Vodafone Group (VOD) Q2 2025 Pre Recorded earnings summary

Executive summary

• H1 results met expectations, with ongoing portfolio and operational transformation, especially in B2B and digital services.

• Service revenue grew 4.8% organically, and Adjusted EBITDA/EBITDAaL rose 3.8% organically, with strong performances in Africa, Turkey, and Other Europe, offsetting Germany's decline.

• Major portfolio reshaping is nearing completion, including the completed sale of Vodafone Spain and the announced sale of Vodafone Italy, both reported as discontinued operations.

• Strategic partnerships expanded, including a new API alliance and collaboration with Google.

• Share buybacks and a rebased dividend policy were implemented, with a new leverage target and capital allocation strategy.

Financial highlights

• Total revenue increased by 1.6% to €18.3bn in H1 FY25 compared to H1 FY24.

• Adjusted EBITDA/EBITDAaL grew 3.8% organically at the group level in H1.

• Operating profit rose 28.3% to €2.4bn, mainly due to a €0.7bn gain from the Indus Towers stake sale.

• Basic EPS from continuing operations was 3.92 eurocents, up from a loss of 0.40 eurocents in H1 FY24; adjusted basic EPS was 4.84 eurocents, up from 3.72 eurocents.

• Adjusted free cash flow outflow improved to €950m from €1.4bn in the prior year.

Outlook and guidance

• FY25 guidance reiterated: Adjusted EBITDAaL of approximately €11bn and adjusted free cash flow of at least €2.4bn.

• Dividend rebased to 4.5 eurocents per share for FY25, with an interim dividend of 2.25 eurocents declared.

• Further share buybacks of up to €2bn anticipated after the Vodafone Italy sale completes.

• Further acceleration in B2B growth is expected in the second half.

• Focus remains on operational performance in Germany and long-term sustainable growth.