Vodafone, revenues down: 'But growing after latest transactions'

In the 2023-24 financial year, Vodafone Group revenue decreased by 2.5% to EUR 36.7 billion due to the divestments of Vantage Towers, Vodafone Hungary and Vodafone Ghana in the previous financial year and adverse exchange rate movements. The drop in operating profit of 74.6% to EUR 3.7 billion mainly reflected the business disposals in the previous financial year, in particular the EUR 8.6 billion gain from the sale of Vantage Towers. Basic eps (earnings per share, ed) fell from 43.66 cents to 4.45. The adjusted basic eps fell to 7.47 cents from 11.28.

Group service revenues increased by 6.3%, with Europe, Africa and Business growing. Germany returned to growth with service revenues up 0.2% for the full year and 0.6% for the fourth quarter, however adjusted. Ebitda after leasing remained under pressure, down 5.8% due to higher energy and other inflationary costs. Adjusted ebitdaaL increased 2.2% as good progress in service revenues was partially offset by higher energy costs and other inflationary impacts

The group achieved its guidance for fiscal year 2024 on adjusted EbitdaaL and adjusted free cash flow. For the financial year 2024-25

Vodafone estimates an adjusted EbitdaaL of around EUR 11 billion and an adjusted free cash flow of at least EUR 2.4 billion.

In the financial year 2024 Vodafone 'performed slightly above expectations, with good organic service revenue growth of 6.3% and organic EbitdaaL growth of 2.2%. Our Business division, a key growth engine, posted revenue growth of 5.4% in the fourth quarter," commented CEO Margherita Della Valle. 'For the coming year there is still much to be done. We will increase investment in customer experience, improve underlying performance in Germany and accelerate our momentum in Business as we continue to streamline our operations across the group. We are fundamentally transforming Vodafone for growth," he adds.