Here is a summary of the key points from the trading update for Vodafone Group Plc for the third quarter of fiscal year 2025 (Q3 FY25)
Financial Performance
Group total revenue increased by 5.0% to €9.8 billion in Q3, driven by organic service revenue growth.
Group service revenue grew by 5.6% in Q3 to €7.9 billion, with an organic growth of 5.2%. This acceleration was driven by strong performance in the UK and Africa.
Group Adjusted EBITDAaL (a non-GAAP measure) increased by 2.2% on an organic basis to €2.8 billion. The Adjusted EBITDAaL margin was 28.8%, a decrease of 0.5 percentage points year-on-year on an organic basis.
The company reiterated its full-year financial guidance, expecting Group Adjusted EBITDAaL of approximately €11 billion and Group Adjusted free cash flow of at least €2.4 billion.
Operational Highlights
The sale of Vodafone Italy to Swisscom AG for €8 billion was completed on December 31, 2024, and the proceeds will be used for share buybacks and debt reduction.
The UKs Competition and Markets Authority approved the merger of Vodafone and Three UK in December 2024, with the merger expected to formally complete in the next few months.
Germanys performance was impacted by the TV law change, resulting in a 6.4% decline in service revenue. Excluding this impact, service revenue declined by 2.6% due to lower broadband service revenue.
The UKs organic service revenue growth accelerated to 3.3% in Q3, driven by improvements in the customer experience.
Other Europe and Türkiye maintained stable organic service revenue growth, with Türkiyes service revenue increasing by 53.1% in euro terms, excluding the hyperinflationary adjustment.
Africas organic service revenue growth improved to 11.6% in Q3, supported by South Africa and Egypt.
Vodafone Business continued its growth momentum, with a 4.3% organic service revenue increase driven by double-digit growth in digital services.
The company provided detailed segment performance and growth metrics for Germany, the UK, Other Europe, Türkiye, and Africa. It also included notes on the basis of preparation, critical accounting judgments, non-GAAP measures, and definitions of key terms.