Vodafone’s total revenue increased by 2.8 per cent to €9 billion for Q1 FY25 as higher organic service revenue was partially offset by adverse foreign exchange movements.
The company said in a trading update that its operating profit had also climbed 42.9 per cent to €1.5 billion, primarily driven by a €700 million gain on the disposal of an 18 per cent stake in Indus Towers.
Additionally, group service revenue grew by 5.4 per cent, as did Vodafone Business’ service revenue, which was up 2.6 per cent.
In the UK, total revenue rose by 0.3 per cent to €1.7 billion as higher service revenue and an appreciation of the pound sterling against the euro were offset by lower equipment revenue.
Service revenue in the UK also advanced 2 per cent, while Vodafone Business service revenue declined 1.1 per cent.
The group’s adjusted EBITDAaL also increased 5.1 per cent, with an acceleration in growth driven by lower cost inflation and the phasing of operational expenditure.
Margherita Della Valle, group chief executive of Vodafone, said, “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 per cent, 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 per cent 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.”