Vodafone Q1 Revenue Rises 2.1% to €9.5B

TL;DR

Vodafone's Q1 revenue hit €9.5B, up 2.1%, guidance confirmed. Looks solid.

AI Summary

Vodafone Group Plc released a Q1 FY25 trading update on July 25, 2024. The company reported a 2.1% increase in total revenue to €9.5 billion for the quarter ending June 30, 2024. Vodafone highlighted growth in its European markets, particularly Germany, and confirmed its full-year financial guidance.

Why It Matters

This update provides insight into Vodafone's current financial performance and its ability to meet its financial targets for the fiscal year, impacting investor confidence and stock valuation.

Risk Assessment

Risk Level: low — The filing is a routine trading update that confirms previously issued financial guidance, indicating no new significant negative developments.

Key Numbers

• €9.5B — Q1 FY25 Total Revenue (Represents a 2.1% increase year-on-year.)
• 2.1% — Q1 FY25 Revenue Growth (Indicates positive top-line performance.)

Key Players & Entities

• Vodafone Group Plc (company) — Registrant
• €9.5 billion (dollar_amount) — Q1 FY25 total revenue
• July 25, 2024 (date) — Filing date
• June 30, 2024 (date) — End of Q1 FY25

FAQ

Filing Documents

• a7331xvodafonegroupplc.htm (6-K) — 382KB
• 0001654954-24-009366.txt ( ) — 383KB

From the Filing

Q1 FY25 TRADING UPDATE a7331xvodafonegroupplc     UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549   Form 6-K   REPORT OF FOREIGN PRIVATE ISSUER   PURSUANT TO RULES 13a-16 OR 15d-16 UNDER THE SECURITIES EXCHANGE ACT OF 1934   Dated July 25, 2024   Commission File Number: 001-10086   VODAFONE GROUP PUBLIC LIMITED COMPANY (Translation of registrant’s name into English)     VODAFONE HOUSE, THE CONNECTION, NEWBURY, BERKSHIRE, RG14 2FN, ENGLAND (Address of principal executive offices)   Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.   Form 20-F ✓ Form 40-F _     This Report on Form 6-K contains a Stock Exchange Announcement dated 25 July 2024 entitled ‘Vodafone Q1 FY25 Trading Update’.       Vodafone Group Plc Q1 FY25 Trading Update 25 July 2024         “Our performance in the first quarter is consistent with our full year guidance, which we reiterate today. We continue to deliver strong revenue growth in Africa and Turkey, whilst lower inflation is slowing revenue growth in Europe and accelerating Group EBITDAaL growth. Service revenue for the Group grew 5.4%, although in Germany we saw an expected service revenue decline, following the ongoing impact of the TV law change.   During the last few months, we have announced the final step in reducing our stake in Vantage Towers to 50% for €1.3 billion and commenced our €2 billion share buyback programme following the sale of Spain. We continue to progress our transactions in Italy and the UK as well as the broader transformation of Vodafone, focused on customer experience, Business growth and operational execution in Germany. The actions we are taking now will deliver improved performance and underpin the turnaround of Vodafone.”   Margherita Della Valle Group Chief Executive     Financial summary Q1 FY25 Q1 FY24 Reported Organic €m  €m  change % change % 1 Service revenue 7,465 7,235 3.2  5.4  Other revenue 1,571 1,558 0.8    Total revenue 9,036 8,793 2.8    Adjusted EBITDAaL 1 2,681 2,626 2.1  5.1  Adjusted EBITDAaL margin 1 29.7% 29.9%     Operating profit 1,545 1,081 42.9    1. Non-GAAP measure. See page 7. ǀ 2. The FY25 guidance foreign exchange rates were: €1 : GBP 0.86, €1 : ZAR 20.58, €1 : TRY 34.98, €1 : EGP 51.75.     Reported measures   - Total revenue increased by 2.8% (Q4: 2.8%) to €9.0 billion as higher organic service revenue was partially offset by adverse foreign exchange movements   - Operating profit increased by 42.9% to €1.5 billion, primarily driven by a €0.7 billion gain on the disposal of an 18% stake in Indus Towers, leaving Vodafone with a 3.1% shareholding     Organic and Adjusted measures   - Group service revenue grew by 5.4% (Q4: 7.1%), with continuing strong growth in Turkey and Africa   - Service revenue in Germany decreased by 1.5% (Q4: +0.6%) primarily due to the impact of the MDU TV law change. Excluding this impact, service revenue in Germany declined by 0.3%, primarily due to the lapping of prior year price increases and project phasing in Business   - Vodafone Business service revenue grew by 2.6% (Q4: 5.4%), with project phasing in Germany and Other Europe impacting trends. However, we expect this to normalise throughout the rest of FY25   - Service revenue growth in Africa remained strong at 10.0% (Q4: 10.0%), supported   by price increases in South Africa and continued good commercial momentum in Egypt   - Adjusted EBITDAaL increased by 5.1%, with an acceleration in growth driven by lower cost inflation and the phasing of operational expenditure. The Adjusted EBITDAaL margin was 0.1 percentage points higher year-on-year on an organic basis at 29.7%   - In July, we announced the sale of a further 10% stake in Oak Holdings GmbH, the partnership that co-controls Vantage Towers, for €1.3 billion, achieving the 50:50 joint ownership structure as planned   - Initial €500 million tranche of share buybacks almost complete. Second tranche commencing shortly   - FY25 guidance re-iterated 2 : Adjusted EBITDAaL of c.€11 billion and Adjusted free cash flow to be at least €2.4 billion   For more information, please contact:   Investor Relations: Investors.vodafone.com ir@vodafone.co.uk Media Relations: Vodafone.com/media/contact GroupMedia@vodafone.com &

View Full Filing

View this 6-K filing on SEC EDGAR