Vodafone (VOD) Q2 2026 Pre Recorded earnings summary

Executive summary

• Achieved strong H1 FY26 performance, with service revenue accelerating in Q2 and notable growth in the UK, Türkiye, and Africa, and a return to top-line growth in Germany.

• Completed major group reshaping, including the Vodafone and Three UK merger, forming the largest UK mobile operator, and acquisition of Telekom Romania's assets.

• Integration of Vodafone and Three UK networks commenced rapidly, delivering immediate network improvements and commercial momentum.

• Strategic focus remains on customers, simplicity, and growth, with operational progress and digital service expansion in key markets.

Financial highlights

• Total revenue rose 7.3% year-over-year to €19.6bn, driven by service revenue growth and Three UK consolidation, partially offset by FX headwinds.

• Group service revenue growth accelerated to 8.1% (€16.3bn), with 5.8% organic growth in Q2.

• Adjusted EBITDAaL grew 5.9% to €5.7bn (6.8% organic growth).

• Operating profit declined 9.2% to €2.2bn due to higher depreciation/amortisation and lower other income.

• B2B business grew 2.9% in Q2; digital services demand remains strong with double-digit growth.

Outlook and guidance

• Now expect to deliver at the upper end of FY26 guidance: Adjusted EBITDAaL €11.3–11.6bn, Adjusted free cash flow €2.4–2.6bn.

• Introduced a progressive dividend policy, targeting a 2.5% increase in FY26 dividend per share.

• Focus remains on operational turnaround in Germany and integration in the UK.