14 May 2024
If you are covering Vodafone's latest results, please see the following comment from Matthew Dorset, equity research analyst at Quilter Cheviot:
"Vodafone has delivered a decent set of fourth quarter results, with it providing guidance for financial year 2025 ahead of consensus. For the full year, revenues were up 6.3% year on year, with growth in all geographies. Crucially for Vodafone, Germany, its most significant market, returned to slight revenue growth which indicates some positive trends feeding through.
"Vodafone is not out of the woods in Germany yet, however. While revenue turned positive, broadband net adds were negative at -62k in Q4 which was worse than expected, meanwhile, regulatory changes to German cable TV had a further negative impact on service revenues. Pricing has had to do a lot of the heavy lifting for Vodafone in Germany, but it remains to be seen how sustainable this can be.
"Other regions were stronger, including 5% service revenue growth in the UK, supported by price increases. Africa also remained resilient, with 2.6% revenue growth in South Africa.
"This marks the end of what has been a transformative year for Vodafone. Vodafone has agreed to merge with Three in the UK, has agreed to sell Vodafone Spain to Zegona, and has agreed to sell Vodafone Italy to Swisscom. Each of these transactions are currently under review by the relevant competition authorities so are no sure things, but it at least gives Vodafone a roadmap for the future."
