REG - Vodafone Group Plc - Vodafone Q3 FY26 Trading Update
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RNS Number : 7801R Vodafone Group Plc 05 February 2026
Vodafone Group Plc
Q3 FY26 Trading Update
5 February 2026
Good Group performance, with growth in Europe and Africa
"We maintained good service revenue momentum in the third quarter across both
Europe and Africa, supported by top-line growth in Germany, and strong
contributions from Türkiye and Africa. After a fast start, we are making very
good progress with the integration of our UK business.
Looking ahead, we are on track to deliver at the upper end of our guidance
range for both profit and cash flow."
Margherita Della Valle
Group Chief Executive
Expecting to deliver at the upper end €3.5 billion 2.3%
of FY26 financial guidance Share buybacks to-date Adjusted EBITDAaL growth
- Group total revenue: Increased by 6.5% to €10.5 billion in Q3 with
strong service revenue growth, primarily supported by continued strong growth
in Africa and the consolidation of Three UK and Telekom Romania assets,
partially offset by foreign exchange movements.
- Group service revenue: Grew by 7.3% in Q3 to €8.5 billion as higher
revenue from the consolidation of Three UK and Telekom Romania assets were
partially offset by foreign exchange movements. On an organic basis, service
revenue increased 5.4% (Q2: 5.8%), with strong contributions from Türkiye and
Africa.
- Germany: Continued service revenue growth of 0.7% (Q2: 0.5%),
supported by higher wholesale revenue.
- UK: As expected, organic service revenue declined by 0.5% (Q2:
1.2%), reflecting the previously flagged prior year one-off project revenue in
Business. The integration of VodafoneThree is progressing well and firmly on
track.
- Other Europe & Türkiye: Organic service revenue in Other
Europe grew by 1.2% (Q2: -0.5%), as growth in most markets was offset by
competitive intensity in Portugal and Romania. Service revenue in Türkiye
increased by 3.7% in euro terms(1).
- Africa: Continued strong organic service revenue growth of 13.5%
(Q2: 13.5%), with continued growth across all markets, including an
acceleration in financial services.
- Business: Organic service revenue grew by 3.0% (Q2: 2.9%), driven
by continued demand for digital services and strong growth in Türkiye and
Africa, partially offset by a tougher prior year comparative in the UK.
- Group Adjusted EBITDAaL: Increased by 2.3% on an organic basis to
€2.8 billion, with phasing in line with our full year guidance expectations.
On a year-to-date basis, Adjusted EBITDAaL increased by 5.3% on an organic
basis to €8.5 billion.
- Operating profit: Decreased by 52.7% to €0.5 billion in Q3 (see
basis of preparation on page 7), due to M&A including the temporary
non-cash accounting impacts of our Indian simplification activities.
- Shareholder returns: €3.5 billion of share buybacks now complete
(since May 2024). Our next €500 million tranche commences today.
- FY26 guidance reiterated(2): We continue to expect to deliver the
upper end of our FY26 guidance ranges of Adjusted EBITDAaL of €11.3-11.6
billion and Adjusted free cash flow of €2.4-2.6 billion.
- Progressive dividend policy: Reflecting our medium-term outlook for
Adjusted free cash flow growth, in November 2025 we announced that we expect
to grow the FY26 dividend per share by 2.5%.
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: vodafone.com (https://www.vodafone.com/investors) ir@vodafone.co.uk Media Relations: Vodafone.com/media/contacts 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 5 February 2026. The
webcast and supporting information can be accessed at vodafone.com
(https://www.vodafone.com/investors)
Segment performance
Geographic performance summary
Service revenue Other revenue Total revenue
Q3 FY26 Q3 FY25 Q3 FY26 Q3 FY25 Q3 FY26 Q3 FY25
€m €m €m €m €m €m
Germany 2,726 2,706 366 384 3,092 3,090
UK 1,975 1,507 466 358 2,441 1,865
Other Europe(1) 1,243 1,201 266 235 1,509 1,436
Türkiye 671 776 152 187 823 963
Africa 1,738 1,607 470 465 2,208 2,072
Common Functions 183 165 245 268 428 433
Eliminations (30) (33) (19) (15) (49) (48)
Group 8,506 7,929 1,946 1,882 10,452 9,811
Service revenue growth FY25 FY26
Q1 Q2 H1 Q3 Q4 H2 Total Q1 Q2 H1 Q3
% % % % % % % % % % %
Germany (1.5) (6.2) (3.9) (6.4) (6.0) (6.2) (5.0) (3.2) 0.5 (1.4) 0.7
UK 2.0 2.9 2.4 7.6 5.7 6.7 4.5 15.2 38.0 26.7 31.1
Other Europe(1) 1.6 2.1 1.9 2.2 1.1 1.7 1.8 0.3 0.1 0.2 3.5
Türkiye 54.7 18.8 33.2 97.5 15.2 50.4 42.3 22.1 18.7 20.3 (13.5)
Africa 1.6 0.3 0.9 4.1 8.8 6.4 3.7 7.3 8.4 7.9 8.2
Group 3.2 0.2 1.7 5.6 2.3 4.0 2.8 5.3 10.8 8.1 7.3
Organic service revenue growth(2) FY25 FY26
Q1 Q2 H1 Q3 Q4 H2 Total Q1 Q2 H1 Q3
% % % % % % % % % % %
Germany (1.5) (6.2) (3.9) (6.4) (6.0) (6.2) (5.0) (3.2) 0.5 (1.4) 0.7
UK - 1.2 0.6 3.3 3.1 3.2 1.9 0.9 1.2 1.1 (0.5)
Other Europe(1) 2.3 2.6 2.5 2.6 0.8 1.7 2.1 0.2 (0.5) (0.1) 1.2
Türkiye 91.9 89.1 90.3 83.4 73.2 78.1 83.4 63.8 48.4 55.6 38.5
Africa 10.0 9.7 9.9 11.6 13.5 12.6 11.3 13.8 13.5 13.7 13.5
Group 5.4 4.2 4.8 5.2 5.4 5.3 5.1 5.5 5.8 5.7 5.4
Group profitability FY25 FY26
Q1 Q2 H1 Q3 Q4 H2 Total Q1 Q2 H1 Q3
Operating profit/(loss) (€m) 1,545 837 2,382 1,022 (3,815) (2,793) (411) 1,015 1,147 2,162 483
Adjusted EBITDAaL (€m)(2) 2,681 2,730 5,411 2,828 2,693 5,521 10,932 2,748 2,980 5,728 2,816
Adjusted EBITDAaL margin %(2) 29.7 29.5 29.6 28.8 28.8 28.8 29.2 29.3 29.1 29.2 26.9
Organic Adjusted EBITDAaL growth %(2) 5.1 2.5 3.8 2.2 0.3 1.3 2.5 4.9 8.7 6.8 2.3
Notes:
1. Other Europe markets comprise Portugal, Ireland, Greece, Romania, Czech
Republic and Albania.
2. Non-GAAP measure. See page 8 for more information.
Germany ⫶ Continued service revenue growth
32% of Group service revenue Q3 FY26 Q3 FY25 Reported Organic
€m €m change % change %(1)
Total revenue 3,092 3,090 0.1
- Service revenue 2,726 2,706 0.7 0.7
- Other revenue 366 384
Note:
1. Non-GAAP measure. See page 8 for more information.
Growth
Total revenue increased by 0.1% to €3.1 billion as service revenue growth
was offset by lower equipment revenue. Service revenue increased by 0.7% (Q2:
0.5%) due to higher wholesale revenue and strong demand for digital services
in Business, partially offset by mobile ARPU pressure due to competitive
intensity. The sequential improvement in growth in the quarter was driven by
higher mobile wholesale revenue, which was partially offset by the phasing of
service provider payments.
Mobile service revenue grew by 2.8% in Q3 (Q2: 3.8%) as higher wholesale
revenue was partially offset by continued ARPU pressure, and the phasing of
service provider payments. By the end of the quarter, we had successfully
completed the migration of 1&1 customers onto our network. We now have
more than 12 million 1&1 customers using our nationwide 5G network and
expect the revenue contribution to reach full run-rate in Q4 FY26.
Fixed service revenue decreased by 1.1% in Q3 (Q2: -2.3%), as TV headwinds
were partially offset by strong demand for digital services in Business.
Consumer broadband revenue has now stabilised supported by the retail pricing
actions that we implemented between March 2025 and October 2025. As a result
of these actions, broadband ARPU from new customers in the quarter was the
highest in 3 years (+21.0% year-on-year). In January 2026, we announced
additional changes to our broadband portfolio which are expected to further
support ARPU trends.
Vodafone Business service revenue declined by 1.8% in Q3 (Q2: -1.6%), as lower
mobile ARPU from customer contract renewals and pressure in core connectivity
services were partially offset by strong digital services demand. 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.
Customers
Despite continued competitive intensity in the mobile market, our Consumer
contract customer base increased by 42,000 (Q2: 1,000) in the quarter. Growth
in our total mobile contract customer base included 31,000 Business
disconnections. We connected a further 2.6 million IoT devices, driven by good
demand from the automotive sector.
Our broadband customer base declined by 63,000 during the quarter (Q2:
-26,000), including a 47,000 decline
(Q2: -15,000) in customers on our gigabit capable network. The greater decline
was primarily due to our focus on value as we continue to drive ARPU
improvements 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 460,000 homes passed and we are now able to market
to 1.5 million homes.
Our TV customer base declined by 6,000 (Q2: 62,000). The structural decline in
demand for standalone linear TV services was partially offset by our strategy
to bundle basic TV with our broadband services.
Value-focused actions
We continue to focus on delivering value across our mobile and broadband
products through our enhanced propositions. In broadband, higher ARPU from new
customers was delivered through our price actions which included reduced
promotions and an increase in one-time connection and in-home equipment fees.
This will be further supported by 'more-for-more' speed upgrades launched in
January 2026. In mobile, our Vodafone branded customer base continued to
increase, driven by our enhanced product propositions and the continued growth
in our customer satisfaction quarter-after-quarter, underpinned by our
value-focused strategy.
UK ⫶ Good progress in line with expectations
23% of Group service revenue Q3 FY26 Q3 FY25 Reported Organic
€m €m change % change %(1)
Total revenue 2,441 1,865 30.9
- Service revenue 1,975 1,507 31.1 (0.5)
- Other revenue 466 358
Note:
1. Non-GAAP measure. See page 8 for more information.
Growth
Total revenue increased by 30.9% to €2.4 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 31.1% (Q2: 38.0%). As expected, organic
service revenue declined 0.5% (Q2: 1.2%), reflecting strong prior year
comparatives offsetting continued good commercial momentum in both Consumer
and Wholesale.
Mobile service revenue increased by 42.8% (Q2: 51.6%), and, as anticipated,
organic growth in mobile service revenue was -1.8% (Q2: 0.4%), primarily due
to a strong comparative in both Business and Wholesale in the prior year.
Fixed service revenue declined by 0.2% (Q2: 1.8%) and organic growth in fixed
service revenue was 4.8% (Q2: 4.3%) with strong growth in Consumer broadband,
partially offset by a decline in Business due to the continued impact of
planned managed services contract terminations.
Vodafone Business service revenue declined by 4.3% (Q2: 1.5%). On an organic
basis, Vodafone Business service revenue decreased by 5.4% (Q2: -1.7%). The
step down in the quarter was due to the previously flagged one-off project
revenue in the prior year.
Customers
In mobile, our contract customer base declined by 73,000 in the quarter,
primarily driven by the disconnection of 53,000 very low-value Business SIMs.
Three UK Consumer customer losses continued but, customer loyalty continued to
improve across all brands, supported by our best-in-class customer experience,
with Consumer contract churn reducing 1.7 percentage points year-on-year. Our
prepaid brands, VOXI and SMARTY, continued to grow with 38,000 customer
additions in Q3.
In fixed, we are the fastest growing broadband provider in the UK and our
customer base increased by 64,000 in Q3. We now have the ability to serve 22
million households with gigabit speeds. In the quarter, we added 11,000 fixed
wireless access (FWA) customers, reported under the mobile segment.
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)
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. In November 2025, we
launched our 'Vodafone Together Family' proposition which enables households
to combine mobile and broadband services and rewards, alongside 'Vodafone
Secure Net', our market leading security platform.
We have made a fast start with our merger integration including significant
network improvements as part of our promise to deliver a best-in-class
experience. Our spectrum and network sharing activation is ahead of plan, with
28.6 million Vodafone and Three customers already benefiting from seamlessly
using both networks and we have upgraded over 8,000 radio sites, removing a
total of 16,500 km(2) of 'not spot' areas. Seven million Three and SMARTY
customers are benefiting from improved 4G speeds of up to 40%, through sharing
of combined spectrum.
Other Europe(1) ⫶ Reacceleration supported by Business growth
15% of Group service revenue Q3 FY26 Q3 FY25 Reported Organic
€m €m change % change %(2)
Total revenue 1,509 1,436 5.1
- Service revenue 1,243 1,201 3.5 1.2
- Other revenue 266 235
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 increased 5.1% to €1.5 billion due to the consolidation of
Telekom Romania Mobile Communications S.A's financial results following the
completion of the asset acquisition on 1 October 2025. Service revenue
increased by 3.5% (Q2: 0.1%) and organic growth in service revenue was 1.2%
(Q2: -0.5%) as growth in Albania, Czech Republic, Ireland and Greece was
partially offset by continued ARPU pressure in Portugal and higher competitive
intensity in Romania. The improved performance in Q3 compared with Q2 was
primarily driven by Business revenue.
In Portugal, service revenue declined in the quarter as a result of
competitive intensity in the market, which continued to impact mobile ARPU.
Despite this, both our mobile contract and broadband customer base continued
to grow. In Ireland, service revenue growth was supported by a higher customer
base and price actions across mobile and fixed.
Vodafone Business service revenue increased by 3.0% (Q2: -1.0%) in Q3, with
organic growth of 4.7% (Q2: -1.4%) mainly driven by project delivery in Greece
and Romania, as well as demand for digital services.
Customers
We added 80,000 mobile contract customers and 4,000 broadband customers across
our six markets in Q3. This was despite the net loss of 70,000 mobile contract
customers on the newly acquired Telekom Romania brand in Romania.
Portfolio
On 1 October 2025, we completed the acquisition of assets of Telekom Romania
Mobile Communications S.A for €30 million, strengthening our position in the
market. The integration is fully underway and we are migrating the contract
customer base.
Türkiye ⫶ Continued strong organic growth despite inflation moderating
8% of Group service revenue Q3 FY26 Q3 FY25 Reported Organic
€m €m change % change %(1,2)
Total revenue 823 963 (14.5)
- Service revenue 671 776 (13.5) 38.5
- Other revenue 152 187
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 declined by 14.5% to €0.8 billion, with service revenue growth
offset by depreciation of the local currency. Organic service revenue
increased by 38.5% (Q2: 48.4%). As reported under IAS 29, service revenue
growth in euro terms declined by 13.5% (Q2: 18.7%). Excluding the impact of
hyperinflationary accounting adjustments, service revenue increased by 3.7% in
euro terms (Q2: 14.8%), driven by ongoing price actions, value accretive base
management and strong growth in Business.
Vodafone Business service revenue increased by 54.8% (Q2: 59.8%) on an organic
basis, supported by demand for digital services and core connectivity.
Customers
We added 212,000 mobile contract customers during the quarter, including
migrations of prepaid customers.
5G Spectrum
On 16 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. Vodafone Türkiye
will launch 5G services during 2026. We also renewed all of our existing
spectrum holdings, which were due to expire in 2029, until 2042.
Africa ⫶ Continued growth across all markets
20% of Group service revenue Q3 FY26 Q3 FY25 Reported Organic
€m €m change % change %(1)
Total revenue 2,208 2,072 6.6
- Service revenue 1,738 1,607 8.2 13.5
- Other revenue 470 465
Notes:
1. Non-GAAP measure. See page 8 for more information.
2. Based on the Euro to Kenyan shilling exchange rate at announcement date (4
December 2025) of €1 : 150.5 KES.
Growth
Total revenue increased by 6.6% to €2.2 billion as higher service revenue
was partly offset by the depreciation of local currencies. Service revenue
increased by 8.2% (Q2: 8.4%) and organic service revenue growth was 13.5% (Q2:
13.5%), with growth across all Vodacom markets.
In South Africa, service revenue increased as good growth in Business was
partially offset by a strong prior year comparative in the mobile prepaid
segment. Financial services growth accelerated in the quarter with organic
growth of 8.4% (Q2: 6.9%), supported by demand for insurance products.
Service revenue growth in Egypt remained well above inflation during the
quarter due to sustained customer base growth and strong data demand. This was
partially offset by the anniversary of price increases implemented in the
prior year following increased regulatory price floors. Our financial services
product, 'Vodafone Cash' continued to grow at a strong rate with revenue
increasing by 60.0% on an organic basis to €47 million in Q3, now
representing 9.9% of Egypt's service revenue.
In Vodacom's international markets, there was a continued improvement in
trends in Mozambique and an acceleration in the DRC. Service revenue growth in
international markets was supported by an acceleration in M-Pesa revenue and
strong demand for data. M-Pesa revenue grew by 24.6% on an organic basis to
€133 million and now represents 30.2% of service revenue.
Vodacom Business service revenue grew by 6.9% (Q2: 5.8%) and organic growth in
Vodacom Business service revenue was 12.3% (Q2: 10.8%), supported by strong
demand for mobile connectivity and digital services, in particular IoT.
Customers
In South Africa, we gained 471,000 mobile customers in the quarter and now
have a mobile customer base of over 49 million. Across our active customer
base, 73.6% of our mobile customers now use data services.
In Egypt, we added 130,000 mobile contract customers and 959,000 mobile
prepaid customers, supported by our market-leading NPS, and we now have a
total of 55.2 million mobile customers. 'Vodafone Cash' reached 13.5 million
active users, with 0.9 million users added during the quarter.
In Vodacom's international markets, we added 2.0 million mobile customers in
Q3, and our mobile customer base is now 65.7 million, with 66.3% of active
customers using our data services. Our M-Pesa customer base now totals 28.4
million active users, with 1.2 million users added during the quarter.
Portfolio
In November 2025, the Communications Authority of South Africa, ICASA,
approved Vodacom's proposed fibre joint venture with Maziv Proprietary Limited
and the transaction closed on 1 December 2025. This transaction increases the
scale of the country's leading 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 (the "Acquisition"). Vodacom will acquire 15% from
the Government of Kenya for a cash consideration of €1.36 billion(2) and 5%
from Vodafone for a cash consideration of €0.45 billion(2). 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.
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. Completion of the Acquisition is subject to a
number of conditions, including, but not limited to, regulatory approvals in
Kenya, South Africa and Ethiopia. The Acquisition is expected to close in the
first quarter of the 2026 calendar year.
Notes to the Q3 FY26 Trading update
Basis of preparation
Adjusted EBITDAaL and Operating profit has been extracted from the Group's
unaudited consolidated financial statements for the nine months ended 31
December 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 impairment
assessment in accordance with IAS 36 "Impairment of Assets" or IAS 28
"Investments in Associates and Joint Ventures" has been conducted at 31
December 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. The purchase price allocations for the
acquisitions of Three UK on 31 May 2025, and of a non-controlling interest in
Maziv Proprietary Limited ('Maziv') on 1 December 2025, remain provisional.
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.
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 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'.
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.
Judgements relating to impairment testing
Oak Holdings 1 GmBH, a 50% owned Joint Venture of the Group, retains a 37.6%
interest in Infrastrutture Wireless Italiane S.p.A. ('Inwit'). During the
three months ended 31 December 2025, the Inwit share price declined
significantly. The implications of this decline in share price will be
reflected in impairment testing to be performed by Oak Holdings 1 GmBH, the
results of which will be reported as part of our FY26 financial results in
May.
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 Defined on page Closest equivalent GAAP measure Reconciled on page
Performance metrics
Organic revenue growth Page 8 Revenue Pages 9 and 10
Organic service revenue growth Page 8 Service revenue Pages 9 and 10
Organic mobile service revenue growth Page 8 Service revenue Pages 9 and 10
Organic fixed service revenue growth Page 8 Service revenue Pages 9 and 10
Organic Vodafone Business service revenue growth Page 8 Service revenue Pages 9 and 10
South Africa: Financial services organic revenue growth Page 8 Service revenue Pages 9 and 10
Vodacom International: M-Pesa organic revenue growth Page 8 Service revenue Pages 9 and 10
Egypt: Financial services (Vodafone Cash) organic revenue growth 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 Group Adjusted EBITDAaL margin growth 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
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: (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
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 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
Note:
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%.
Non-GAAP measures
Quarter ended 30 September 2025
Reported growth M&A and Other Foreign exchange Organic growth
Q2 FY26 Q2 FY25
€m €m % pps pps %
Service revenue
Germany 2,737 2,722 0.5 - - 0.5
Mobile service revenue 1,315 1,266 3.8 - - 3.8
Fixed service revenue 1,422 1,456 (2.3) - - (2.3)
UK 2,018 1,462 38.0 (40.3) 3.5 1.2
Mobile service revenue 1,612 1,063 51.6 (55.1) 3.9 0.4
Fixed service revenue 406 399 1.8 - 2.5 4.3
Other Europe 1,231 1,230 0.1 - (0.6) (0.5)
Türkiye(1) 698 588 18.7 1.4 28.3 48.4
Africa 1,628 1,502 8.4 - 5.1 13.5
Common Functions 196 176
Eliminations (39) (36)
Total service revenue 8,469 7,644 10.8 (8.1) 3.1 5.8
Other revenue 1,755 1,596
Revenue 10,224 9,240 10.6 (9.2) 3.2 4.6
Other growth metrics
Vodafone Business - Service revenue 2,027 1,979 2.4 (1.7) 2.2 2.9
Germany - Vodafone Business service revenue 589 598 (1.6) - - (1.6)
UK - Vodafone Business service revenue 540 532 1.5 (5.9) 2.7 (1.7)
Other Europe - Vodafone Business service revenue 385 389 (1.0) - (0.4) (1.4)
Türkiye - Vodafone Business service revenue 109 85 28.2 1.5 30.1 59.8
Africa - Vodacom Business service revenue 292 276 5.8 - 5.0 10.8
South Africa - Financial services revenue 45 44 2.3 - 4.6 6.9
Vodacom International - M-Pesa revenue 121 101 19.8 - 2.8 22.6
Egypt - Financial services revenue (Vodafone Cash) 36 27 33.3 - 9.7 43.0
Note:
1. Reported service revenue growth in Türkiye of 18.7% includes 3.9pps in
relation to the application of IAS 29 'Financial Reporting in
Hyperinflationary Economies'. Growth in Türkiye excluding the impact of
this hyperinflationary adjustment was 14.8%.
Non-GAAP measures
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.
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
Q3 FY26 Q3 FY25
€m €m % pps pps %
Group Adjusted EBITDAaL 2,816 2,828 (0.4) (2.6) 5.3 2.3
Restructuring costs (143) (40)
Interest on lease liabilities 158 127
Profit/(loss) on disposal of property, plant and equipment and intangible 13 (4)
assets
Depreciation and amortisation of owned assets (2,206) (2,018)
Share of results of equity accounted associates and joint ventures (30) (26)
Other (expense)/income (125) 155
Group Operating profit(1) 483 1,022
Percentage point change in Adjusted EBITDAaL margin 26.9 28.8 (1.9) 1.8 (0.1) (0.2)
Reported growth M&A and Other Foreign exchange Organic growth
YTD FY26 YTD FY25
€m €m % pps pps %
Group Adjusted EBITDAaL 8,544 8,239 3.7 (2.3) 3.9 5.3
Restructuring costs (329) (98)
Interest on lease liabilities 450 347
Profit/(loss) on disposal of property, plant and equipment and intangible 168 (16)
assets
Depreciation and amortisation of owned assets (6,301) (5,690)
Share of results of equity accounted associates and joint ventures 152 (66)
Other (expense)/income (39) 688
Group Operating profit(1) 2,645 3,404
Percentage point change in Adjusted EBITDAaL margin 28.4 29.3 (0.9) 1.2 - 0.3
Note:
1. See page 7 for 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.
Notes
1. References to Vodafone are to Vodafone Group Plc and 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 quarter ended 31 December
2024 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 ending 31 March 2026.
References to "last year", "last financial year" or "FY25" are to the
financial year ended 31 March 2025. References to "YTD" are to the nine months
ended 31 December.
4. Vodacom refers to the Group's interest in Vodacom Group Limited
('Vodacom') 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
2026; the integration of Skaylink, Telekom Romania and VodafoneThree; the
acquisition of Safaricom; expectations for the Group's future performance
generally; 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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