5 February 2024
Sustained revenue growth in Europe & Africa
Margherita Della Valle, Vodafone Group Chief Executive, commented:
“We maintained good service revenue momentum in the third quarter across both Europe and Africa, supported by a further acceleration of Vodafone Business, with our Cloud and Internet of Things services growing over 20%.
We’ve made good strategic progress in the first nine months of the year, with improving customer satisfaction and three consecutive quarters of service revenue growth in Europe. Our announced transactions in the UK and Spain are progressing well, and we are in active discussions in Italy. We’ve also begun strategic partnerships with Microsoft and Accenture to fast-track our transformation.”
| Q3 performance summary | Q3 FY24 | Q3 FY23 | Reported | Organic | |
| €m | €m | growth % | growth % 1 | ||
| Service revenue | 9,383 | 9,520 | (1.4) | 4.7* | |
| – of which Germany | 2,892 | 2,882 | 0.3 | 0.3* | |
| Other revenue | 1,989 | 2,118 | |||
| Total revenue | 11,372 | 11,638 | (2.3) | 4.2* | |
| * represents organic growth. See page 2. ǀ 1. Non-GAAP measure. See page 8. | |||||
· Group service revenue growth of 4.7%* (Q2: 4.7%*), or 2.5%* (Q2: 2.8%*) excluding Turkey
· Broad-based service revenue growth with 14 out of 17 markets growing
· Germany service revenue growth of 0.3%* (Q2: 1.1%*), reflecting Business phasing and non-recurring revenue from service providers in Q2
· Vodafone Business: service revenue growth accelerated to 5.0%* (Q2: 4.3%*) driven by strong performance in digital services
· Vodacom service revenue growth of 8.8%* (Q2: 9.0%*), with improved trend in international markets and Egypt
· FY24 guidance1,2 re-iterated: Adjusted EBITDAaL c.€13.3 billion and Adjusted free cash flow of c.€3.3 billion
Notes:
1. The FY24 guidance foreign exchange rates were: €1 : GBP 0.88, €1 : ZAR 19.30, €1 : TRY 21.10, €1 : EGP 33.38.
2. Guidance for FY24 includes Adjusted EBITDAaL and Adjusted free cash flow for Vodafone Spain for the 12 months ending 31 March 2024.
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A webcast Q&A session will be held at 10:00 GMT on 5 February 2024. The webcast and supporting information can be accessed at investors.vodafone.com