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Vodafone Group maintains 2024 guidance after third quarter growth

5th Feb 2024 08:22

(Alliance News) - Vodafone Group on Monday said that its third quarter had shown sustained revenue growth in Europe and Africa, as the company reiterated its guidance for the full year.

The British telecommunications company said that total revenue for the quarter ended December 31 was EUR11.37 billion. This represents a 3% decrease from EUR11.64 billion in the third quarter of 2022, but a 4.2% jump on an organic basis.

Germany, the group's largest market, saw revenue grow slightly to EUR2.89 billion in the quarter from EUR2.88 billion a year prior.

Commercial trends have begun to improve in Germany, Vodafone said, with 0.3% service revenue growth compared to a 0.1% decline in the second quarter. The company is preparing for a change in the country's TV laws, which take effect from July, that will end the practice of bulk TV contracting in multifamily apartment complexes. Vodafone has begun migrating users to individual customer contracts "at scale", having already done so for between 35% and 65% of these households.

Vodafone Business revenue growth accelerated to 5.0% on an organic basis, thanks to "strong performance in digital services", the company said. Vodacom, the company's South Africa-based mobile communications company, increased revenue 8.8%, with growth across South Africa, Egypt and international markets. No revenue figures were provided alongside the percentage changes.

Vodafone reiterated its guidance for the full year ending March 31, and expects adjusted earnings before interest tax depreciation and amortisation of around EUR13.3 billion alongside roughly EUR3.3 billion in adjusted free cash flow. Last year, Vodafone posted Ebitda of EUR14.7 billion, alongside EUR45.71 billion in revenue.

Chief Executive Officer Margherita Della Valle said: "We've made good strategic progress in the first nine months of the year, with improving customer satisfaction and three consecutive quarters of service revenue growth in Europe. Our announced transactions in the UK and Spain are progressing well, and we are in active discussions in Italy."

Shares were down 1.2% at 67.76 pence each in London on Monday morning.

By Hugh Cameron, Alliance News reporter

Comments and questions to [email protected]

Copyright 2024 Alliance News Ltd. All Rights Reserved.

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