Vodafone (VOD) Q1 2027 earnings summary

Executive summary

• Group service revenue grew 5.2% year-over-year, with all segments and geographies contributing positively.

• Total revenue increased 9.7% to €10.3 billion, driven by service revenue and Three UK consolidation.

• Adjusted EBITDAAL rose 6.2% organically, with margin improving to 28.5%.

• Double-digit service revenue growth in Africa, led by Vodacom and financial services expansion.

• Safaricom transaction closed and consolidated, contributing a €3.0 billion gain.

Financial highlights

• Service revenue reached €8.6 billion, up 9.8% year-over-year; organic growth was 5.2%.

• Group Adjusted EBITDAAL grew 6.2% year-over-year, margin improved 0.6pp to 28.5%.

• Adjusted EBITDAAL guidance for FY27 raised to €13.0–13.3bn; adjusted free cash flow guidance €2.6–2.9bn.

• Germany Q1 service revenue up 1.2%, UK up 0.6%, Vodacom up 12.6%, and financial services up 27.1%.

• Türkiye and Egypt posted strong euro-denominated growth at 8.3% and 25.3%, respectively.

Outlook and guidance

• Expecting to deliver at the upper end of updated FY27 guidance ranges, including Safaricom impact.

• Europe FY27 Adjusted EBITDAAL expected at €7.6–7.9bn.

• Restructuring and integration costs to peak at €0.7bn in FY27, with €0.4bn related to UK integration.

• Targeting double-digit organic growth in adjusted free cash flow and maintaining capital intensity at 18%.