UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULES 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
Dated
July 25, 2024
Commission
File Number: 001-10086
VODAFONE GROUP
PUBLIC LIMITED COMPANY
(Translation
of registrant’s name into English)
VODAFONE
HOUSE, THE CONNECTION, NEWBURY, BERKSHIRE, RG14 2FN,
ENGLAND
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form
20-F ✓
Form 40-F _
This
Report on Form 6-K contains a Stock Exchange Announcement dated 25
July 2024 entitled ‘Vodafone Q1 FY25 Trading
Update’.
|
Vodafone Group
Plc
Q1
FY25 Trading Update
25
July 2024
|
|
“Our performance in the first quarter is consistent with our
full year guidance, which we reiterate today. We continue to
deliver strong revenue growth in Africa and Turkey, whilst lower
inflation is slowing revenue growth in Europe and accelerating
Group EBITDAaL growth. Service revenue for the Group grew 5.4%,
although in Germany we saw an expected service revenue decline,
following the ongoing impact of the TV law change.
During the last few months, we have announced the final step in
reducing our stake in Vantage Towers to 50% for €1.3 billion
and commenced our €2 billion share buyback programme
following the sale of Spain. We continue to progress our
transactions in Italy and the UK as well as the broader
transformation of Vodafone, focused on customer experience,
Business growth and operational execution in Germany. The actions
we are taking now will deliver improved performance and underpin
the turnaround of Vodafone.”
Margherita Della Valle
Group Chief Executive
|
Financial summary
|
Q1 FY25
|
Q1 FY24
|
Reported
|
Organic
|
|
€m
|
€m
|
change %
|
change %1
|
|
Service revenue
|
7,465
|
7,235
|
3.2
|
5.4
|
|
Other revenue
|
1,571
|
1,558
|
0.8
|
|
|
Total revenue
|
9,036
|
8,793
|
2.8
|
|
|
Adjusted EBITDAaL1
|
2,681
|
2,626
|
2.1
|
5.1
|
|
Adjusted EBITDAaL margin1
|
29.7%
|
29.9%
|
|
|
|
Operating profit
|
1,545
|
1,081
|
42.9
|
|
|
1. Non-GAAP measure. See page 7. ǀ
2. The FY25 guidance foreign exchange
rates were: €1 : GBP 0.86, €1 : ZAR 20.58, €1 :
TRY 34.98, €1 : EGP 51.75.
|
|
Reported measures
-
Total revenue
increased by 2.8% (Q4: 2.8%) to €9.0 billion as higher
organic service revenue was partially offset by adverse foreign
exchange movements
-
Operating profit
increased by 42.9% to €1.5 billion, primarily driven by a
€0.7 billion gain on the disposal of an 18% stake in Indus
Towers, leaving Vodafone with a 3.1% shareholding
Organic and Adjusted measures
-
Group service
revenue grew by 5.4% (Q4: 7.1%), with continuing strong growth in
Turkey and Africa
-
Service revenue in
Germany decreased by 1.5% (Q4: +0.6%) primarily due to the impact
of the MDU TV law change. Excluding this impact, service revenue in
Germany declined by 0.3%, primarily due to the lapping of prior
year price increases and project phasing in Business
-
Vodafone Business
service revenue grew by 2.6% (Q4: 5.4%), with project phasing in
Germany and Other Europe impacting trends. However, we expect this
to normalise throughout the rest of FY25
-
Service revenue
growth in Africa remained strong at 10.0% (Q4: 10.0%),
supported by
price increases in South Africa and continued good commercial
momentum in Egypt
-
Adjusted EBITDAaL
increased by 5.1%, with an acceleration in growth driven by lower
cost inflation and the phasing of operational expenditure. The
Adjusted EBITDAaL margin was 0.1 percentage points higher
year-on-year on an organic basis at 29.7%
-
In July, we
announced the sale of a further 10% stake in Oak Holdings GmbH, the
partnership that co-controls Vantage Towers, for €1.3
billion, achieving the 50:50 joint ownership structure as
planned
-
Initial €500
million tranche of share buybacks almost complete. Second tranche
commencing shortly
-
FY25 guidance
re-iterated2: Adjusted EBITDAaL
of c.€11 billion and Adjusted free cash flow to be at least
€2.4 billion
For more information, please contact:
|
Investor Relations:
|
Investors.vodafone.com
|
ir@vodafone.co.uk
|
Media Relations:
|
Vodafone.com/media/contact
|
GroupMedia@vodafone.com
|
Registered
Office: Vodafone House, The Connection, Newbury, Berkshire RG14
2FN, England. Registered in England No. 1833679
A
webcast Q&A session will be held at 10:00 BST on 25 July 2024.
The webcast and supporting information can be accessed at
Investors.vodafone.com
In the
financial year ended 31 March 2024, in accordance with
International Financial Reporting Standards (‘IFRS’),
we updated our financial reporting to recognise that Vodafone Spain
and Vodafone Italy are discontinued operations. The results of
discontinued operations are excluded from the Group’s segment
reporting.
Geographic performance summary
|
|
|
Service revenue
|
Other revenue
|
Total revenue
|
|
|
|
|
Re-presented1
|
|
Re-presented1
|
|
Re-presented1
|
|
|
|
Q1 FY25
|
Q1 FY24
|
Q1 FY25
|
Q1 FY24
|
Q1 FY25
|
Q1 FY24
|
|
|
|
€m
|
€m
|
€m
|
€m
|
€m
|
€m
|
|
Germany
|
2,778
|
2,819
|
317
|
328
|
3,095
|
3,147
|
|
UK
|
1,429
|
1,401
|
260
|
283
|
1,689
|
1,684
|
|
Other Europe
|
1,180
|
1,161
|
202
|
171
|
1,382
|
1,332
|
|
Turkey
|
515
|
333
|
149
|
123
|
664
|
456
|
|
Africa
|
1,449
|
1,426
|
364
|
331
|
1,813
|
1,757
|
|
Common Functions
|
146
|
131
|
295
|
343
|
441
|
474
|
|
Eliminations
|
(32)
|
(36)
|
(16)
|
(21)
|
(48)
|
(57)
|
|
Group
|
7,465
|
7,235
|
1,571
|
1,558
|
9,036
|
8,793
|
Note:
1.
The results for the
quarter ended 30 June 2023 have been re-presented to report the
results of Vodafone Spain and Vodafone Italy as discontinued
operations. The disposal of Vodafone Spain completed on 31 May
2024.
|
Service revenue growth
|
FY24
|
|
FY25
|
|
Q1
|
Q2
|
H1
|
Q3
|
Q4
|
H2
|
Total
|
|
Q1
|
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
|
%
|
|
Germany
|
(1.3)
|
1.0
|
(0.1)
|
0.3
|
0.6
|
0.5
|
0.2
|
|
(1.5)
|
|
UK
|
3.0
|
5.1
|
4.1
|
5.5
|
6.8
|
6.2
|
5.1
|
|
2.0
|
|
Other Europe
|
(7.4)
|
(7.2)
|
(7.3)
|
(7.8)
|
0.3
|
(4.0)
|
(5.7)
|
|
1.6
|
|
Turkey
|
(8.5)
|
21.6
|
7.4
|
6.8
|
15.6
|
11.7
|
9.6
|
|
54.7
|
|
Africa
|
(14.3)
|
(14.8)
|
(14.6)
|
(7.5)
|
1.2
|
(3.4)
|
(9.2)
|
|
1.6
|
|
Group
|
(4.7)
|
(1.9)
|
(3.3)
|
(1.5)
|
2.9
|
0.7
|
(1.3)
|
|
3.2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic service revenue growth1
|
FY24
|
|
FY25
|
|
Q1
|
Q2
|
H1
|
Q3
|
Q4
|
H2
|
Total
|
|
Q1
|
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
|
%
|
|
Germany
|
(1.3)
|
1.1
|
(0.1)
|
0.3
|
0.6
|
0.5
|
0.2
|
|
(1.5)
|
|
UK
|
5.7
|
5.5
|
5.6
|
5.2
|
3.6
|
4.4
|
5.0
|
|
–
|
|
Other Europe
|
4.1
|
3.8
|
3.9
|
3.6
|
5.5
|
4.6
|
4.2
|
|
2.3
|
|
Turkey
|
74.1
|
85.0
|
79.3
|
90.4
|
105.6
|
97.8
|
88.5
|
|
91.9
|
|
Africa
|
9.0
|
9.0
|
9.0
|
8.8
|
10.0
|
9.4
|
9.2
|
|
10.0
|
|
Group
|
5.4
|
6.6
|
6.0
|
6.3
|
7.1
|
6.7
|
6.3
|
|
5.4
|
Note:
1.
Non-GAAP measure.
See page 7 for more information.
|
Group profitability
|
|
FY24
|
|
FY25
|
|
|
Q1
|
Q2
|
H1
|
H2
|
Total
|
|
Q1
|
|
Operating profit
|
€m
|
1,081
|
776
|
1,857
|
1,808
|
3,665
|
|
1,545
|
|
Adjusted EBITDAaL1
|
€m
|
2,626
|
2,801
|
5,427
|
5,592
|
11,019
|
|
2,681
|
|
Adjusted EBITDAaL margin1
|
%
|
29.9
|
30.5
|
30.2
|
29.8
|
30.0
|
|
29.7
|
|
Organic Adjusted EBITDAaL growth1
|
%
|
|
|
3.3
|
1.2
|
2.2
|
|
5.1
|
Note:
1.
Non-GAAP measure.
See page 7 for more information.
|
Germany ⫶
Growth impacted by MDU
transition
|
|
|
|
|
|
|
|
|
37% of Group service revenue
|
Q1 FY25
|
Q1 FY24
|
Reported
|
Organic
|
|
|
€m
|
€m
|
change %
|
change %1
|
|
Total revenue
|
3,095
|
3,147
|
(1.7)
|
|
|
- Service revenue
|
2,778
|
2,819
|
(1.5)
|
(1.5)
|
|
- Other revenue
|
317
|
328
|
|
|
Note:
1.
Non-GAAP
measure. See page 7 for more information.
Growth
Total revenue decreased by 1.7% driven by lower service revenue and
equipment sales.
Service revenue declined by 1.5% (Q4: +0.6%) as the cumulative
impact of broadband and TV customer losses and lower regulated
rates for terminating mobile calls, was partly offset by higher
broadband ARPU. The quarter-on-quarter slowdown was primarily
driven by the lapping of prior year price increases and Business
performance. It also included a -1.2 percentage point impact (Q4:
-0.9 percentage points) from the end to bulk TV contracting in
Multi Dwelling Units (‘MDUs’).
Fixed service revenue decreased by 2.0% (Q4: -0.2%), as the impact
of a lower broadband and TV customer base was only partly offset by
broadband ARPU growth. The MDU transition had a -2.1 percentage
point impact (Q4: -1.7 percentage points) on fixed service revenue
growth in Q1. Excluding this impact, the quarter-on-quarter
slowdown was primarily driven by lower broadband ARPU growth
following the introduction of price increases in the same period
last year.
Mobile service revenue declined by 0.8% (Q4: +1.8%), as the phasing
of Business project revenue, including IoT, a reduction in Consumer
ARPU growth due to greater promotional competition in Consumer
low-end segment, and mobile termination rate cuts, were partly
offset by a higher contract customer base.
Vodafone Business service revenue decreased by 1.7% (Q4: +1.0%) as
good demand for fixed services, including cloud and security, was
offset primarily by the phasing of project work, including IoT, as
well as lower mobile ARPU from large corporate contract
renewals.
Customers
In 2024, our market-leading broadband network quality position has
once again been recognised in the latest independent network test
results from Connect, CHIP and ComputerBild. However, the impact of
broadband price increases last year continued to affect our
commercial performance, with our broadband customer base declining
by 55,000 in Q1 (Q4: -62,000), including the loss of 32,000
customers on our gigabit-capable network.
Ahead of changes to German TV laws, which took effect in July 2024,
and changes to the practice of bulk TV contracting in MDUs, we have
continued to migrate end users to new contracts at scale. We
continue to expect to retain around 50% of the 8.5 million MDU TV
households. By the end of June 2024, we had actively retained 2.6
million (Q4: 1.9 million) households. Our total TV customer base
declined by 0.7 million during the quarter due to the MDU
transition.
Our Consumer mobile contract customer base declined by 9,000 in Q1,
as our increased focus on higher value branded and direct sales
channels was offset by the anticipated loss of low-margin customers
through resellers’ channels. In addition, we saw 30,000
corporate account losses in Business due to some large contract
tenders in the prior year. We added a further 2.0 million IoT
connections, driven by continued demand from the automotive sector.
Following our announced long-term national roaming agreement with
1&1, we have started technical user testing in anticipation of
the customer migration.
|
UK ⫶ Lower
inflation driving revenue slowdown
|
|
|
|
|
|
|
|
|
19% of Group service revenue
|
Q1 FY25
|
Q1 FY24
|
Reported
|
Organic
|
|
|
€m
|
€m
|
change %
|
change %1
|
|
Total revenue
|
1,689
|
1,684
|
0.3
|
|
|
- Service revenue
|
1,429
|
1,401
|
2.0
|
–
|
|
- Other revenue
|
260
|
283
|
|
|
Note:
1.
Non-GAAP
measure. See page 7 for more information.
Growth
Total revenue increased by 0.3% as higher service revenue and an
appreciation of the pound sterling against the euro were offset by
lower equipment revenue.
Service revenue increased by 2.0% (Q4: +6.8%). Organic service
revenue growth was stable in Q1 (Q4: +3.6%) as growth in the
Consumer segment was offset by a decline in Business. Lower growth
in the quarter was driven by the lower inflation-linked price rises
and the ongoing dilution of the back book from front book pricing
in mobile.
Vodafone Business service revenue declined by 1.1% (Q4: +2.6%).
Organic growth in Vodafone Business service revenue decreased by
3.0% (Q4: -0.5%), as growth in fixed was offset by a decline in
mobile, primarily driven by lower inflation-linked price
increases.
Customers
In mobile, our Consumer contract customer base increased by 22,000
in the quarter. However, this was offset by large low-value
contract disconnections in Business, resulting in our total
contract customer base declining by 29,000 in Q1. Our digital
prepaid sub-brand ‘VOXI’ continued to grow, with 17,000
customers added during the quarter.
In fixed, we continue to be one of the fastest growing broadband
providers in the UK and our customer base increased by 44,000 in
Q1. In July, we announced that we now offer the fastest speeds in
more locations across the UK than any other major provider,
covering 16.2 million households. We also provide the UK’s
fastest WiFi technology throughout the home with our Pro II
broadband product.
Merger of Vodafone UK and Three UK
In June 2023, we announced a binding agreement to combine our UK
business with Three UK to create a sustainable, and competitive
third scaled network operator in the UK. Following the merger,
which we expect to close around the end of the 2024 calendar year,
Vodafone and CK Hutchison will own 51% and 49% of the combined
business, respectively. Full details of the transaction can be
found here: investors.vodafone.com/merger-of-vodafone-uk-and-three-uk.
In July 2024, we announced a new mobile network sharing agreement
with Virgin Media O2 that extends the current agreement for more
than a decade. Subject to the approval of the merger with Three UK,
this new agreement will also support the enlarged network of the
combined business, providing significant network improvements and
giving customers more choice, better quality and greater coverage
across the UK.
|
Other Europe ⫶ Good
momentum, some Business project phasing
|
|
|
|
|
|
|
|
|
16% of Group service revenue
|
Q1 FY25
|
Q1 FY24
|
Reported
|
Organic
|
|
|
€m
|
€m
|
change %
|
change %1
|
|
Total revenue
|
1,382
|
1,332
|
3.8
|
|
|
- Service revenue
|
1,180
|
1,161
|
1.6
|
2.3
|
|
- Other revenue
|
202
|
171
|
|
|
Note:
1.
Non-GAAP
measure. See page 7 for more information.
Growth
Total revenue increased by 3.8%, due to higher service and
equipment revenue.
Service revenue grew by 1.6% (Q4: +0.3%). Organic service revenue
increased by 2.3% (Q4: +5.5%), supported by price actions in most
markets, partly offset by lower mobile termination rates. The lower
growth rate in the quarter reflected the phasing of Business
project revenue, as well as a lower inflation-linked price
increases in most markets.
In Portugal, our Consumer and Business segments continued to
perform well, also supported by our price actions. Service revenue
in Ireland was impacted by lower mobile termination rates and lower
Business fixed revenue, partially offset by a higher customer base
in mobile and broadband. Service revenue in Greece increased,
supported by annual contractual price increases and Business
demand.
Vodafone Business service revenue increased by 2.5% (Q4: +8.1%).
Organic growth in Vodafone Business service revenue was 3.3% (Q4:
+12.2%), supported by digital services. The lower growth rate in Q1
was driven by higher project revenue in FY24.
Customers
Our good commercial momentum continued as we added 121,000 mobile
contract and 12,000 broadband customers in Q1.
|
|
|
|
|
|
|
|
Turkey ⫶ Continued growth ahead of inflation and in euro
terms
|
|
|
|
|
|
|
|
|
7% of Group service revenue
|
Q1 FY25
|
Q1 FY24
|
Reported
|
Organic
|
|
|
€m
|
€m
|
change %
|
change %1
|
|
Total revenue
|
664
|
456
|
45.6
|
|
|
- Service revenue
|
515
|
333
|
54.7
|
91.9
|
|
- Other revenue
|
149
|
123
|
|
|
Note:
1.
Non-GAAP
measure. See page 7 for more information.
Growth
Total revenue increased by 45.6% to €0.7 billion, with strong
service revenue growth partly offset by a significant devaluation
of the local currency.
Despite currency devaluation, service revenue continued to grow in
euro terms. Organic growth in service revenue in Turkey was 91.9%
(Q4: +105.6%), driven by ongoing repricing actions to reflect the
high inflationary environment and value accretive base management
activities.
Vodafone Business service revenue increased by 71.1% (Q4: +20.3%).
Organic growth in Vodafone Business service revenue was 112.6% (Q4:
+102.2%), driven by digital services.
Customers
We maintained our good commercial momentum, adding 69,000 mobile
contract customers during the quarter, including migrations from
prepaid customers.
Hyperinflationary accounting in Turkey
Turkey was designated as a hyperinflationary economy on 1 April
2022 in line with IAS 29 ‘Financial Reporting in
Hyperinflationary Economies’. Organic growth metrics exclude
the impact of the hyperinflation adjustment and foreign exchange
translation in Turkey.
|
Africa ⫶ Good
growth continuing
|
|
|
|
|
|
|
|
|
19% of Group service revenue
|
Q1 FY25
|
Q1 FY24
|
Reported
|
Organic
|
|
|
€m
|
€m
|
change %
|
change %1
|
|
Total revenue
|
1,813
|
1,757
|
3.2
|
|
|
- Service revenue
|
1,449
|
1,426
|
1.6
|
10.0
|
|
- Other revenue
|
364
|
331
|
|
|
Note:
1.
Non-GAAP
measure. See page 7 for more information.
Growth
Total revenue increased by 3.2% to €1.8 billion due to higher
service and equipment revenue.
Service revenue increased by 1.6% (Q4: +1.2%). Organic growth in
service revenue grew by 10.0% (Q4: +10.0%) supported by price
increases in South Africa and continued strong growth in
Egypt.
In South Africa, service revenue growth was supported by Consumer
mobile, with growth accelerating as a result of prepaid price
increases in the quarter, and good fixed line growth in Consumer
and Business. Service revenue in Egypt grew strongly and remained
above inflation in Q1. The growth in Egypt was supported by strong
data growth, successful commercial campaigns, price increases
implemented in the prior quarter and strong growth in our financial
services product, ‘Vodafone Cash’. In Vodacom’s
international markets, service revenue growth was supported by a
higher customer base and strong M-Pesa and data demand. M-Pesa
revenue grew by 11.0% on an organic basis, representing 26.9% of
service revenue.
Vodacom Business service revenue grew by 2.3% (Q4: -0.4%). Organic
growth in Vodacom Business service revenue increased by 8.4% (Q4:
7.8%), as good trading momentum in South Africa was supported by
strong demand for digital services as well as mobile price
increases.
Customers
In South Africa, we added 53,000 mobile contract customers in Q1.
Across our active customer base, 77.9% now use data services. Our
‘VodaPay’ super-app continued to gain traction with 6.9
million registered users.
In Egypt, we added 137,000 contract customers and 0.6 million
prepaid mobile customers in Q1. ‘Vodafone Cash’ now has
8.7 million active users with 0.5 million users added during the
quarter.
In Vodacom’s international markets, we added 0.9 million
mobile customers with good growth in data customers supported by
our innovative and new prepaid handset financing model. Our mobile
customer base is now 55.1 million, with 66.8% of active customers
using our data services. Our M-Pesa customer base now totals 22.2
million.
Further information on our operations in Africa can be accessed
here: vodacom.com.
In the
discussion of the Group’s reported operating results,
non-GAAP measures are presented to provide readers with additional
financial information that is regularly reviewed by management.
This additional information presented is not uniformly defined by
all companies including those in the Group’s industry.
Accordingly, it may not be comparable with similarly titled
measures and disclosures by other companies. Additionally, certain
information presented is derived from amounts calculated in
accordance with IFRS but is not itself a measure defined under
GAAP. Such measures should not be viewed in isolation or as an
alternative to the equivalent GAAP measure. The non-GAAP measures
discussed in this document are listed below.
|
Non-GAAP measure
|
Defined on page
|
Closest equivalent GAAP measure
|
Reconciled on page
|
|
Performance metrics
|
|
|
|
|
Organic
revenue growth
|
Page
8
|
Revenue
|
Pages 9
and 10
|
|
Organic
service revenue growth (Group and Operating segments)
|
Page
8
|
Service
revenue
|
Pages 9
and 10
|
|
Organic
mobile service revenue growth
|
Page
8
|
Service
revenue
|
Pages 9
and 10
|
|
Organic
fixed service revenue growth
|
Page
8
|
Service
revenue
|
Pages 9
and 10
|
|
Organic
Vodafone Business service revenue growth (Group and Operating
segments)
|
Page
8
|
Service
revenue
|
Pages 9
and 10
|
|
Organic
M-Pesa revenue growth
|
Page
8
|
Service
revenue
|
Pages 9
and 10
|
|
Group
Adjusted EBITDAaL
|
Page
11
|
Operating
profit
|
Page
11
|
|
Organic
Group Adjusted EBITDAaL growth
|
Pages 8
and 11
|
Operating
profit
|
Page
11
|
|
Group
Adjusted EBITDAaL margin
|
Page
11
|
Operating
profit
|
Page
11
|
|
Organic
percentage point change in Group Adjusted EBITDAaL
margin
|
Pages 8
and 11
|
Operating
profit
|
Page
11
|
Non-GAAP measures
Performance metrics
Organic growth
Organic
growth presents performance on a comparable basis, excluding the
impact of foreign exchange rates, mergers and acquisitions, the
hyperinflation adjustment in Turkey and other adjustments to
improve the comparability of results between periods.
Organic
growth is calculated for revenue and profitability metrics, as
follows:
-
Mobile service
revenue;
-
Vodafone Business
service revenue;
-
Group Adjusted
EBITDAaL; and
-
Group Adjusted
EBITDAaL margin
Whilst
organic growth is not intended to be a substitute for reported
growth, nor is it superior to reported growth, we believe that the
measure provides useful and necessary information to investors and
other interested parties for the following reasons:
-
It provides
additional information on underlying growth of the business without
the effect of certain factors unrelated to its operating
performance;
-
It is used for
internal performance analysis; and
-
It facilitates
comparability of underlying growth with other companies (although
the term ‘organic’ is not a defined term under GAAP and
may not, therefore, be comparable with similarly-titled measures
reported by other companies).
We have
not provided a comparative in respect of organic growth rates as
the current rates describe the change between the beginning and end
of the current period, with such changes being explained by the
commentary in this document. If comparatives were provided,
significant sections of the commentary for prior periods would also
need to be included, reducing the usefulness and transparency of
this document.
Non-GAAP measures
|
Quarter ended 30 June 2024
|
|
|
|
|
|
|
|
|
|
|
Re-presented1
|
Reported growth
|
M&A and Other
|
Foreign exchange
|
Organic growth
|
|
|
|
Q1 FY25
|
Q1 FY24
|
|
|
|
€m
|
€m
|
%
|
pps
|
pps
|
%
|
|
Service revenue
|
|
|
|
|
|
|
|
Germany
|
2,778
|
2,819
|
(1.5)
|
–
|
–
|
(1.5)
|
|
|
Mobile service revenue
|
1,231
|
1,240
|
(0.8)
|
–
|
–
|
(0.8)
|
|
|
Fixed service revenue
|
1,547
|
1,579
|
(2.0)
|
–
|
–
|
(2.0)
|
|
UK
|
1,429
|
1,401
|
2.0
|
–
|
(2.0)
|
–
|
|
|
Mobile service revenue
|
1,045
|
1,039
|
0.6
|
–
|
(2.0)
|
(1.4)
|
|
|
Fixed service revenue
|
384
|
362
|
6.1
|
–
|
(2.0)
|
4.1
|
|
Other Europe
|
1,180
|
1,161
|
1.6
|
–
|
0.7
|
2.3
|
|
Turkey
|
515
|
333
|
54.7
|
(80.1)
|
117.3
|
91.9
|
|
Africa
|
1,449
|
1,426
|
1.6
|
–
|
8.4
|
10.0
|
|
Common Functions
|
146
|
131
|
|
|
|
|
|
Eliminations
|
(32)
|
(36)
|
|
|
|
|
|
Total service revenue
|
7,465
|
7,235
|
3.2
|
(1.2)
|
3.4
|
5.4
|
|
Other revenue
|
1,571
|
1,558
|
|
|
|
|
|
Revenue
|
9,036
|
8,793
|
2.8
|
(1.3)
|
3.3
|
4.8
|
|
|
|
|
|
|
|
|
|
|
Other growth metrics
|
|
|
|
|
|
|
|
Vodafone Business - Service revenue
|
1,911
|
1,878
|
1.8
|
(0.6)
|
1.4
|
2.6
|
|
Germany - Vodafone Business service revenue
|
586
|
596
|
(1.7)
|
-
|
–
|
(1.7)
|
|
UK - Vodafone Business service revenue
|
522
|
528
|
(1.1)
|
–
|
(1.9)
|
(3.0)
|
|
Other Europe - Vodafone Business service revenue
|
372
|
363
|
2.5
|
–
|
0.8
|
3.3
|
|
Turkey - Vodafone Business service revenue
|
77
|
45
|
71.1
|
(89.7)
|
131.2
|
112.6
|
|
Africa - Vodacom Business service revenue
|
265
|
259
|
2.3
|
–
|
6.1
|
8.4
|
|
M-Pesa revenue
|
99
|
91
|
8.8
|
–
|
2.2
|
11.0
|
Note:
1.
The results for the
quarter ended 30 June 2023 have been re-presented to report the
results of Vodafone Spain and Vodafone Italy as discontinued
operations. The disposal of Vodafone Spain completed on 31 May
2024.
Non-GAAP measures
|
Quarter ended 31 March 2024
|
|
|
|
|
|
|
|
|
|
|
|
Reported growth
|
M&A and Other
|
Foreign exchange
|
Organic growth
|
|
|
|
Q4 FY24
|
Q4 FY23
|
|
|
|
€m
|
€m
|
%
|
pps
|
pps
|
%
|
|
Service revenue
|
|
|
|
|
|
|
|
Germany
|
2,839
|
2,821
|
0.6
|
–
|
–
|
0.6
|
|
|
Mobile service revenue
|
1,257
|
1,235
|
1.8
|
–
|
–
|
1.8
|
|
|
Fixed service revenue
|
1,582
|
1,586
|
(0.3)
|
0.1
|
–
|
(0.2)
|
|
UK
|
1,409
|
1,319
|
6.8
|
–
|
(3.2)
|
3.6
|
|
|
Mobile service revenue
|
1,012
|
948
|
6.8
|
–
|
(3.1)
|
3.7
|
|
|
Fixed service revenue
|
397
|
371
|
7.0
|
–
|
(3.5)
|
3.5
|
|
Other Europe1
|
1,181
|
1,178
|
0.3
|
4.8
|
0.4
|
5.5
|
|
Turkey2
|
525
|
454
|
15.6
|
1.1
|
88.9
|
105.6
|
|
Africa
|
1,484
|
1,466
|
1.2
|
–
|
8.8
|
10.0
|
|
Common Functions
|
140
|
128
|
|
|
|
|
|
Eliminations
|
(32)
|
(31)
|
|
|
|
|
|
Total service revenue
|
7,546
|
7,335
|
2.9
|
0.2
|
4.0
|
7.1
|
|
Other revenue
|
1,842
|
1,793
|
|
|
|
|
|
Revenue
|
9,388
|
9,128
|
2.8
|
1.2
|
4.3
|
8.3
|
|
|
|
|
|
|
|
|
|
|
Other growth metrics
|
|
|
|
|
|
|
|
Turkey - Service revenue
|
525
|
430
|
22.1
|
(18.2)
|
101.7
|
105.6
|
|
Vodafone Business - Service revenue
|
1,979
|
1,918
|
3.2
|
0.4
|
1.8
|
5.4
|
|
Germany - Vodafone Business service revenue
|
605
|
599
|
1.0
|
–
|
–
|
1.0
|
|
UK - Vodafone Business service revenue
|
545
|
531
|
2.6
|
–
|
(3.1)
|
(0.5)
|
|
Other Europe - Vodafone Business service revenue
|
399
|
369
|
8.1
|
3.5
|
0.6
|
12.2
|
|
Turkey - Vodafone Business service revenue
|
71
|
59
|
20.3
|
(17.9)
|
99.8
|
102.2
|
|
Africa - Vodacom Business service revenue
|
270
|
271
|
(0.4)
|
–
|
8.2
|
7.8
|
Notes:
1.
The comparative
period includes the results of Vodafone Hungary which, as
previously reported, was sold in January 2023.
2.
The comparative
period includes the results of Vodafone Ghana which, as previously
reported, was sold in February 2023.
Non-GAAP measures
|
Non-GAAP measure
|
Purpose
|
Definition
|
|
Group
Adjusted EBITDAaL
|
Adjusted
EBITDAaL is used in conjunction with financial measures such as
operating profit to assess our operating performance and
profitability.
It is a
key external metric used by the investor community to assess
performance of our operations.
It is
our segment performance measure in accordance with IFRS 8
(Operating Segments).
|
Adjusted
EBITDAaL is operating profit after depreciation on lease-related
right of use assets and interest on lease liabilities but excluding
depreciation, amortisation and gains/losses on disposal of owned
assets and excluding share of results of equity accounted
associates and joint ventures, impairment losses/reversals,
restructuring costs arising from discrete restructuring plans,
other income and expense and significant items that are not
considered by management to be reflective of the underlying
performance of the Group.
|
|
Group
Adjusted EBITDAaL margin
|
|
Group
Adjusted EBITDAaL margin is Group Adjusted EBITDAaL divided by
Revenue.
|
The
table below provides the reconciliations of: (i) Group Adjusted
EBITDAaL to Group Operating profit which is the closest equivalent
GAAP measure, and (ii) Reported growth in Group Adjusted EBITDAaL
to organic growth in Group Adjusted EBITDAaL.
|
|
|
|
Reported growth
|
M&A and Other
|
Foreign exchange
|
Organic growth
|
|
|
|
Q1 FY25
|
Q1 FY24
|
|
|
|
€m
|
€m
|
%
|
pps
|
pps
|
%
|
|
Group Adjusted EBITDAaL
|
2,681
|
2,626
|
2.1
|
(0.5)
|
3.5
|
5.1
|
|
Restructuring costs
|
(38)
|
(16)
|
|
|
|
|
|
Interest on lease liabilities
|
109
|
107
|
|
|
|
|
|
Profit/(loss) on disposal of property, plant and equipment and
intangible assets
|
2
|
(3)
|
|
|
|
|
|
Depreciation and amortisation of owned assets
|
(1,847)
|
(1,776)
|
|
|
|
|
|
Share of results of equity accounted associates and joint
ventures
|
48
|
(56)
|
|
|
|
|
|
Impairment reversal
|
-
|
64
|
|
|
|
|
|
Other income
|
590
|
135
|
|
|
|
|
|
Group Operating profit
|
1,545
|
1,081
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below provides the reconciliation between the reported
growth in the Group Adjusted EBITDAaL margin and the organic growth
in the Group Adjusted EBITDAaL margin.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported growth
|
M&A and Other
|
Foreign exchange
|
Organic growth
|
|
|
|
Q1 FY25
|
Q1 FY24
|
|
|
|
%
|
%
|
%
|
pps
|
pps
|
%
|
|
Percentage point change in Adjusted EBITDAaL margin
|
|
|
|
|
|
|
|
Group
|
29.7%
|
29.9%
|
(0.2)
|
0.2
|
0.1
|
0.1
|
|
Definitions
|
|
|
|
|
Key
terms are defined below. See page 7 for the location of definitions
for non-GAAP measures.
|
Term
|
Definition
|
|
Africa
|
Comprises
the Vodacom Group.
|
|
ARPU
|
Average
revenue per user, defined as customer revenue and incoming revenue
divided by average customers.
|
|
Common
Functions
|
Comprises
central teams and business functions.
|
|
Depreciation
and amortisation
|
The
accounting charge that allocates the cost of tangible or intangible
assets, whether owned or leased, to the income statement over its
useful life. The measure includes the profit or loss on disposal of
property, plant and equipment, software and leased
assets.
|
|
Eliminations
|
Refers
to the removal of intercompany transactions to derive the
consolidated financial statements.
|
|
Europe
|
Comprises
the Group’s European businesses and the UK.
|
|
Fixed
service revenue
|
Service
revenue (see below) relating to the provision of fixed line and
carrier services.
|
|
GAAP
|
Generally
Accepted Accounting Principles.
|
|
IFRS
|
International
Financial Reporting Standards.
|
|
Incoming
revenue
|
Comprises
revenue from termination rates for voice and messaging to Vodafone
customers.
|
|
Internet
of Things (‘IoT’)
|
The
network of physical objects embedded with electronics, software,
sensors, and network connectivity, including built-in mobile SIM
cards, that enable these objects to collect data and exchange
communications with one another or a database.
|
|
Mobile
service revenue
|
Service
revenue (see below) relating to the provision of mobile
services.
|
|
Other
Europe
|
Other
Europe markets comprise Portugal, Ireland, Greece, Romania, Czech
Republic and Albania.
|
|
Other
revenue
|
Other
revenue principally includes equipment revenue, interest income,
income from partner market arrangements and lease revenue,
including in respect of the lease out of passive tower
infrastructure.
|
|
Reported
growth
|
Reported
growth is based on amounts reported in euros and determined under
IFRS.
|
|
Revenue
|
The
total of Service revenue (see below) and Other revenue (see
above).
|
|
Roaming
|
Roaming
allows customers to make calls, send and receive texts and data on
our and other operators’ mobile networks, usually while
travelling abroad.
|
|
Service
revenue
|
Service
revenue is all revenue related to the provision of ongoing services
to the Group’s consumer and enterprise customers, together
with roaming revenue, revenue from incoming and outgoing network
usage by non-Vodafone customers and interconnect charges for
incoming calls.
|
|
Vodafone
Business
|
Vodafone
Business supports organisations in a digital world. With
Vodafone’s expertise in connectivity, our leading IoT
platform and our global scale, we deliver the results that
organisations need to progress and thrive. We support businesses of
all sizes and sectors.
|
1.
References to
Vodafone are to Vodafone Group Plc and references to Vodafone Group
are to Vodafone Group Plc and its subsidiaries unless otherwise
stated. Vodafone, the Vodafone Speech Mark Devices, Vodacom and
Together we can are trade marks owned by Vodafone. Other product
and company names mentioned herein may be the trade marks of their
respective owners.
2.
All growth rates
reflect a comparison to the quarter ended 30 June 2023 unless
otherwise stated.
3.
References to
“Q1”, “Q2”, “Q3” and
“Q4” are to the three months ended 30 June, 30
September, 31 December and 31 March. References to the
“year”, “financial year” or
“FY25” are to the financial year ending 31 March 2025.
References to “last year”, “last financial
year” or “FY24” are to the financial year ended
31 March 2024.
4.
Vodacom refers to
the Group’s interest in Vodacom Group Limited
(‘Vodacom’) as well as its operations, including
subsidiaries in South Africa, Egypt, DRC, Tanzania, Mozambique and
Lesotho.
5.
This document
contains references to our and our affiliates’ websites.
Information on any website is not incorporated into this update and
should not be considered part of this update.
|
Forward-looking statements and other matters
|
|
|
|
|
This
document contains ‘forward-looking statements’ within
the meaning of the US Private Securities Litigation Reform Act of
1995 with respect to the Group’s financial condition, results
of operations and businesses and certain of the Group’s plans
and objectives. In particular, such forward-looking statements
include, but are not limited to, statements with respect to: the
Group’s portfolio transformation plan; expectations regarding
the Group’s financial condition or results of operations and
the guidance for Adjusted EBITDAaL and Adjusted free cash flow for
the financial year ending 31 March 2025; the announced agreement to
combine Vodafone UK and Three UK; the mobile network sharing
agreement with Virgin Media O2; the announced agreement to dispose
of Vodafone Italy; changes to German TV laws and the migration of
users to individual TV customer contracts; expectations for the
Group’s future performance generally; the Group’s share
buyback programme; expectations regarding the operating environment
and market conditions and trends, including customer usage,
competitive position and macroeconomic pressures, price trends and
opportunities in specific geographic markets; intentions and
expectations regarding the development, launch and expansion of
products, services and technologies, either introduced by Vodafone
or by Vodafone in conjunction with third parties or by third
parties independently; expectations regarding the integration or
performance of current and future investments, associates, joint
ventures, non-controlled interests and newly acquired businesses;
the impact of regulatory and legal proceedings involving the Group
and of scheduled or potential regulatory changes; certain of the
Group’s plans and objectives, including the Group’s
strategy.
Forward-looking
statements are sometimes but not always identified by their use of
a date in the future or such words as ‘will’,
‘may’, ‘expects’, 'believes',
‘continue’, ‘intends’, ‘plans’,
‘further’, ‘ongoing’,
‘anticipates’, or ‘could’. By their nature,
forward-looking statements are inherently predictive, speculative
and involve risk and uncertainty because they relate to events and
depend on circumstances that will occur in the future. There are a
number of factors that could cause actual results and developments
to differ materially from those expressed or implied by these
forward-looking statements. These factors include, but are not
limited to the following: general economic and political conditions
in the jurisdictions in which the Group operates and changes to the
associated legal, regulatory and tax environments; increased
competition; levels of investment in network capacity and the
Group’s ability to deploy new technologies, products and
services, including artificial intelligence; the Group’s
ability to optimise its portfolio in line with its business
transformation plan; evolving cyber threats to the Group’s
services and confidential data; rapid changes to existing products
and services and the inability of new products and services to
perform in accordance with expectations; the ability of the Group
to integrate new technologies, products and services with existing
networks, technologies, products and services; the Group’s
ability to generate and grow revenue; slower than expected impact
of new or existing products, services or technologies on the
Group’s future revenue, cost structure and capital
expenditure outlays; slower than expected customer growth, reduced
customer retention, reductions or changes in customer spending and
increased pricing pressure; the Group’s ability to extend and
expand its spectrum resources, to support ongoing growth in
customer demand for mobile data services; the Group’s ability
to secure the timely delivery of high-quality products from
suppliers; loss of suppliers, disruption of supply chains,
shortages and greater than anticipated prices of new mobile
handsets; changes in the costs to the Group of, or the rates the
Group may charge for, terminations and roaming minutes; the impact
of a failure or significant interruption to the Group’s
telecommunications, data centres, networks, IT systems or data
protection systems; the Group’s ability to realise expected
benefits from acquisitions, partnerships, joint ventures,
associates, franchises, brand licences, platform sharing or other
arrangements with third parties, including the signed agreement to
combine Vodafone’s UK business with Three UK, the mobile
network sharing agreement with Virgin Media O2 and the
Group’s strategic partnership with Microsoft; acquisitions
and divestments of Group businesses and assets and the pursuit of
new, unexpected strategic opportunities; the Group’s ability
to integrate acquired business or assets; the extent of any future
write-downs or impairment charges on the Group’s assets, or
restructuring charges incurred as a result of an acquisition or
disposition; developments in the Group’s financial condition,
earnings and distributable funds and other factors that the Board
takes into account in determining the level of dividends; the
Group’s ability to satisfy working capital requirements;
changes in foreign exchange rates; changes in the regulatory
framework in which the Group operates; the impact of legal or other
proceedings against the Group or other companies in the
communications industry; and changes in statutory tax rates and
profit mix, including the disposal of Vodafone Italy.
A
review of the reasons why actual results and developments may
differ materially from the expectations disclosed or implied within
forward-looking statements can be found in the summary of our
principal risks in the Group’s Annual Report for the year
ended 31 March 2024. The Annual Report can be found on the Vodafone
Group’s website (http://investors.vodafone.com/results).
All subsequent written or oral forward-looking statements
attributable to Vodafone or any member of the Vodafone Group or any
persons acting on their behalf are expressly qualified in their
entirety by the factors referred to above. No assurances can be
given that the forward-looking statements in this document will be
realised. Subject to compliance with applicable law and
regulations, Vodafone does not intend to update these
forward-looking statements and does not undertake any obligation to
do so.
Copyright © Vodafone Group 2024
-End-
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorised.
|
|
VODAFONE
GROUP
|
|
|
PUBLIC
LIMITED COMPANY
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
Date:
July 25, 2024
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By: /s/ M D B
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Name: Maaike de Bie
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Title: Group General Counsel and Company Secretary
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Vodafone (PK) (USOTC:VODPF)
Gráfica de Acción Histórica
De Jun 2024 a Jul 2024
Vodafone (PK) (USOTC:VODPF)
Gráfica de Acción Histórica
De Jul 2023 a Jul 2024
