1 February 2023
Europe slowing as expected, resilient performance in Africa
· Group service revenue growth of 1.8%* (Q2: 2.5%*), with the slowdown in quarterly trend driven by Europe
· In Europe, declines in Germany, Italy and Spain partially offset by good growth in UK and Other Europe. Quarterly trend impacted by lower roaming growth and phasing of Business revenue in FY22
· Portfolio progress: Vantage Towers strategic co-control partnership progressing towards completion, Vodafone Hungary disposal completed, transfer of Vodafone Egypt to Vodacom completed
| Q3 performance summary | Q3 FY23 | Q3 FY22 | Reported | Organic | |
| €m | €m | growth % | growth % 1 | ||
| Service revenue | 9,520 | 9,647 | (1.3) | 1.8* | |
| – of which Germany | 2,882 | 2,936 | (1.8) | (1.8)* | |
| Other revenue | 2,118 | 2,037 | |||
| Total revenue | 11,638 | 11,684 | (0.4) | 2.7* | |
| * represents organic growth. See page 2. ǀ 1. Non-GAAP measure. See page 7. | |||||
· Service revenue in Turkey increased by 52.9%* (Q2: 43.9%*), driven by high inflation. Group service revenue growth excluding Turkey was 0.5%* (Q2: 1.4%*)
· Broadening price actions across Europe, with 8 markets now operating inflation-linked pricing models
· Vodafone Business service revenue growth of 2.4%* (Q2: 3.4%*), driven by digital services
· Growth in Africa driven by data and financial services. We now have 73.5 million financial services customers in Africa (including Safaricom)
· Continuing to target updated FY23 guidance: Adjusted EBITDAaL €15.0 – 15.2 billion and Adjusted FCF c.€5.1 billion
Margherita Della Valle, Group Chief Executive, commented:
“Although we’re continuing to target our financial guidance for the year, the recent decline in revenue in Europe shows we can do better. We need to do more for our customers by delivering quality connectivity in an easy way. We’ve already taken action, including simplifying our structure to give local markets full autonomy and accountability to make the best commercial decisions for their customers. In addition, we now have initiatives underway to generate around half of our €1 billion cost savings target. There is more to do and our focus is to provide a better service to our customers, become a simpler business and deliver growth.”
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A webcast Q&A session will be held at 10:00 GMT on 1 February 2023. The webcast and supporting information can be accessed at investors.vodafone.com