Vodafone Group H1 FY26 Results

Financial highlights

- Total revenue: Increased by 7.3% to €19.6 billion in H1 (H1 FY25: €18.3 billion) due to strong service revenue growth and the consolidation of Three UK, partially offset by adverse foreign exchange movements.

- Service revenue: On a reported basis grew by 8.1% to €16.3 billion in H1 (H1 FY25: €15.1 billion) and increased by 5.7% on an organic basis.

- Germany: Returned to growth in Q2 (+0.5%), supported by the end of the TV law change impact and higher wholesale revenue.

- UK: +1.2% organic growth in Q2, strong commercial momentum and fast start on VodafoneThree integration.

- Africa: Maintaining double-digit organic service revenue growth (Q2: 13.5%), supported by above-inflation growth in Egypt and Vodacom's international markets, with strong demand for data and financial services.

- Business: +2.9% organic growth in Q2, with strong demand for digital services.

- Adjusted EBITDAaL: On a reported basis increased by 5.9% to €5.7 billion (H1 FY25: €5.4 billion), and by 6.8% on an organic basis, as service revenue growth in most markets was partially offset by the final impact of the TV law change in Germany and continued commercial investment.

- Operating profit: On a reported basis decreased by 9.2% to €2.2 billion in H1 (H1 FY25: €2.4 billion), with Adjusted EBITDAaL growth offset by higher depreciation and amortisation following the consolidation of Three UK, and lower other income.

- Shareholder returns: €3.0 billion of share buybacks now complete (since May 2024), further €1.0 billion remaining. Next €500 million tranche commences today.

- FY26 guidance1: We now expect to deliver the upper end of our guidance ranges: Adjusted EBITDAaL of €11.3-11.6 billion and Adjusted free cash flow of €2.4-2.6 billion.

- New progressive dividend policy: Reflecting our medium-term outlook for Adjusted free cash flow growth. We expect to grow the FY26 dividend per share by 2.5%.

Operational highlights

- Customers: A fast start to VodafoneThree integration, with immediate improvements to the network. Our new customer service initiative 'Ask Once' has been implemented in three markets, and we have leading NPS positions in 11 markets.

- Simplicity: AI virtual assistant, SuperTobi, live in all European markets reaching 70% end-to-end resolution rate.

- Growth: Strong digital services revenue growth in Business (Q2: 12.2%), Financial services revenue growth in Africa (Q2: 21.8%).

Note:

1FY26 UK merger impact on a 10-month basis of €0.3 billion Adjusted EBITDAaL and -€0.2 billion Adjusted free cash flow.

During the first half of the year, we delivered good operational progress with our strategic priorities, providing further confidence to generate sustainable Adjusted free cash flow growth over the medium term. We have summarised our progress below, in an accompanying presentation and video Q&A available here: investors.vodafone.com/results.

Germany

- Enhancing our gigabit network infrastructure with the continued fiberisation of our cable network, which once again has been recognised as leading in independent network tests results. Our OXG joint venture's fibre buildout is gaining good momentum and the company has opened sales to 1 million households. We have also nearly completed the successful migration of 12 million 1&1 customers onto our mobile network.

- Investing in customer experience and our brand with further improvements in customer service and a stronger NPS, starting to achieve market leadership in specific customer segments. In May 2025, we announced that Vodafone will be the new main sponsor of eight-time German football champions, Borussia Dortmund, for the next five years.

- Driving value and commercial differentiation with several actions taken to support our front book value in broadband, and the launch of differentiated propositions in mobile, targeting upselling. We have expanded our new mobile device financing offer to all sales channels and launched a five-year warranty, providing customers with greater flexibility and support.  In B2B, on 30 October 2025, we announced that we had entered into a binding agreement to acquire 100% of Skaylink enabling our Business and public sector customers to access an enhanced suite of digital services and support.

UK

- Building the strongest connectivity provider with a fast start to our network plans. Three customers have seen improved 4G speeds and we have already upgraded over 5,000 sites enabling Vodafone and Three customers to seamlessly use both networks. By the end of the year we will have removed 16,500km2 of coverage 'not spot' areas.

- Driving cost synergies at pace having signed new long term network partnership agreements and begun both property consolidation and large contract rationalisation programmes, whilst merging and simplifying the two organisations.

- Deepening our market leadership through the cross-selling of our broadband offers to Three customers and Fixed Wireless Access to Vodafone customers, supporting our strong commercial momentum. Three customers are also starting to benefit from Vodafone's market leading customer management processes and a better network experience.

Other Europe and Türkiye

- Strengthening our position in Romania. In October 2025, we completed the acquisition of Telekom Romania Mobile Communications S.A assets for €30 million, increasing our local scale and supporting returns growth.

- Capitalising on our customer experience step-up, we have launched our 'Ask Once' promise in the first two markets setting a new standard in customer service, with four additional markets to follow over the next six months.

- Expanding B2B digital services across our footprint, with 14 product launches in mobility, unified communications and cloud services. We have also been recognised by industry analysts as leaders in 5G mobile private networks, unified communications services and software-defined connectivity solutions.

Africa

- Continuing to scale advanced financial services with 93.7 million financial services customers, including 12.7 million Vodafone Cash customers (Egypt's market-leading mobile wallet). In South Africa, we are supporting financial and digital inclusion through our dual ecosystem, in which we offer leading services to both consumers and merchants, by scaling and diversifying the VodaPay super-app.

Generative AI

- Simplifying customer care at scale through call centre agent assistance, and our GenAI bot, SuperTobi already live in all European markets with a 70% end-to-end resolution rate, and higher customer satisfaction.

- Automating network operations through zero-touch processes, enabling faster, more accurate issue resolution via real-time diagnostics - improving efficiency and boosting customer experience. We have transformed our investment planning for our next generation network infrastructure deployment, by using real-time data to optimise RAN capital allocation and prioritise areas of high consumer impact.

- Supported by a state-of-the-art architecture, with multi-vendor APIs interconnected into our applications, a pan-European data ocean and an integrated team implementing use cases across markets.

Financial results

- Total revenue: Increased by 7.3% to €19.6 billion reflecting strong service revenue growth and the consolidation of Three UK, partially offset by adverse foreign exchange movements.

- Service revenue: Increased by 8.1% to €16.3 billion, and 5.7% on an organic basis. In Q2, German service revenue returned to growth, and we saw continued growth in the UK, Africa and Türkiye. Vodafone Business grew by 2.6% in H1, and by 3.4% on an organic basis, supported by strong demand for digital services.

- Adjusted EBITDAaL: Increased by 5.9% to €5.7 billion (H1 FY25: €5.4 billion), and 6.8% on an organic basis, as service revenue growth in most markets and the consolidation of Three UK was partially offset by the final impact of the TV law change in Germany and continued commercial investments.

- Operating profit: Decreased by 9.2% to €2.2 billion (H1 FY25: €2.4 billion), with Adjusted EBITDAaL growth offset by higher depreciation and amortisation from the consolidation of Three UK, and lower other income.

- Earnings per share: Basic earnings per share from continuing operations was 3.38 eurocents, compared to basic earnings per share of 3.92 eurocents for H1 FY25. The decrease was primarily due to a lower operating profit, and a higher income tax expense, partially offset by a lower weighted average number of shares compared to the comparative period.

Further information is available in a spreadsheet at investors.vodafone.com/results

Notes:

1. The H1 FY26 results reflect average foreign exchange rates of €1: GBP 0.86, €1: INR 99.60, €1: ZAR 20.68, €1: TRY 45.86 and €1: EGP 57.02.

2. Adjusted EBITDAaL and Adjusted basic earnings per share are non-GAAP measures. See page 46 for more information. 

3. Includes depreciation on leased assets of €1,735 million (H1 FY25: €1,564 million).

4. Reversal of interest on lease liabilities included within Adjusted EBITDAaL under the Group's definition of that metric, for re-presentation in financing costs.

Cash flow, funding & dividend

- Cash from operating activities: Decreased by 9.8% to €5.1 billion reflecting cash inflows from discontinued operations in the prior period.

- Adjusted free cash flow: An outflow of €0.6 billion, representing an improvement of €0.4 billion compared to the prior year. This primarily reflects higher Adjusted EBITDAaL and lower capital additions which partially offset higher working capital and tax.

- Net debt: Increased to €25.9 billion compared to €22.4 billion as at 31 March 2025. This was driven by a free cash outflow of €0.8 billion, together with €1.7 billion of additional debt arising from the VodafoneThree merger, equity dividends of €0.6 billion and share buybacks of €1.0 billion. This was offset by other movements of €0.5 billion, principally due to the early repayment of certain bonds.

- Current liquidity: Cash and cash equivalents and short-term investments totalled €10.9 billion (€16.3 billion as at 31 March 2025). This includes €0.2 billion of net collateral which has been posted by Vodafone to counterparties as a result of mark-to-market movements on derivative instruments (€1.3 billion posted to Vodafone by counterparties as at 31 March 2025).

- Shareholder returns: The interim dividend per share is 2.25 eurocents (H1 FY25: 2.25 eurocents). The ex-dividend date for the interim dividend is 20 November 2025 for ordinary shareholders and 21 November 2025 for ADR holders, the record date is 21 November 2025 and the dividend is payable on 5 February 2026. Total capital returned to shareholders so far in FY26 totalled €1.5 billion. 

Notes:

1. The H1 FY25 comparative for Borrowings less cash and cash equivalents excludes an amount of €2,086 million in respect of Vodafone Italy and Vodafone Spain which were reported as discontinued operations.

2. Adjusted free cash flow, Free cash flow and Net debt are non-GAAP measures. See page 46 for more information.

3. In addition to the reported total from continuing operations, there was an outflow of €nil from discontinued operations included in adjusted free cash flow for the six months ended 30 September 2025 (H1 FY25: €99 million outflow).

4. The H1 FY25 comparative for Net debt excludes an amount of €28 million in respect of Vodafone Italy and Vodafone Spain which were reported as discontinued operations.

In May 2025, we set out guidance for FY26 for Adjusted EBITDAaL and Adjusted free cash flow.

Based on our performance in H1 and our outlook for the rest of the year, we now expect to deliver at the 'upper end' of our FY26 guidance ranges.

In line with the ambition to grow the dividend within the capital allocation policy announced in February 2024 and having now completed the merger in the UK, we are committing to a progressive dividend policy, reflecting our medium-term outlook for Adjusted free cash flow growth. For FY26 we expect to grow the full year dividend per share by 2.5%. Going forwards the interim dividend will be set each year at 50% of the prior full year dividend.

Notes:

1. Adjusted EBITDAaL and Adjusted free cash flow are non-GAAP measures. See page 46 for more information.

2. Adjusted free cash flow is Free cash flow before licences and spectrum, restructuring costs arising from discrete restructuring plans, integration capital additions, working capital related items and M&A.

3. Excluding the impact of hyperinflationary accounting in Türkiye.

4. The FY26 guidance reflects the following foreign exchange rates: €1:GBP 0.85: €1:ZAR 20.59; €1:TRY 43.42; €1:EGP 56.74. The guidance assumes no material change to be structure of the Group.

Geographic performance summary

Notes:

1. Organic service revenue growth, Group Adjusted EBITDAaL and Group Adjusted EBITDAaL margin are non-GAAP measures. See page 46 for more information. 

2. Other Europe markets comprise Portugal, Ireland, Greece, Romania, Czech Republic and Albania.

3. Capital additions includes software arrangements managed centrally on behalf of the Group.

Note:

1. Organic growth is a non-GAAP measure. See page 46 for more information.

Growth

Total revenue decreased by 2.1% to €6.0 billion as a result of lower service and equipment revenue. Service revenue declined 1.4% (Q1: -3.2%, Q2: 0.5%) including a -1.5 percentage point impact (Q1: -2.9 percentage point, Q2: nil) from the end of bulk TV contracting in Multi Dwelling Units ('MDUs'). Service revenue returned to growth in Q2 supported by the end of the MDU impact and higher mobile wholesale revenue.

Fixed service revenue decreased by 5.2% (Q1: -8.0%, Q2: -2.3%). The MDU transition had a 2.7 percentage point impact (Q1: -5.3 percentage point, Q2: nil). Excluding this, our performance was primarily impacted by lower TV ARPU.

Mobile service revenue grew by 3.3% (Q1: 2.7%, Q2: 3.8%) driven by higher wholesale revenue as we continued to migrate 1&1 customers onto our network, partially offset by ARPU pressure from higher competitive intensity in the mobile market. By the end of Q2, we had successfully migrated 10.5 million 1&1 customers and expect revenues to reach full run-rate in Q4 FY26.

Vodafone Business service revenue declined by 1.2% (Q1: -0.9%, Q2: -1.6%), as pressure in core connectivity services was partially offset by strong digital services demand.

Adjusted EBITDAaL declined by 4.3%, of which a -2.4 percentage point impact related to the MDU transition. Excluding this impact, the decline in Adjusted EBITDAaL was largely driven by the continued impact of higher commercial investment in the prior year. The Adjusted EBITDAaL margin was 0.9 percentage points lower year-on-year at 36.5%.

Customers

Our broadband customer base declined by 49,000 in H1 (Q1: -23,000, Q2: -26,000). During H1, our focus remained on driving value through front-book ARPU improvements and lower promotional activity. We continue to be the largest provider of fixed line gigabit connectivity in Germany, as we market gigabit speeds to almost 75% of homes, with 5 million fibre households passed beyond our own cable footprint of 25 million households. Our OXG joint venture's fibre buildout is gaining good momentum with 350,000 households now passed. Our TV customer base increased by 90,000 (Q1: 28,000, Q2: 62,000) reflecting our strategy to bundle basic TV services with broadband. This was partially offset by the ongoing decline in demand for standalone linear TV services.

Our mobile contract customer base declined by 37,000 (Q1, -36,000, Q2: -1,000) in H1, due to low ARPU Business disconnections and the continued reduction of customers through resellers' channels, in the context of a highly competitive mobile market. Contract churn is lower year-on-year, supported by ongoing investments in customer experience. We also connected a further 4.7 million IoT devices.

Operational actions

We continue to invest in our network, customer experience, brand and in Business digital services. Our Net Promoter Score on our cable network continued to improve and is now at its highest-ever level, and we have once again been recognised as a leader in independent network tests results. In May 2025, we announced that Vodafone will be the new main sponsor of eight-time German football champions, Borussia Dortmund, for the next five years. In August 2025, we expanded our new mobile device financing offer to all sales channels and launched a five-year warranty, providing customers with greater flexibility and support. In fixed broadband, we have taken several actions to support our front-book value. On 30 October 2025, we announced that we had entered into a binding agreement to acquire 100% of Skaylink enabling our Business and public sector customers to access an enhanced suite of digital services and support.

Note:

1. Organic growth is a non-GAAP measure. See page 46 for more information.

Growth

Total revenue increased by 27.9% to €4.4 billion due to the consolidation of Three UK's financial results following the completion of the merger on 31 May 2025. Service revenue increased by 26.7%, with organic growth in service revenue of 1.1% (Q1: 0.9%, Q2: 1.2%) as growth in Consumer broadband and Wholesale was partially offset by a decline in Business.

Mobile service revenue grew by 35.8% (Q1: 19.6%, Q2: 51.6%). Organic growth in mobile service revenue was 0.4% (Q1: 0.4%, Q2: 0.4%), as growth in Wholesale was largely offset by a decline in the Three UK Consumer contract base and ARPU pressure in Business.

Fixed service revenue grew by 2.4% (Q1: 3.1%, Q2: 1.8%) and organic growth in fixed service revenue was 3.5% (Q1: 2.7%, Q2: 4.3%) with continued strong growth in Consumer broadband, partially offset by a decline in Business.

Vodafone Business service revenue increased by 0.4% (Q1: -0.8% Q2: 1.5%). On an organic basis, Vodafone Business service revenue decreased by 2.3% (Q1: -3.0%, Q2: -1.7%) due to planned managed services contract terminations and continued mobile ARPU pressure. This was partially offset by good demand for digital services and growth in Three's B2B customer base.

Adjusted EBITDAaL increased by 25.0%, and on an organic basis, Adjusted EBITDAaL increased by 5.4%, which was largely driven by service revenue growth, increasing margins in broadband, and the phasing of marketing spend. The Adjusted EBITDAaL margin decreased by 0.5 percentage points year-on-year to 20.0%, and on an organic basis grew by 1.2 percentage points year-on-year.

Customers

During H1, we continued to build upon our market leading customer experience and launched our industry leading "Just Ask Once" proposition for Vodafone customers.

In mobile, our contract customer base decreased by 32,000 in H1 driven by Three UK contract customer losses, partly offset by good growth in our Fixed Wireless Access ('FWA') offer. In prepaid, our VOXI and SMARTY brands continued to grow well with 104,000 customers added in H1.

In fixed, our customer base increased by 94,000 over the period. We can now serve 21.8 million households with gigabit speeds, having further expanded our footprint through our wholesale strategic agreement with Community Fibre in London.

VodafoneThree Integration

On 31 May 2025, we completed the merger of Vodafone UK and Three UK. Full details of the transaction can be found here: Completion of Vodafone and Three merger in the UK.

VodafoneThree is now the biggest mobile network operator in the UK with 28.8 million customers, with a multi-brand mobile strategy in Consumer through the Vodafone, Three, VOXI, SMARTY and Talkmobile brands. We have made a fast start integrating the two businesses and delivering the best-in-class network and experience we promised our customers.

We have made immediate improvements to our network. Within just two weeks, through sharing of combined spectrum, 7 million Three and SMARTY customers have benefitted from improved 4G speeds of up to 40%. Within a few months, 28.8 million Vodafone and Three customers have started to benefit from seamlessly using both networks with over 5,000 radio sites already upgraded. By the end of the year, we will have removed a total of 16,500 km2 of 'not spot' areas.

Notes:

1. Other Europe markets comprise Portugal, Ireland, Greece, Romania, Czech Republic and Albania.

2. Organic growth is a non-GAAP measure. See page 46 for more information.

Growth

Total revenue was stable year-on-year at €2.8 billion. Service revenue grew by 0.2% (Q1: 0.3%, Q2: 0.1%) and organic service revenue declined 0.1% (Q1: 0.2%, Q2: -0.5%) due to continued ARPU pressure in Portugal as well as Business project phasing.

In Portugal, as anticipated following the launch of a fourth player, service revenue was impacted by lower mobile ARPU, more than offsetting fixed growth. Despite increased competitive intensity in the market, our mobile contract customer base continues to grow. In Ireland, service revenue growth was supported by Business growth and a higher broadband customer base. In Greece, service revenue was broadly stable as growth in mobile was largely offset by the phasing of Business project revenue. In Romania service revenue decline was due to competitive pressure and Business revenue phasing.

Vodafone Business service revenue increased by 0.3% (Q1: 1.6%, Q2: -1.0%), with flat organic growth (Q1: 1.5%, Q2: -1.4%), driven by good growth across most markets offset by public sector revenue phasing in Greece and Romania.

Adjusted EBITDAaL increased by 6.5% and on an organic basis, Adjusted EBITDAaL increased by 6.1%, supported by a legal one-off in Portugal. The Adjusted EBITDAaL margin increased by 1.8 percentage points year-on-year to 29.8%.

Customers

During H1, we added 103,000 mobile contract customers across our six markets, mainly driven by Portugal, Greece, and the Czech Republic, and our broadband base remained broadly stable. In Portugal, we added 77,000 contract customers in mobile and 5,000 in fixed broadband. In Greece, the mobile contract base grew by 54,000, though fixed broadband customers declined by 9,000. In Ireland, our mobile contract customer base declined by 6,000 and the broadband customer base increased by 9,000. Through our fixed wholesale network access partnerships, including our fibre joint venture, SIRO, we now cover over 2.2 million households in Ireland with FTTH.

Portfolio

On 1 October 2025, we completed the acquisition of Telekom Romania Mobile Communications S.A ('TKRM') for €30 million. This transaction strengthens our position in the market, increasing both our local scale and unlocking significant synergy benefits. We have acquired TKRM and its post-paid customer base, while Digi Romania S.A. has acquired TKRM's pre-paid customer business. Both companies have also gained additional spectrum and towers as part of the transaction.

Note:

1. Organic growth is a non-GAAP measure. See page 46 for more information.

Hyperinflationary accounting in Türkiye

Türkiye was designated as a hyperinflationary economy on 1 April 2022 in line with IAS 29 'Financial Reporting in Hyperinflationary Economies'. See note 1 'Basis of preparation' in the unaudited condensed consolidated financial statements for further information.

Organic growth metrics exclude the impact of the hyperinflation adjustment and foreign exchange translation in Türkiye. See page 47 for more information.

Growth

Total revenue increased by 15.1% to €1.6 billion, with service revenue growth partly offset by depreciation of the local currency versus the euro.

Service revenue increased by 55.6% (Q1: 63.8%, Q2: 48.4%) on an organic basis. In euro terms, service revenue growth was 20.3% (Q1: 22.1%, Q2: 18.7%) as reported under IAS 29. Excluding the impact of hyperinflationary accounting adjustments, service revenue increased by 21.6% in euro terms (Q1: 29.6%, Q2: 14.8%). Growth in Türkiye was primarily driven by ongoing price actions, value accretive base management, increased data usage and strong growth in Business.

Vodafone Business service revenue increased by 66.0% (Q1: 72.7%, Q2: 59.8%:) on an organic basis, supported by growth in mobile connectivity, increased data centre usage and demand for digital services.

Adjusted EBITDAaL increased by 58.0% on an organic basis, supported by service revenue growth and ongoing digitalisation. Adjusted EBITDAaL continued to grow in euro terms and increased by 23.1% during the period. The Adjusted EBITDAaL margin increased by 2 percentage points year-on-year to 30.3%.

Customers

We added 511,000 mobile contract customers during H1, including migrations of prepaid customers. Through our ongoing customer experience initiatives, we have seen a 34% reduction in our share of deep detractors to its lowest ever level.

5G spectrum

On 16 October 2025, Vodafone Türkiye successfully acquired a total of 100 MHz of spectrum in the country's 5G auction, for a total cost of US$627 million (€539 million). Payments will be phased equally over three financial years. Vodafone Türkiye will launch 5G services during 2026. We also renewed all of our existing spectrum holdings, which were due to expire in 2029, until 2042.

Note:

1. Organic growth is a non-GAAP measure. See page 46 for more information.

Growth

Total revenue increased by 6.6% to €4.0 billion as service revenue was partly offset by the depreciation of local currencies versus the euro. Service revenue increased by 7.9% (Q1: 7.3%, Q2: 8.4%) and organic growth in service revenue was up by 13.7% (Q1: 13.8%, Q2: 13.5%), with growth in South Africa, Egypt and all of Vodacom's international markets.

In South Africa, organic service revenue increased by 2.2% (Q1: 2.9%, Q2: 1.4%) due to growth in the mobile contract segment, supported by price increases, good demand for fixed connectivity and improved performance in Wholesale. This was partially offset by a decline in prepaid, reflecting increased price competition. Financial services revenue continued to perform well with organic growth of 6.3%, supported by demand for insurance products.

Service revenue in Egypt grew by 42.5% (Q1: 43.9%, Q2: 41.2%) on an organic basis, well above inflation driven by sustained customer base growth, good data demand and price actions in prior quarters. Our financial services product, 'Vodafone Cash' continued to grow with revenue increasing by 36.7% and now represents 7.9% of Egypt's service revenue.

In Vodacom's international markets, service revenue grew by 13.7% (Q1: 12.6%, Q2: 14.7%) on an organic basis supported by strong demand for data, an acceleration in M-Pesa revenue and a strong performance in the DRC and Tanzania. Mozambique also returned to growth in Q2. M-Pesa revenue grew by 21.7% in H1 on an organic basis and represents 29.1% of service revenue.

Vodacom Business service revenue grew by 5.7% (Q1: 5.7%, Q2: 5.8%) with organic growth of 11.0% (Q1: 11.2%, Q2: 10.8%), driven by growth in connectivity and strong demand for digital services.

Adjusted EBITDAaL increased by 11.0% as the depreciation of local currencies versus the euro was more than offset by organic growth. On an organic basis, Adjusted EBITDAaL increased by 17.0% due to service revenue growth, ongoing cost initiatives, and the lapping of prior year one-off impacts in the DRC, which were partially offset by a one-off cost in South Africa. The Adjusted EBITDAaL margin increased by 1.3 percentage points year-on-year (1.4 percentage points on an organic basis) to 34.1%.

Customers

In South Africa, we lost 18,000 mobile contract customers in H1 and now have a mobile contract customer base of 6.9 million. Customer NPS continued to improve and is now market-leading. 'VodaPay' grew to 14.1 million registered users, with 3.3 million users added during H1 driven by our insurance, payments and lending marketplace businesses.

In Egypt, we added 197,000 mobile contract customers and 1.5 million prepaid mobile customers, supported by our market-leading NPS and we now have a total of 53.1 million mobile customers. In June 2025, we announced the launch of our 5G commercial services. 'Vodafone Cash' grew to 12.7 million active users, with 1.2 million users added during H1.

In Vodacom's international markets, we added 3.7 million mobile customers in H1, and our mobile customer base is now 63.7 million, with 66.2% of active customers using our data services. Our M-Pesa customer base now totals 27.1 million active users with 1.9 million users added during the period.

Portfolio

On 14 August 2025, South Africa's Competition Appeal Court approved Vodacom's proposed fibre joint venture with Maziv (Proprietary) Limited, with conditions. Vodacom intends to acquire a 30% stake in Maziv, the parent company of Vumatel and Dark Fibre Africa. The transaction is subject to unconditional approval from the telecommunications regulator, ICASA.

Note:

1. The Group's investment in Vodafone Idea Limited ('VIL') was reduced to €nil in the year ended 31 March 2020 and the Group has not recorded any profit or loss in respect of its share of VIL's results since that date.

Vantage Towers Joint Venture - 44.7% ownership

During H1, total revenue increased by 4.9% to €644 million, supported by 1,027 net new tenancies and 367 new macro sites. As a result, the tenancy ratio increased to 1.54x (31 March 2025: 1.53x). During the period, Vantage Towers distributed €156 million in dividends to Vodafone.

VodafoneZiggo Joint Venture (Netherlands) - 50.0% ownership

In May 2025, VodafoneZiggo announced a new strategic plan to regain commercial momentum, implement a leaner and more agile operating model and accelerate the upgrade of their network to DOCSIS 4.0. During H1, VodafoneZiggo's mobile contract base grew by 9,000 and broadband net additions performance improved throughout the period (Q1: -27,000, Q2: -19,000). In October 2025, the company announced the launch of a new 2 Gbps top speed offer as part of their network upgrade plans. VodafoneZiggo also entered into a strategic partnership with Delta Fiber, expanding its coverage area to over 600,000 additional addresses where the company does not have its own network.

Total revenue decreased 3.1% to €2.0 billion in H1, with declines in both service and non-service revenue. The decline in service revenue was primarily driven by a lower broadband customer base and mobile ARPU in Business. Vodafone's share of net loss in H1 FY26 was €60 million, driven by lower operating income partially offset by higher gains on derivative financial instruments and tax. During the period, Vodafone received €26 million in interest payments.

Safaricom Associate (Kenya) - 27.8% ownership

Safaricom service revenue grew by 4.8% to €1.3 billion, with organic growth of 10.2%. Vodafone's higher share of results was due to a strong result in Kenya and lapping a prior year devaluation in Ethiopia. During H1 FY26, Vodafone received €69 million in dividends from Safaricom.

TPG Telecom Limited Joint Venture (Australia) - 25.1% ownership

TPG Telecom Limited ('TPG') is a fully integrated telecommunications operator in Australia and is listed on the Australian stock exchange. The Group owns an equivalent economic interest of 25.1%, via an 11% direct stake in TPG and a 14% indirect stake, held through a 50:50 joint venture with CK Hutchison. During H1 FY26, the Group received €10 million in dividends from its direct stake in TPG. The Group provides guarantees amounting to US$1.0 billion and €0.6 billion (2024: US$1.0 billion and €0.6 billion) in relation to its 50% share in a multicurrency loan facility held by the joint venture. On 5 August 2025, following the Vocus sale with net proceeds of AU$4.7 billion, TPG Telecom announced a capital management plan including an AU$3 billion capital reduction for shareholders. A Reinvestment Plan will give the opportunity to minority shareholders to reinvest proceeds into new shares at a discount, raising up to AU$688 million. TPG has also repaid AU$1.7 billion in debt, with additional repayments planned from the Reinvestment Proceeds. 

Vodafone Idea Limited Joint Venture (India) - 16.1% ownership

On 30 March 2025, Vodafone Idea announced that the government had agreed to convert US$4.3 billion of its outstanding spectrum dues to equity. The Group's shareholding in Vodafone Idea Limited was subsequently diluted to 16.1% in April 2025.

Note:

1. Adjusted net financing costs is a non-GAAP measure. See page 46 for more information.

Net financing costs of €49 million (H1 FY25: €277 million) includes a gain of €782 million (HY FY25: €238 million) on certain bonds bought back prior to their maturity dates, and a revaluation gain on Other investments classified at fair value through profit and loss of €242 million in H1 FY25.

Adjusted net financing income of €27 million (H1 FY25: net financing costs of €560 million), excluding the gains from the early redemption of the bonds bought back in each of the respective periods, reflects a decrease in net financing costs due to a lower net debt position compared to the prior period.

Note:

1. Adjusted effective tax rate is a non-GAAP measure. See page 46 for more information.

The Group's Effective tax rate ('ETR') for H1 FY26 was 50.2%.

The increase in the Group's ETR reflects the one-off €269 million tax charge arising on the write-down of deferred tax balances in Germany as a result of the enacted gradual 5% corporate income tax rate reduction between 2027 and 2032 and a net €42 million tax charge as an effect of hyperinflation accounting adjustments in Türkiye (H1 FY25: €41 million charge).

The Group's Adjusted ETR ('AETR') for H1 FY26 was 27.4% (H1 FY25: 18.0%). This excludes the impact of the German tax rate change, hyperinflation accounting adjustments in Türkiye and the €172 million (H1 FY25: €319 million) deferred tax charge for utilisation of recognised tax losses in Luxembourg. The Group's H1 FY26 AETR is approximately 9% higher than H1 FY25. The H1 FY25 AETR was reduced by higher loss utilisation from lending to Vodafone Spain and Vodafone Italy, while the related local benefit was excluded in discontinued operations.

The ETR for H1 FY25 reflected a €714 million accounting gain on the sale of an 18% stake in Indus Towers Limited without tax gain, the recognition of a financial liability at fair value of €238 million on the secondary pledge to Indus Towers without a tax credit, €319 million relating to the use of losses in Luxembourg, a €164 million tax charge arising on the €26 million net gain on the disposal of a 10% stake in Oak Holdings GmbH, and a net €41 million tax charge as an effect of hyperinflation accounting adjustments in Türkiye. Those items, when excluded, resulted in an AETR for H1 FY25 of 18.0%.

Note:

1. Adjusted basic earnings per share is a non-GAAP measure. See page 46 for more information.

Basic earnings per share from continuing operations was 3.38 eurocents, compared to basic earnings per share of 3.92 eurocents for H1 FY25. The decrease was primarily due to a lower operating profit, and a higher income tax expense, partially offset by a lower weighted average number of shares compared to the comparative period.

Adjusted basic earnings per share was 6.92 eurocents, compared to 4.84 eurocents for H1 FY25. The increase was primarily due to higher adjusted EBITDAaL and lower adjusted net financing costs arising from a gain of €782 million (HY FY25: €238 million) on certain bonds bought back prior to their maturity dates, which outweighed a higher adjusted tax rate.

Cash inflow from operating activities decreased to €5,092 million, reflecting cash inflows from discontinued operations in the comparative period.

Outflow from investing activities decreased by €4,341 million to €1,874 million, primarily due to proceeds from the disposals of 10% of Oak Holdings 1 GmBH (€1,336 million), 18% of Indus Towers Limited (€1,684 million) and Vodafone Spain (€3,669 million) in the comparative period, which outweighed lower cash outflows from discontinued operations and a higher net inflow in respect of short-term investments. Short-term investments include highly liquid government and government-backed securities and managed investment funds that are in highly rated and liquid money market investments with liquidity of up to 90 days.

Outflows from financing activities decreased to €6,918 million resulting from gains on certain bonds bought back prior to their maturity date, lower cash inflows from discontinued operations and lower dividends paid, which outweighed higher net cash outflows in respect of repayment of borrowings.

Notes:

1. Adjusted EBITDAaL, Free cash flow, Adjusted free cash flow and Net debt are non-GAAP measures. See page 46 for more information.

2. See page 58 for an analysis of tangible and intangible additions in the year. 

3. Includes the impact of €138 million of Trade payables for which the Group has extended payment terms from 30 to 90 days through the use of reverse factoring at 30 September 2025 (31 March 2025: €148 million).

4. Includes working capital in respect of integration capital additions. 

5. Interest received and paid excludes €291 million outflow (H1 FY25: €208 million outflow) in relation to the cash portion of interest on lease liabilities included within Adjusted EBITDAaL.

6. Other movements in net debt includes €782 million in relation to gains on certain bonds bought back prior to their maturity date. Other movements in net debt for H1 FY25 includes a net outflow from discontinued operations of €224 million, together with the partial repayment of borrowings secured against Indian assets of €1,699 million.

Acquisitions and disposals includes net debt acquired on the merger of Vodafone and Three into VodafoneThree Holdings Limited ('VTHL') in the UK of €2,042 million, offset by €348 million of equity funding injected into VTHL by Hutchison.

Adjusted free cash flow was an outflow of €583 million in the period, representing an improvement of €367 million compared to the comparative period. This primarily reflects higher adjusted EBITDAaL and lower capital additions which outweighed higher working capital and taxation outflows.

Borrowings include bonds of €34,059 million (31 March 2025: €36,402 million), lease liabilities of €12,335 million (31 March 2025: €10,826 million), cash collateral liabilities of €1,315 million (31 March 2025: €2,357 million) and loans and other borrowings of €3,746 million (31 March 2025: €3,558 million).

The decrease in borrowings of €1,688 million was primarily driven by a reduction in bonds (€2,343 million) as a result of the early repayment of certain bonds and favourable foreign exchange movements, together with a reduction in collateral liabilities (€1,042 million), which outweighed an increase in lease liabilities (€1,509 million) arising primarily from the VodafoneThree merger in the UK.

Notes:

1. Gross debt and Net debt are non-GAAP measures. See page 46 for more information.

2. Short-term investments includes €579 million (31 March 2025: €2,139 million) of highly liquid government and government-backed securities and managed investment funds of €3,194 million (31 March 2025: €3,141 million) that are in highly rated and liquid money market investments with liquidity of up to 90 days.

3. Derivative and other financial instruments exclude derivative movements in cash flow hedging reserves of €632 million gain (31 March 2025: €575 million gain).

4. Collateral arrangements on derivative financial instruments result in cash being held as security. This is repayable when derivatives are settled and is therefore deducted from liquidity.

Net debt increased by €3,542 million to €25,939 million. This was driven by a free cash outflow of €771 million, together with outflows in relation to acquisitions and disposals mostly related to the merger with Three UK (€1,722 million), equity dividends (€558 million) and share buybacks (€973 million), offset by other movements (€482 million), which was principally due to the early repayment of certain bonds.

Other funding considerations include:

The Group's gross and net debt includes certain bonds which have been designated in hedge relationships, which are carried at €806 million higher value (€899 million higher as at 31 March 2025) than their euro equivalent redemption value. In addition, where bonds are issued in currencies other than the euro, the Group has entered into foreign currency swaps to fix the euro cash outflows on redemption. The impact of these swaps is not reflected in gross debt and if it were included, the euro equivalent value of the bonds would increase by €460 million (€1,132 million decrease as at 31 March 2025).

Return on capital employed

Return on capital employed ('ROCE') reflects how efficiently we are generating profit with the capital we deploy. We calculate two ROCE measures: i) Pre-tax ROCE for controlled operations only and ii) Post-tax ROCE including associates and joint ventures.

ROCE calculated using GAAP measures for the 12 months ended 30 September 2025 was -0.6% (H1 FY25: 3.9%), impacted by lower operating profit.

The table below presents adjusted ROCE metrics.

Note:

1. The half-year ROCE calculation is based on returns for the 12 months ended 30 September. ROCE is calculated by dividing Operating profit by the average of capital employed as reported in the consolidated statement of financial position. Pre-tax ROCE (controlled) and Post-tax ROCE (controlled and associates/joint ventures) are non-GAAP measures. See page 46 for more information. 

Funding facilities

As at 30 September 2025, the Group had undrawn revolving credit facilities of €7.5 billion comprising euro and US dollar revolving credit facilities of €4.1 billion and US$4.0 billion (€3.4 billion) which mature in 2030 and 2028 respectively. Both committed revolving credit facilities support US and euro commercial paper programmes of up to US$15 billion (€12.8 billion) and €10 billion respectively.

Post employment benefits

As at 30 September 2025, the Group's net surplus of scheme assets over scheme liabilities was €65 million (€55 million net surplus as at 31 March 2025). 

Dividends

Dividends will continue to be declared in euros, aligning the Group's shareholder returns with the primary currency in which we generate free cash flow, and paid in euros, pounds sterling and US dollars. The foreign exchange rate at which future dividends declared in euros will be converted into pounds sterling and US dollars will be calculated based on the average World Markets Company benchmark rates over the five business days concluding one week prior to the payment of the dividend.

The Board has announced an interim dividend per share of 2.25 eurocents (H1 FY25: 2.25 eurocents).

The ex-dividend date for the interim dividend is 20 November 2025 for ordinary shareholders and 21 November 2025 for ADR holders, the record date is 21 November 2025 and the dividend is payable on 5 February 2026. 

Shareholders may elect to receive their dividend in either eurocents or GBP and the last day for election will be 15 January 2026. Alternatively, shareholders may participate in the dividend reinvestment plan and elections must be made by 15 January 2026. More information can be found at vodafone.com/dividends

Board changes

On 19 June 2025, the Group announced the appointment of Pilar López as Chief Financial Officer Designate, effective 1 October 2025. Pilar will succeed Luka Mucic who, as previously announced, has decided to leave Vodafone. Pilar's appointment as Chief Financial Officer and Executive Director to the Board of Vodafone will commence on 1 December 2025, following Luka's departure on 30 November 2025. 

The following Board changes took effect after the conclusion of the 2025 Annual General Meeting in July:

- David Nish retired as a Board member, Senior Independent Director and Chair of the Audit and Risk Committee.

- Simon Segars was appointed Senior Independent Director and also joined the Nominations and Governance Committee.

- Simon Dingemans was appointed Chair of the Audit and Risk Committee and member of the Remuneration Committee.

- Anne-Françoise Nesmes was appointed as a Non-Executive Director and joined the Audit and Risk Committee and ESG Committee.

- Michel Demaré ceased to be a member of the Nominations and Governance Committee. 

- Christine Ramon ceased to be a member of the ESG Committee and joined the Remuneration Committee.

- Delphine Ernotte Cunci ceased to be a member of the Remuneration Committee and joined the Nominations and Governance Committee. 

Executive Committee changes

Guillaume Boutin was appointed CEO Vodafone Investments & Strategy and a member of the Executive Committee in May 2025. Guillaume succeeded Serpil Timuray who left Vodafone at the end of June 2025.

Leanne Wood will step-down as Chief Human Resources Officer and a member of the Executive Committee on 1 January 2026.

Ruth McGill will be appointed Chief Human Resources Officer Designate on 1 November 2025, formally becoming Chief HR Officer and a member of the Executive Committee on 1 January 2026.

Portfolio update

VodafoneThree

On 31 May 2025, the Group successfully completed the merger of Vodafone UK and Three UK. The combined business, named VodafoneThree, is 51% owned by Vodafone and 49% owned by CK Hutchison.

See note 9 'Acquisitions and disposals' in the unaudited condensed consolidated financial statements for more information.

Acquisition of Telekom Romania

On 1 October 2025, Vodafone Romania S.A. ('Vodafone') and Digi Romania S.A. ('Digi') announced that they had completed the acquisition of OTE's subsidiary, Telekom Romania Mobile Communications S.A. ('TKRM').

Vodafone acquired TKRM and its post-paid customer base while Digi acquired its pre-paid customer business. Both companies will also gain additional spectrum and towers as part of the transaction.

Acquisition of Skaylink

On 30 October 2025, the Group announced that it had entered into a binding agreement to acquire 100% of Skaylink GmbH ('Skaylink') for a total consideration of €175 million. Skaylink is a full-service cloud, digital transformation and security specialist with offices throughout Germany and across Europe. 

Completion of the transaction is expected by the end of March 2026, subject to the receipt of necessary regulatory approvals.

Principal risks

The key factors and uncertainties that could have a significant effect on the Group's financial performance, include the following:

Adverse changes in macroeconomic conditions 

Adverse changes in macroeconomic conditions could result in reduced customer spending, higher interest rates, adverse inflation, or foreign exchange rates. Adverse conditions could also lead to limited debt refinancing options and/or increases in costs

Adverse market competition

Increasing competition could lead to price wars, reduced margins, loss of market share and/or damage to market value.

Adverse regulatory and policy environment

Adverse regulatory measures and policies impacting our strategy could result in increased costs, create a competitive disadvantage, or have a negative impact on our Return on Capital Employed.

Company transformation

Failure to effectively transform Vodafone to adapt to future challenges and demands could increase operational complexity and hinder growth.

Cyber threat

An external attack, insider threat, or supplier breach could cause service interruption or confidential data breaches.

Data management and privacy

Data breaches, misuse of data, data manipulation, inappropriate data sharing, poor data quality or data unavailability could lead to fines, reputational damage, loss of value, loss of business opportunity, and failure to meet our customer expectations.

Disintermediation

Failure to effectively respond to threats from emerging technology or disruptive business models could lead to a loss of customer relevance, market share and new/existing revenue streams.

IT resilience and transformation

Failure or disruptions of IT systems and infrastructure or the inability to modernise and manage the IT environment could negatively impact operations, services, customer experience, or financial performance.

Network resilience and infrastructure competitiveness

Major network outages or ineffective execution of the technology strategy could lead to dissatisfied customers and/or impact revenue.

Supply chain disruption

Disruption in our supply chain could mean that we are unable to execute our strategic plans, resulting in increased cost, reduced choice, and lower network quality. 

Watchlist risks

Our watchlist risk process enables us to monitor material risks to Vodafone Group that fall outside our principal risks. We review the watchlist risks as part of the continuous risk management process. Any watchlist risks that increase in their significance to the Group are elevated to principal risks and are treated accordingly. Group watchlist risks include, but are not limited to:

Environmental, Social and Governance ('ESG')

Failure to meet stakeholder expectations on ESG performance and/or reporting may result in reputational damage, customer dissatisfaction, and/or increased cost of capital.  

Governance and performance of investments

Inadequate oversight, poor decision-making, and misalignment with strategic objectives, could lead to suboptimal investment outcomes. This risk encompasses the possibility of financial losses, reputational damage, and failure to achieve desired returns on investments.

Legal compliance

Increased number of legal penalties, fines, and damage to the Company's reputation. Additionally, this includes the risk of losing business and customer trust due to breaches of legal requirements.

Tax

Tax risk covers our management of tax across the markets in which we operate and how we respond to changes in tax law, which may have an impact on the Group.

Watchlist risks are reported to the Risk and Compliance Committee and to the Audit and Risk Committee alongside principal risks.

Emerging risks

Emerging risks are characterised by their uncertain nature, constant change, and by their potential to materially affect the achievement of organisational objectives.

We identify new emerging risk trends using inputs from the analysis of the external and internal environments, leveraging both the input from third-party publications and research as well as the knowledge and experience of our internal business experts. Additionally, we consider the time horizon for the identified emerging risks, allowing us to provide the appropriate level of focus and to plan mitigation strategies accordingly.

As the evolution of emerging risks could be nonlinear and the speed of impact is difficult to predict, we have established a continuous process for monitoring emerging risks as an integral part of the Group's enterprise risk management framework. This allows us to be at the forefront of managing emerging risks, periodically assessing whether any of these risks have become material enough to be elevated to the principal risk category.

We split our emerging risks into five different categories: technological, political/regulatory, economic, societal, and business environment, so that the relevant experts across the business have visibility of these risks and can assess the potential impacts and time horizon of these risks. Additionally, deep-dives and scenario analyses have been performed for selected emerging risks with the view to identify potential mitigation strategies should these risks materialise.

Emerging risks are reported to the Risk and Compliance Committee and to the Audit and Risk Committee for further scrutiny.

We confirm that to the best of our knowledge:

- The unaudited condensed consolidated financial statements have been prepared in accordance with IAS 34, 'Interim Financial Reporting', as issued by the International Accounting Standards Board and as contained in UK-adopted international accounting standards; and

- The interim management report includes a fair review of the information required by Disclosure Guidance and Transparency Rules sourcebook 4.2.7 and Disclosure Guidance and Transparency Rules sourcebook 4.2.8.

Neither the Company nor the directors accept any liability to any person in relation to the half-year financial report except to the extent that such liability could arise under English law. Accordingly, any liability to a person who has demonstrated reliance on any untrue or misleading statement or omission shall be determined in accordance with section 90A and schedule 10A of the Financial Services and Markets Act 2000.

The names and functions of the Vodafone Group Plc Board of Directors can be found at:

www.vodafone.com/board

By Order of the Board

Maaike de Bie

Group General Counsel and Company Secretary

11 November 2025

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.

Note:

1. Principally includes the impact of the Group's cash flow hedges recognised in other comprehensive income during the period.

The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.