Vodafone starts a 'new chapter' forecasting stronger growth (updated)

Vodafone

12/05/2026 07:38

Vodafone forecasts higher core earnings after market exits

Germany remains a weak spot despite growth in other key markets

Full ownership of VodafoneThree follows exit from Spain, Italy, and Dutch JV

Updates throughout

By Paul Sandle

LONDON, May 12 (Reuters) - Vodafone VOD.L on Tuesday said a simpler business model focused on markets including Germany, Britain and Africa would deliver better service for its millions of broadband and mobile customers and stronger profit growth.

Chief Executive Margherita Della Valle said Vodafone had "broad-based momentum" after the steps she took to transform the company over the past three years.

"We are now well set for mid-term growth," she said.

For the year that ended in March, Vodafone reported core earnings of 11.4 billion euros ($13.4 billion), up 4.5% on an organic basis. For the current financial year, it expects core earnings of 11.9 billion euros to 12.2 billion euros.

Vodafone shares, which have risen during Della Valle's tenure to reach 122 pence on Monday, the highest point since August 2022, fell 4% in early trading.

Germany, its biggest market, continued to be a weak point as it saw revenue growth everywhere else it operates.

Della Valle said the German mobile market remained "very competitive" but Vodafone was growing in the consumer broadband and in business-to-business segments.

"We are taking the right actions on what is in our control, and these are supporting our turnaround," she said.

Growth in Britain was boosted by its merger with CK Hutchison's 0001.HK Three a year ago.

Vodafone last week agreed to buy its partner's 49% stake in VodafoneThree, taking full ownership of Britain's biggest mobile operator a year after it was created.

The deal was the final step in Della Valle's plan to focus on Vodafone's biggest markets. It had exited Spain and Italy and agreed to sell its 50% stake in Dutch joint venture VodafoneZiggo to partner Liberty Global LBTYA.O.

 (Reporting by Paul Sandle; Editing by Sarah Young, Mark Potter and Thomas Derpinghaus)

 ((paul.sandle@thomsonreuters.com; +44 20 7542 6843; Reuters Messaging: paul.sandle.thomsonreuters.com@reuters.net))