VOD · Vodafone Group Public Limited Company

Vodafone Group's FY26 preliminary results reflect a transformed, simpler business with strong top-line momentum, achieving the upper end of financial guidance for Adjusted EBITDAaL at €11.6 billion (guidance basis) and Adjusted free cash flow at €2.6 billion. Total revenue grew 8.0% to €40.5 billion, propelled by 8.8% service revenue increase to €33.5 billion (5.4% organic), with contributions from Africa (12.9% organic), Business (3.2% organic), Other Europe and Türkiye, and a near-flat UK, offset by a 0.2% organic decline in Germany that improved to 1.3% in Q4 amid competitive pressures and regulatory impacts. Adjusted EBITDAaL expanded 4.5% organically to €11.4 billion, supported by revenue gains despite commercial investments, while operating profit swung to a €2.8 billion profit from a €0.4 billion loss, aided by prior-year impairment reversals and EBITDA growth, though tempered by higher depreciation from Three UK consolidation. Margherita Della Valle highlighted a stronger growth outlook post-transformation, with customer experience prioritized and mid-term ambitions for double-digit Adjusted free cash flow growth. Shareholder returns included completing a €2 billion buyback on May 11, 2026, and a 2.5% dividend hike to 4.6125 eurocents per share, aligning with a progressive policy. Strategically, Vodafone is advancing VodafoneThree integration ahead of plan, targeting £700 million annual synergies by FY30, and announced a €4.9 billion buyout for full ownership. Portfolio moves like Romania acquisition and Africa expansions bolster diversification across Europe, Africa, Business, and Investments divisions.