20 May 2025
If you are covering Vodafone’s latest financial results, please find below a comment from Matt Dorset, equity research analyst at Quilter Cheviot:
“Vodafone delivered a somewhat mixed set of results with both revenue and earnings came in slightly behind expectations. Furthermore, weakness in Europe and Germany continues to persist. Service revenue in Germany, which is Vodafone’s most significant market, declined 5% over the year, largely due to a law change in that country which allows tenants to opt out of TV services provided by their landlords. Even excluding this service, revenue was down 2%, so fairly disappointing for the company. Much of this was due to the loss of over 100,000 broadband subscribers, although mobile performance was stronger with 90,000 net adds despite increased competitive intensity.
“The UK continues to be a better performing market with service revenue growth of 1.9%, with Vodafone’s continued investment in customer experience paying off. Improvement in that customer service is also evident as Vodafone’s Ofcom mobile complaints were down 30% in the year, and its Net Promoter Score was market leading.
“Guidance for the next financial year was stronger, with Vodafone guiding to positive free cash flow growth after years of decline, ahead of consensus. This is despite the merger with Three in the UK. However, its guidance for Europe specifically continues to be weak, with earnings expected to be 3% behind expectations with Vodafone continuing to rely on growth in Africa and Turkey to offset weakness elsewhere.”
