Vodafone Group Plc reported its H1 FY26 results on November 11, 2025, highlighting a strong performance with total revenue increasing by 7.3% to €19.6 billion, driven by service revenue growth and the consolidation of Three UK. Key financial highlights include
**Service Revenue Growth**Reported service revenue grew by 8.1% to €16.3 billion, with organic growth of 5.7%. This was supported by strong performances in the UK, Türkiye, and Africa, as well as a return to growth in Germany.
**Adjusted EBITDAaL**Increased by 5.9% to €5.7 billion on a reported basis and by 6.8% organically, despite challenges like the TV law change impact in Germany and continued commercial investments.
**Operating Profit**Decreased by 9.2% to €2.2 billion due to higher depreciation and amortization from the Three UK consolidation and lower other income.
**Shareholder Returns**Completed €3.0 billion in share buybacks since May 2024, with an additional €1.0 billion remaining. A new €500 million tranche commenced on the announcement date.
**FY26 Guidance**Vodafone now expects to deliver at the upper end of its guidance ranges, with Adjusted EBITDAaL of €11.3-11.6 billion and Adjusted free cash flow of €2.4-2.6 billion.
**Dividend Policy**Introduced a new progressive dividend policy, expecting a 2.5% increase in the FY26 dividend per share.
**Operational Highlights**
**VodafoneThree Integration**Made significant progress in integrating Vodafone and Three networks in the UK, with immediate improvements in network quality and customer experience.
**Customer Satisfaction**Launched the Ask Once customer service initiative in three markets, achieving leading NPS positions in 11 markets.
**Digital Services**Strong growth in digital services revenue, particularly in Business (12.2% in Q2) and Financial services in Africa (21.8% in Q2).
**Generative AI**Deployed AI solutions like SuperTobi across all European markets, achieving a 70% end-to-end resolution rate and higher customer satisfaction.
**Segment Performance**
**Germany**Returned to service revenue growth in Q2 (+0.5%), supported by higher wholesale revenue and the end of the TV law change impact.
**UK**Organic service revenue growth of 1.2% in Q2, with strong commercial momentum and rapid integration of VodafoneThree.
**Africa**Maintained double-digit organic service revenue growth (13.5% in Q2), driven by strong demand for data and financial services in Egypt and Vodacoms international markets.
**Türkiye**Service revenue grew by 55.6% organically, supported by price actions, increased data usage, and strong Business growth.
**Strategic Initiatives**
**Network Expansion**Continued fiberisation of the cable network in Germany and progressed the OXG joint ventures fibre buildout.
**Acquisitions**Completed the acquisition of Telekom Romania Mobile Communications S.A. assets and announced the acquisition of Skaylink GmbH to enhance digital services.
**Sustainability**Committed to investing £11 billion (€12.6 billion) in the UK over the next 10 years, including £2 billion (€2.3 billion) in network upgrades over the next 8 years.
**Financial Position**
**Net Debt**Increased to €25.9 billion due to the VodafoneThree merger, share buybacks, and dividends, partially offset by bond repayments.
**Liquidity**Maintained strong liquidity with cash and cash equivalents totaling €10.9 billion.
**Outlook**
Vodafone is optimistic about its multi-year growth trajectory, supported by operational improvements, strategic acquisitions, and a focus on digital transformation. The company remains committed to delivering sustainable Adjusted free cash flow growth and enhancing shareholder value through its progressive dividend policy.
Here is the comparison of financials and debt year on year presented as an HTML table:
**Key Observations:** 1. **Revenue Growth:** Total revenue increased by 7.3%, driven by strong service revenue growth (8.1%) and the consolidation of Three UK.
2. **Profitability:** Adjusted EBITDAaL grew by 5.9%, but operating profit decreased by 9.2% due to higher depreciation and amortization from the Three UK consolidation.
3. **Debt Reduction:** Net debt decreased significantly by 18.4%, reflecting improved cash flow and debt management.
4. **Cash Flow:** Cash from operating activities decreased by 9.8%, while adjusted free cash flow improved by 38.6%, indicating better operational efficiency. This table provides a concise comparison of key financial metrics and debt levels between H1 FY26 and H1 FY25 for Vodafone Group.
