Vodafone Group Plc has unveiled its FY25 preliminary results, showcasing a 2.0% revenue increase to €37.4 billion (A$65.728 billion), despite foreign exchange headwinds.
Service revenue climbed 2.8% to €30.8 billion, with organic growth hitting 5.1%.
However, adjusted EBITDAaL dipped 0.8% to €10.9 billion, and a €4.5 billion impairment charge resulted in a €0.4 billion operating loss.
Shareholders felt the pinch, with the basic loss per share from continuing operations at 15.86 euro cents, a sharp drop from 4.45 euro cents in FY24.
Dividends were halved to 4.5 euro cents, reflecting Vodafone’s cautious financial stance.
The telecom giant is restructuring its European footprint with the sale of Vodafone Spain and Italy.
A merger with Three UK is on track for H1 2025, while digital services now contribute 10% to Group service revenue.
Customer satisfaction is improving, particularly in the UK, and Vodafone expects broad-based momentum across Europe and Africa, with Germany poised for a turnaround.
Earnings per share took a hit due to impairment losses and tax expenses, but adjusted basic earnings per share rose to 7.87 euro cents, up from 7.47 euro cents in FY24, thanks to lower financing costs.
Vodafone’s dividend strategy remains conservative, with a final dividend of 2.25 euro cents, down from 4.5 euro cents last year. The ex-dividend date is set for 5 June 2025, with payment scheduled for 1 August 2025.
Meanwhile, Vodafone in South Africa (Vodacom) is embroiled in a legal battle over the 'Please Call Me' service. Kenneth Makate’s compensation claim, initially set at R47 million (€2 million), was overturned, with the SCA ruling he is entitled to 5%-7.5% of PCM revenue, amounting to R29 billion (€1.5 billion). Vodacom has appealed to the Constitutional Court, with a decision pending.
Looking ahead, Vodafone anticipates medium-term growth, particularly in Türkiye and Africa, where organic growth hit 83.4%.
The Group’s free cash flow rose to €1.85 billion, up from €1.78 billion in FY24. Vodafone Business saw 4.0% revenue growth, reinforcing its strategic push into enterprise services.
The company remains cautiously optimistic, but warns of economic, competitive, and regulatory risks that could impact its trajectory.
Vodafone shares were up 1.75% at 10 a.m. GMT after the company met analyst expectations.
At the time of writing, the Vodafone Group plc (LON: VOD) share price was GBX76.88, up 4.42 (6.10%) today, with a market cap of around 19.10 billion (A$39 billion).
