---
title: "Vodafone Faces German Market Challenges as Global Sales Show Mixed Results"
publisher: "Stockmark.IT"
author: "Stockmark.IT Website"
published: "2025-02-05T04:33:11+00:00"
modified: "2025-02-04T17:44:47+00:00"
date: 2025-02-05
canonical: "https://stockmark.it/vodafone-faces-german-market-challenges-as-global-sales-show-mixed-results/"
category: "Global Trade"
categories: ["Global Trade", "Markets"]
image: "https://i0.wp.com/stockmark.it/wp-content/uploads/WhatsApp-Image-2025-02-04-at-17.36.50.jpeg?fit=1024%2C576&quality=89&ssl=1"
format: "news"
language: "en-GB"
---

# Vodafone Faces German Market Challenges as Global Sales Show Mixed Results

**Published:** February 5, 2025
**Author:** Stockmark.IT Website
**Categories:** Global Trade, Markets
**Featured image:** ![The image shows the German flag with a Vodafone logo in the center. The flags black, red, and gold stripes are visible, and the logo is overlaid on an outline of Germany. The fabric is wrinkled, creating a textured effect.](https://i0.wp.com/stockmark.it/wp-content/uploads/WhatsApp-Image-2025-02-04-at-17.36.50.jpeg?fit=1024%2C576&quality=89&ssl=1)

---

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.

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