Vodafone raises VodafoneThree annual cost and capex synergy target to £1 billion by FY32
VOD•Vodafone raised VodafoneThree’s annual cost and capital expenditure savings target to £1 billion by FY32, and its FY30 target to £800 million from £700 million. The transaction is expected to become free-cash-flow accretive by FY29.
1. Higher savings target
Vodafone raised VodafoneThree’s annual cost and capital expenditure savings target to £1 billion by FY32. The FY30 target increased to £800 million from £700 million, reflecting additional benefits from full ownership.
2. Financial outlook
Adjusted EBITDAaL is expected to grow at a mid- to high-single-digit compound annual rate through FY32, while operating free cash flow should more than triple. Capital expenditure is expected to peak at approximately £1.4 billion in FY27 under the £11 billion, 10-year investment program; the transaction is expected to become free-cash-flow accretive by FY29, with returns including goodwill expected to exceed the cost of capital by FY32.
