Thank you for visiting, don't forget to subscribe by following here if you enjoy our content. We use follow.it to give you maximum control over your news.
Vodafone’s ongoing turnaround efforts have hit a snag as sales deteriorate in its largest market, Germany, despite showing promising growth in other regions. The telecommunications giant reported a 5.2 per cent rise in organic service revenue during the December quarter, surpassing analyst expectations of 3.3 per cent.
The UK market demonstrated robust performance with a 3.3 per cent growth in organic service revenue, while markets in Turkey, South Africa, and Egypt also posted strong results. However, the German operations continued to struggle, with organic service revenue declining by 6.4 per cent, marking a steeper fall than the previous quarter’s 6.2 per cent decrease.
Chief Executive Margherita Della Valle’s transformation strategy faces its most significant test in Germany, where recent legislative changes requiring the unbundling of television cable, broadband, and telephone services have cost the company approximately €400 million in revenue this year. The German market, representing 34 per cent of group revenue, continues to lose mobile and broadband customers.
The company’s shares dropped 7.2 per cent to 65p in afternoon trading, hovering near their lowest point in three decades. Della Valle remains focused on delivering transformation, acknowledging that the German turnaround will take time to materialise in financial results.
Looking ahead, Vodafone’s £16.5 billion merger with Three in the UK market is expected to complete before June’s end, positioning the company as the UK’s largest mobile operator with 29 million customers. The strategic sale of Italian and Spanish businesses for €12.1 billion in upfront cash will reshape the group’s focus primarily on the UK and German markets.
Total revenue reached €9.8 billion, marking a 5 per cent increase, while adjusted earnings before interest, taxes and other items rose 2.2 per cent to €2.8 billion. The group maintains its forecast for adjusted earnings of approximately €11 billion and adjusted free cash flow of at least €2.4 billion this year.
Post Disclaimer
The following content has been published by Stockmark.IT. All information utilised in the creation of this communication has been gathered from publicly available sources that we consider reliable. Nevertheless, we cannot guarantee the accuracy or completeness of this communication.
This communication is intended solely for informational purposes and should not be construed as an offer, recommendation, solicitation, inducement, or invitation by or on behalf of the Company or any affiliates to engage in any investment activities. The opinions and views expressed by the authors are their own and do not necessarily reflect those of the Company, its affiliates, or any other third party.
The services and products mentioned in this communication may not be suitable for all recipients, by continuing to read this website and its content you agree to the terms of this disclaimer.