Vodafone narrows service revenue decline to 1.3%, boosts cash flow guidance
Vodafone narrowed its organic service revenue decline to 1.3% year-on-year in its latest quarter, driven by stronger customer additions in Germany and Italy. The operator reiterated its €2.5 billion cost-savings target by 2027 and lifted full-year free cash flow guidance by €150 million under its turnaround plan.
1. Trading Update Highlights
Vodafone reported that organic service revenue declined by 1.3% year-on-year in the latest quarter, an improvement from a 2.7% drop in the prior period. Growth in mobile customer net additions in Germany and Italy helped stabilise revenues and signalled early turnaround progress.
2. Cost-Savings and Cash Flow Targets
Management reaffirmed its goal of delivering €2.5 billion in cumulative cost savings by 2027, unchanged from previous guidance. At the same time, full-year free cash flow guidance was increased by €150 million, reflecting efficiency gains and lower capital expenditure.
3. Market Response and Outlook
Shares rose modestly on the trading update, as investors welcomed signs of stabilisation in revenue trends. Vodafone’s leadership highlighted ongoing execution of its turnaround plan, targeting further margin expansion and net debt reduction over the next two years.