revenue
1,184
1,180
0.3
0.2
- Other revenue
191
202
Notes:
1. Other Europe markets comprise Portugal, Ireland, Greece, Romania, Czech Republic and Albania.
2. Non-GAAP measure. See page 8 for more information.
Growth
Total revenue declined 0.5% to €1.4 billion due to lower non-service revenue. Service revenue grew by 0.3% (Q4: 1.1%) and organic growth in service revenue was 0.2% (Q4: 0.8%) as growth in the Business segment supported by demand for digital services was offset by a decline in Consumer. The quarter-on-quarter slowdown was driven by continued ARPU pressure in Portugal.
In Portugal, as anticipated following the launch of a fourth player, service revenue was impacted by lower mobile ARPU, more than offsetting fixed-line growth. Despite increased competitive intensity in the market, our Contract customer base continues to grow. In Ireland, service revenue growth was supported by higher broadband and mobile Contract customer bases. This was partially offset by lower mobile contract ARPU. In Greece, service revenue was broadly stable as growth in mobile, supported by a higher Contract customer base, was partially offset by a decline in fixed.
Vodafone Business service revenue increased by 1.6% (Q4: 1.5%) in Q1, with organic growth in Vodafone Business service revenue of 1.5% (Q4: 1.2%) mainly driven by strong growth across most of our markets, supported by the demand for digital services.
Customers
We added 28,000 mobile contract customers and 3,000 broadband customers across our six markets in Q1.
Portfolio
In November 2024, we announced that, along with Digi Romania, we have signed a memorandum of understanding with Hellenic Telecommunications in relation to a potential acquisition of separate parts of its subsidiary Telekom Romania. The discussions are at an advanced stage with the regulatory approval process also underway.
Türkiye⫶Strong euro growth momentum sustained
8%of Group service revenue
Q1 FY26
Q1 FY25
Reported
Organic
€m
€m
change %
change %1,2
Total revenue
762
664
14.8
- Service revenue
629
515
22.1
63.8
- Other revenue
133
149
Notes:
1. Non-GAAP measure. See page 8 for more information.
2. Türkiye was designated as a hyperinflationary economy on 1 April 2022 in line with IAS 29 'Financial Reporting in Hyperinflationary Economies'. Organic growth metrics exclude the impacts of the hyperinflation adjustment and foreign exchange translation.
Growth
Total revenue increased by 14.8% to €0.8 billion, with service revenue growth partly offset by depreciation of the local currency versus the euro. Service revenue increased by 63.8% (Q4: 73.2%) on an organic basis. As reported under IAS 29, service revenue growth in euro terms was 22.1% (Q4: 15.2%). Excluding the impact of hyperinflationary accounting adjustments, service revenue increased by 29.6% in euro terms (Q4: 52.3%). Growth in Türkiye was primarily driven by ongoing price actions, value accretive base management and strong growth in Business.
Vodafone Business service revenue increased by 72.7% (Q4: 105.1%) on an organic basis, supported by growth in mobile connectivity, increased data centre usage and demand for digital services. In euro terms, Business service revenue increased by 28.6% (Q4: 38.0%) as reported under IAS 29.
Customers
We added 200,000 mobile contract customers during the quarter, including migrations of prepaid customers.
Africa⫶Growth across South Africa, Egypt & International markets
20%of Group service revenue
Q1 FY26
Q1 FY25
Reported
Organic
€m
€m
change %
change %1
Total revenue
1,932
1,813
6.6
- Service revenue
1,555
1,449
7.3
13.8
- Other revenue
377
364
Note:
1. Non-GAAP measure. See page 8 for more information.
Growth
Total revenue increased by 6.6% to €1.9 billion as higher service revenue was partly offset by the depreciation of local currencies versus the euro. Service revenue increased by 7.3% (Q4: 8.8%) and organic growth in service revenue was 13.8% (Q4: 13.5%), with growth in South Africa, Egypt and all of Vodacom's international markets, apart from Mozambique.
In South Africa, service revenue increased due to growth in the mobile contract segment, supported by price increases, and good demand for fixed connectivity. This was partially offset by a strong prior year comparative in the prepaid segment. Financial services revenue continued to perform well with organic growth of 5.8% (Q4: 3.0%), supported by demand for insurance products.
Service revenue growth in Egypt remained above inflation during the quarter due to sustained customer base growth and data demand. Price actions in prior quarters continued to contribute to service revenue growth. Our financial services product, 'Vodafone Cash' continued to grow with revenue increasing by 55.1% on an organic basis to €31 million in Q1, and now represents 7.6% of Egypt's service revenue.
In Vodacom's international markets, service revenue growth was supported by strong demand for data, an acceleration in M-Pesa revenue and an improvement in trends in Mozambique. M-Pesa revenue grew by 20.8% on an organic basis to €112 million and now represents 28.7% of service revenue.
Vodacom Business service revenue grew by 5.7% (Q4: 9.6%) and organic growth in Vodacom Business service revenue was 11.2% (Q4: 11.5%), driven by growth in mobile connectivity and strong demand for our digital services.
Customers
In South Africa, we lost 3,000 mobile contract customers in the quarter and now have a mobile contract base of 7.0 million. Across our active customer base, 77.5% of our mobile customers now use data services.
In Egypt, we launched 5G services during the quarter and added 78,000 contract customers and 636,000 prepaid mobile customers, and we now have 52.2 million mobile customers. 'Vodafone Cash' reached 12.0 million active users with 0.6 million users added during the quarter.
In Vodacom's international markets, we added 1.0 million mobile customers in Q1, and our mobile customer base is now 61.0 million, with 66.5% of active customers using our data services. Our M-Pesa customer base now totals 26.1 million active users with 0.9 million users added during the quarter.
Notes to the Q1 FY26 Trading update
Basis of preparation
Adjusted EBITDAaL and Operating profit has been extracted from the Group's unaudited consolidated financial statements for the three months ended 30 June 2025.
These financial statements, insofar as they are applicable to the calculation of Adjusted EBITDAaL and Operating profit, include all adjustments necessary for a fair statement of Adjusted EBITDAaL and Operating profit for the periods presented and 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 IASB and with the requirements of the UK Companies Act 2006, except no goodwill impairment assessment in accordance with IAS 36 "Impairment of Assets" has been conducted at 30 June 2025.
The preparation of the unaudited consolidated financial statements 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.
Critical accounting judgements and estimates
The Group's critical accounting judgements and estimates are disclosed in the Group's Annual Report for the year ended 31 March 2025.
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 is consolidating VodafoneThree into its financial results from 1 June 2025.
The Group has provisionally determined the fair value of the individual assets acquired and liabilities assumed at the date of merger. Consequently, depreciation and amortisation charges included in Operating profit for the month of June reflect the provisional fair values assigned to these individual assets.
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.
Service revenue growth in Türkiye excluding the impact of the hyperinflationary adjustments
Page 8
Service revenue
Pages 9 and 10
Group Adjusted EBITDAaL
Page 11
Operating profit
Page 11
Organic Group Adjusted EBITDAaL growth
Pages 8 and 11
Operating profit
Page 11
Organic percentage point change in Group Adjusted EBITDAaL margin
Pages 8 and 11
Operating profit
Page 11
Performance metrics
Organic growth
Organic growth presents performance on a comparable basis, excluding the impact of foreign exchange rates, mergers and acquisitions, the hyperinflation adjustments in Türkiye and other adjustments to improve the comparability of results between periods. The following organic growth metrics are provided:
- Revenue;
- Service revenue;
- Mobile service revenue;
- Fixed service revenue;
- Vodafone Business service revenue;
- South Africa - Financial services revenue;
- Vodacom International M-Pesa revenue;
- Egypt - Financial services 'Vodafone Cash' revenue;
- Group Adjusted EBITDAaL; and
- Group Adjusted EBITDAaL margin
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: (i) It provides additional information on underlying growth of the business without the effect of certain factors unrelated to its operating performance; (ii) It is used for internal performance analysis; and (iii) 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 hyperinflationary adjustment recorded in the Group's consolidated financial statements in accordance with IAS 29 'Financial Reporting in Hyperinflationary Economies'.
Non-GAAP measures
Note:
1. Reported service revenue growth in Türkiye of 22.1% includes -7.5pps in relation to the application of IAS 29 'Financial Reporting in Hyperinflationary Economies'. Growth in Türkiye excluding the impact of these hyperinflationary adjustment was 29.6%.
Non-GAAP measures
Quarter ended 31 March 2025
Reported growth
M&A and Other
Foreign exchange
Organic growth
Q4 FY25
Q4 FY24
€m
€m
%
pps
pps
%
Service revenue
Germany
2,670
2,839
(6.0)
-
-
(6.0)
Mobile service revenue
1,242
1,257
(1.2)
-
-
(1.2)
Fixed service revenue
1,428
1,582
(9.7)
-
-
(9.7)
UK
1,489
1,409
5.7
-
(2.6)
3.1
Mobile service revenue
1,057
1,012
4.4
-
(2.6)
1.8
Fixed service revenue
432
397
8.8
-
(2.4)
6.4
Other Europe
1,194
1,181
1.1
-
(0.3)
0.8
Türkiye1
605
525
15.2
22.1
35.9
73.2
Africa
1,614
1,484
8.8
-
4.7
13.5
Common Functions
176
140
Eliminations
(28)
(32)
Total service revenue
7,720
7,546
2.3
1.0
2.1
5.4
Other revenue
1,641
1,842
Revenue
9,361
9,388
(0.3)
1.0
2.1
2.8
Other growth metrics
Vodafone Business - Service revenue
2,062
1,979
4.2
0.6
0.3
5.1
Germany - Vodafone Business service revenue
588
605
(2.8)
-
-
(2.8)
UK - Vodafone Business service revenue
565
545
3.7
-
(2.4)
1.3
Other Europe - Vodafone Business service revenue
405
399
1.5
-
(0.3)
1.2
Türkiye - Vodafone Business service revenue
98
71
38.0
23.8
43.3
105.1
Africa - Vodacom Business service revenue
296
270
9.6
-
1.9
11.5
South Africa - Financial services revenue
44
40
10.0
-
(7.0)
3.0
Vodacom International M-Pesa revenue
114
98
16.3
-
(2.0)
14.3
Note:
1. Reported service revenue growth in Türkiye of 15.2% includes -37.1pps in relation to the application of IAS 29 'Financial Reporting in Hyperinflationary Economies'. Growth in Türkiye excluding the impact of these hyperinflationary adjustments was 52.3%.
Non-GAAP measures
Non-GAAP measure
Purpose
Definition
Group Adjusted EBITDAaL
Adjusted EBITDAaL is used in conjunction with financial measures such as operating profit to assess our operating performance and profitability. It is a key external metric used by the investor community to assess performance of our operations. It is our segment performance measure in accordance with IFRS 8 (Operating Segments).
Adjusted EBITDAaL is operating profit after depreciation on lease-related right of use assets and interest on lease liabilities but excluding depreciation, amortisation and gains/losses on disposal of owned assets and excluding share of results of equity accounted associates and joint ventures, impairment losses/reversals, restructuring costs arising from discrete restructuring plans, other income and expense and significant items that are not considered by management to be reflective of the underlying performance of the Group.
Group Adjusted EBITDAaL margin
Group Adjusted EBITDAaL margin is Group Adjusted EBITDAaL divided by Revenue.
The tables below provide the reconciliations of: (i) Group Adjusted EBITDAaL to Group Operating profit which is the closest equivalent GAAP measure; (ii) Reported growth in Group Adjusted EBITDAaL to organic growth in Group Adjusted EBITDAaL; and (iii) Reported growth in the Group Adjusted EBITDAaL margin and the organic growth in the Group Adjusted EBITDAaL margin.
Reported growth
M&A and Other
Foreign exchange
Organic growth
Q1 FY26
Q1 FY25
€m
€m
%
pps
pps
%
Group Adjusted EBITDAaL
2,748
2,681
2.5
(0.5)
2.9
4.9
Restructuring costs
(24)
(38)
Interest on lease liabilities
137
109
Profit on disposal of property, plant and equipment and intangible assets
1
2
Depreciation and amortisation of owned assets
(1,955)
(1,847)
Share of results of equity accounted associates and joint ventures
(7)
48
Other income
115
590
Group Operating profit1
1,015
1,545
Percentage point change in Adjusted EBITDAaL margin
29.3
29.7
(0.4)
0.6
-
0.2
Note:
1. See page 7 for more information on the basis of preparation.
Definitions
Key terms are defined below. See page 8 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.
Common Functions
Comprises central teams and business functions.
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.
Fixed service revenue
Service revenue (see below) relating to the provision of fixed line and carrier services.
GAAP
Generally Accepted Accounting Principles.
IFRS
International Financial Reporting Standards.
Incoming revenue
Comprises revenue from termination rates for voice and messaging to Vodafone customers.
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.
