Vodafone Group Plc ⫶ H1 FY23 results
15 November 2022
Resilient performance in Europe & Africa, good progress on operational & portfolio priorities
· Group service revenue growth of 2.5%* in the first half of FY23
· Adjusted EBITDAaL declined by 2.6%* driven by a material prior year legal settlement, and commercial underperformance in Germany
· Pre-tax return on capital employed increased by 0.6 percentage points year-on-year to 6.9%
· Significant progress with portfolio strategy to create industrial scale, enable accelerated growth and unlock value
| Financial results | H1 FY23 | H1 FY22 | Change | ||
| Page | €m | €m | % | ||
| Group revenue | 6 | 22,930 | 22,489 | 2.0 | |
| Group service revenue | 6 | 19,207 | 19,010 | 2.5* | |
| Operating profit | 6 | 2,935 | 2,620 | 12.0 | |
| Adjusted EBITDAaL1 | 6 | 7,244 | 7,565 | (2.6)* | |
| Profit for the financial period | 6 | 1,243 | 1,277 | ||
| Basic earnings per share | 17 | 3.52c | 3.40c | ||
| Adjusted basic earnings per share1 | 17 | 6.02c | 4.90c | ||
| Interim dividend per share | 35 | 4.50c | 4.50c | ||
| Cash inflow from operating activities | 17 | 6,280 | 6,455 | (2.7) | |
| Adjusted free cash flow1 | 18 | (513) | 23 | ||
| Net debt1 | 19 | (45,523) | (44,298) | (2.8) | |
| * represents organic growth. See page 2. ǀ 1. Non-GAAP measure. See page 41. |
· Group revenue growth of 2.0% to €22.9 billion, driven by service revenue growth and higher equipment sales
· Operating profit increased by 12.0% to €2.9 billion, reflecting a higher share of income from associates and joint ventures and lower depreciation and amortisation
· FY23 Adjusted EBITDAaL is expected to be €15.0 – 15.2 billion at the lower end of original guidance
· Interim dividend per share of 4.5 eurocents, record date 25 November 2022
Nick Read, Group Chief Executive, commented:
“In the context of a challenging macroeconomic environment, we are delivering a resilient performance this year, alongside making good progress with our operational and portfolio priorities.
We are pleased the Vantage Towers transaction accomplished our three key objectives – monetisation, deconsolidation and retaining co-control of these strategically important assets – and we continue to deliver portfolio actions to strengthen our businesses and accelerate growth. In addition, our recently announced fibre-to-the-home JV in Germany will further enhance our leading gigabit fixed network position in Europe’s largest market.
We are taking a number of steps to mitigate the economic backdrop of high energy costs and rising inflation. These include taking pricing action across Europe, whilst at the same time supporting our most vulnerable customers and driving energy efficiency measures across the business. We are also announcing today a new cost savings target of €1+ billion focused on streamlining and further simplifying the Group.
We are confident that the ongoing delivery of our organic strategy and portfolio actions will underpin long-term growth and create value for shareholders.”
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A webcast Q&A session will be held at 10:00 GMT on 15 November 2022. The webcast and supporting information can be accessed at investors.vodafone.com