Vodafone Group Plc (LSE:VOD) raised its full-year guidance on Tuesday following a stronger-than-expected first-half performance for fiscal 2026, driven by growth in the UK, Türkiye, and Africa, along with the successful completion of its merger with Three UK.

Total revenue rose 7.3% year-on-year to €19.6 billion for the six months ended September 30, 2025, compared with €18.3 billion a year earlier. Service revenue increased 8.1% to €16.3 billion on a reported basis (up 5.7% organically), while adjusted EBITDAaL climbed 5.9% to €5.7 billion. Operating profit fell 9.2% to €2.2 billion, reflecting higher depreciation and amortization following the consolidation of Three UK.

Chief Executive Margherita Della Valle said: “Based on our stronger performance, we are now expecting to deliver at the upper end of our guidance range for both profit and cash flow, and as our anticipated multi-year growth trajectory is now under way.”

Vodafone now expects adjusted EBITDAaL between €13.3 billion and €13.6 billion and adjusted free cash flow between €2.4 billion and €2.6 billion for the full year. The company also introduced a new dividend policy, planning to raise its FY26 dividend per share by 2.5%, with an interim dividend of 2.25 eurocents (ex-dividend November 20, payable February 7, 2026).

Regional performance was led by robust growth in multiple markets:

• Germany, accounting for one-third of group service revenue, returned to growth in Q2 with a 0.5% rise in service revenue.
• UK service revenue increased 1.2% organically, while total revenue surged 27.9% to €4.4 billion following the merger with Three UK.
• Africa delivered 13.5% organic service revenue growth in Q2, supported by strong data and mobile financial service demand.
• Türkiye posted standout growth, with service revenue up 55.6% organically and total revenue up 15.1% to €1.6 billion.

By segment, adjusted EBITDAaL rose 11% to €1.3 billion in Africa (margin 34.1%), 58% in Türkiye to €485 million, and 25% in the UK to €884 million. In contrast, Germany’s EBITDAaL declined 4.3% to €2.2 billion due to lower TV revenue and prior-year investments.

Cash flow from operating activities fell 9.8% to €5.1 billion, while adjusted free cash flow showed an outflow of €583 million, improving from the prior year. Net debt increased to €25.9 billion from €22.4 billion at March 31, reflecting merger-related costs, €1 billion in share buybacks, and €0.6 billion in dividends.

Since May 2023, Vodafone has executed €3 billion in share buybacks and launched a €500 million tranche concurrent with its results. Strategic progress also included the acquisition of Telekom Romania Mobile Communications S.A. for €30 million and an agreement to acquire German cloud and cybersecurity firm Skaylink GmbH for €175 million.

Commenting on the company’s performance, Della Valle added: “Following the progress of our transformation, Vodafone has built broad-based momentum. Whilst we have more to do, we delivered good strategic progress in the half year.”

More about Vodafone Group Plc

Vodafone Group Plc is a global telecommunications company headquartered in the UK, operating mobile and fixed networks across Europe and Africa. The company provides mobile, broadband, and digital financial services to over 300 million customers worldwide. Listed on the London Stock Exchange and part of the FTSE 100, Vodafone continues to focus on operational simplification, 5G expansion, and digital transformation to drive long-term shareholder value.

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