Highlights:

  • Total revenue rose 7.3% to €19.6 billion, with organic service revenue up 5.7%.
  • Adjusted EBITDAaL increased 6.8% organically to €5.7 billion, while operating profit decreased to €2.2 billion.
  • Shareholder returns include €3.0 billion of buybacks completed, a €1.0 billion remaining program, and a 2.5% increase in FY26 dividend per share.

Vodafone Group Plc (LSE:VOD) has announced its results for the first half of fiscal year 2026, reporting total revenue of €19.6 billion, up 7.3% from €18.3 billion in H1 FY25. Service revenue grew 8.1% on a reported basis, supported by consolidation of Three UK and continued growth across Europe and Africa. Vodafone confirmed it expects to deliver the upper end of FY26 guidance, with adjusted EBITDAaL projected at €11.3–11.6 billion and adjusted free cash flow of €2.4–2.6 billion.

Revenue and Service Performance

Total revenue increased to €19.6 billion in H1 FY26, driven by service revenue growth and the integration of Three UK, partially offset by foreign exchange effects. Reported service revenue rose 8.1% to €16.3 billion, with organic growth of 5.7%.

Regional performance highlights included:

  • Germany: Returned to growth in Q2 (+0.5%) following the conclusion of the TV law change impact and higher wholesale revenue.
  • UK: Organic growth of 1.2% in Q2, with early integration of VodafoneThree contributing to commercial momentum.
  • Africa: Continued double-digit organic service revenue growth (Q2: 13.5%), driven by Egypt and Vodacom international markets, with favourable demand for data and financial services.
  • Business: Organic service revenue grew 2.9% in Q2, supported by demand for digital services.

Profitability and Cash Flow

Adjusted EBITDAaL reached €5.7 billion, up 5.9% on a reported basis and 6.8% on an organic basis. Growth was partially offset by the final effects of Germany’s TV law and ongoing commercial investments. Operating profit decreased 9.2% to €2.2 billion due to higher depreciation and amortisation from the Three UK consolidation and lower other income.

Shareholder returns included €3.0 billion in share buybacks since May 2024, with a further €1.0 billion planned. The next €500 million tranche of buybacks commenced today. Vodafone also announced a progressive dividend policy, with the FY26 dividend per share expected to increase by 2.5%, reflecting anticipated growth in adjusted free cash flow.

Operational Highlights

Vodafone’s integration of VodafoneThree progressed rapidly, delivering immediate network improvements. The customer service initiative ‘Ask Once’ has been implemented in three markets, with leading Net Promoter Score positions in 11 markets.

The AI virtual assistant, SuperTobi, is now active across all European markets, achieving a 70% end-to-end resolution rate. Digital services in the Business segment grew 12.2% in Q2, while financial services revenue in Africa increased 21.8%, reflecting continuing demand for mobile and digital solutions.

Outlook

Vodafone confirmed it expects to deliver the upper end of FY26 guidance, with adjusted EBITDAaL of €11.3–11.6 billion and adjusted free cash flow of €2.4–2.6 billion. The company maintains a focus on integration, digital service growth, and customer experience improvements across all markets.