5th Feb 2026 09:13
(Alliance News) - Vodafone Group PLC on Tuesday started a new EUR500 million share buyback programme, as it reported a rise quarterly revenue and earnings and maintained guidance.
Vodafone shares were down 4.6% to 109.10 pence early Thursday in London. The wider FTSE 100 index was down 0.5%.
The Berkshire, England-based telecommunications said the share buyback will be run by Goldman Sachs International and will be completed by May 11, which is the day before Vodafone is scheduled to release its results for financial 2026.
Vodafone said the new buyback will add to EUR3.5 billion in repurchases completed since May 2024.
The company also on Thursday confirmed its annual guidance, saying adjusted earnings before interest, tax, depreciation and amortisation and after leases will be at the upper end of its financial 2026 guidance range of between EUR11.3 billion and EUR11.6 billion. This will be up from EUR10.9 billion in financial 2025.
In the three months that ended December 31, Vodafone's financial third quarter, adjusted Ebitdaal rose by 2.3% annually on an organic basis to EUR2.8 billion, phasing in line with full year guidance, the company noted. On a year-to-date basis, adjusted Ebitdaal increased by 5.3% on an organic basis to EUR8.5 billion.
Third quarter revenue was EUR10.45 billion, up 6.5% from EUR9.81 billion a year before. Service revenue climbed 7.3% to EUR8.51 billion from EUR7.93 billion. Service revenue increased by 0.7% in Germany, supported by higher wholesale revenue, but was down 0.5% in the UK.
Vodafone said the UK revenue decline was due to one-off project revenue in the Business division falling away.
More impressively, service revenue increased by 3.7% in Turkey and by 14% organically in Africa.
Vodafone said it continues to expect to deliver adjusted free cash flow of between EUR2.4 billion and EUR2.6 billion in financial 2026.
"We maintained good service revenue momentum in the third quarter across both Europe and Africa, supported by top-line growth in Germany, and strong contributions from Turkey and Africa," said Chief Executive Margherita Della Valle. "After a fast start, we are making very good progress with the integration of our UK business."
Back in June last year, Vodafone and Hong Kong's CK Hutchison Holdings Ltd completed the merger of the Vodafone and Three businesses in the UK. Vodafone holds 51% of the combined business, called VodafoneThree, and consolidates its results into its own. The remaining 49% is owned by CK Hutchison.
By Tom Waite, Alliance News editor
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