Vodafone Group PLC   

Vodafone Group PLC (LSE: VOD) is an FTSE 100 index-listed provider of telecommunications services. It offers voice, messaging, and data services across fixed and mobile networks.

Q3 FY25 Trading Update (Released on 05 February 2025)

1. Strong Revenue Growth Despite Challenges: Group service revenue increased by 5.6% to €7.9 billion in Q3 FY25, with organic growth accelerating to 5.2% (Q2: 4.2%). The UK and Africa drove growth, while Germany faced headwinds due to the TV law change. Türkiye posted a strong 53.1% increase in euro terms (excluding hyperinflation).

2. Resilient Total Revenue Performance: Total revenue rose 5.0% to €9.8 billion in Q3 FY25, reflecting broad-based growth across most markets. The UK saw a 7.6% increase, supported by consumer demand and improved customer experience. Africa’s revenue surged 11.6%, benefiting from increased data consumption and price adjustments.

3. Portfolio Transformation Completed: Vodafone sold its Italy operations for €8 billion, strengthening its balance sheet and enabling up to €2.0 billion in share buybacks. The UK merger with Three received regulatory approval and is set to close in the coming months, creating a stronger €11 billion 5G network investment plan.

4. Steady Profitability with EBITDA Growth: Adjusted EBITDAaL increased by 2.2% to €2.8 billion in Q3 FY25, driven by revenue growth and lower energy costs. However, the 28.8% EBITDAaL margin declined slightly year-over-year due to Germany’s market conditions. Year-to-date EBITDAaL grew 3.2% to €8.2 billion.

5. Shareholder Returns and Financial Guidance Reaffirmed: Vodafone completed €1.5 billion in share buybacks, with a final €0.5 billion tranche now commencing. The company reiterated its FY25 guidance, targeting €11 billion in Adjusted EBITDAaL and at least €2.4 billion in free cash flow, highlighting its confidence in long-term

Share Price Chart

Markets are trading in a highly volatile zone currently due to certain macroeconomic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Vodafone Group PLC (LSE: VOD) was trading at the current market price of GBX 66.38 (as of 14 February 2025, 09:35 AM GMT) 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is 14 February 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Note 4: Dividend Yield may vary as per the stock price movement.