4th Feb 2025 09:09
(Alliance News) - Vodafone Group PLC on Tuesday said it saw growth in revenue for the third quarter, driven by an uptick in UK income and group service revenue.
The telecommunications firm said revenue in the three months to December 31 rose 4.8% on-year to EUR9.81 billion from EUR9.35 billion, boosted by a 5.6% growth in group service revenue to EUR7.93 billion from EUR7.51 billion.
"This was driven by a step-up in the UK and strong performance in Turkiye and Africa, whilst Germany is impacted by the TV law change," said Chief Executive Margherita Della Valle.
A law change in Germany last year saw the end of bulk TV contracting in multi dwelling units.
"We are continuing to invest in the turnaround of our German business and we are starting to see improving customer trends, although conditions have become more challenging in the mobile market," Della Valle continued.
Organic service revenue growth in the UK accelerated to 3.3% during the quarter, Vodafone said, largely due to the "significant investments" it has made to the customer experience.
Adjusted earnings before interest, tax, depreciation, amortisation and adjusted loss reached EUR2.8 billion at the end of the quarter, up 2.2% from last year on an organic basis.
Vodafone also on Tuesday said it intends to launch a share buyback programme for up to EUR480 million, as the final tranche of an ongoing EUR2 billion programme.
CEO Della Valle added: "During the quarter, we completed the sale of Italy for EUR8 billion and received regulatory approval for Vodafone's merger with Three in the UK. When the UK merger completes in the next few months, we will have fully executed Vodafone's reshaping for growth.
"We are on track to grow in line with our full year guidance for this year, which we reiterate today, and are looking forward to a stronger Vodafone in the years ahead."
Vodafone maintains its target of delivering adjusted Ebitdaal of around EUR11 billion for the financial year ending March 31, compared to an adjusted Ebitda after leases of EUR11.02 billion in financial 2024.
Shares in Vodafone were down 6.1% at 65.74 pence each in London on Tuesday morning.
By Emily Parsons, Alliance News reporter
Comments and questions to [email protected]
Copyright 2025 Alliance News Ltd. All Rights Reserved.