Vodafone profits hit €9bn
July 26, 2024
Vodafone Group’s profits increased by 2.8 per cent in Q1 to June 30th, rising to €9 billion. Operating profit increased by 42.9 per cent to €1.5 billion, primarily driven by a €0.7 billion gain on the disposal of an 18 per cent stake in Indus Towers, leaving Vodafone with a 3.1 per cent shareholding
Total revenue in Africa increased by 3.2 per cent to €1.8 billion due to higher service and equipment revenue. Total revenue increased by 45.6 per cent to €0.7 billion, with service revenue growth somewhat offset by devaluation of the local currency.
Revenue in Germany, the telco’s biggest market fell by 1.7 per cent in the quarter to €3.09 billion compared to the same quarter last year. Vodafone attributed to the change in the law that means those living in multi-tenanted dwellings are no longer obliged to accept the landlord’s chosen TV service provider but each unit can choose its own supplier.
The UK, Vodafone’s second biggest country market, saw revenues rise by 0.3 per cent to €1.68 billion.
In the rest of Europe, total revenue increased by 3.8 per cent to €1.38 billion, due to higher service and equipment revenue.
“Our performance in the first quarter is consistent with our full year guidance, which we reiterate today. We continue to deliver strong revenue growth in Africa and Turkey, whilst lower inflation is slowing revenue growth in Europe and accelerating Group EBITDAaL growth. Service revenue for the Group grew 5.4 per cent, although in Germany we saw an expected service revenue decline, following the ongoing impact of the TV law change. During the last few months, we have announced the final step in reducing our stake in Vantage Towers to 50 per cent for €1.3 billion and commenced our €2 billion share buyback programme following the sale of Spain. We continue to progress our transactions in Italy and the UK as well as the broader transformation of Vodafone, focused on customer experience, Business growth and operational execution in Germany. The actions we are taking now will deliver improved performance and underpin the turnaround of Vodafone,” commented Margherita Della Valle Group Chief Executive.
More to follow…