Vodafone Group (VOD) Q3 2025 earnings summary

Executive summary

• Group Q3 FY25 service revenue grew 5.2% year-over-year, with adjusted EBITDAaL up 2.2%, driven by strong UK, Türkiye, and Africa performance, while Germany faced declines due to TV law changes and competitive pressures.

• Portfolio reshaping is nearly complete, highlighted by the €8 billion sale of Italy and regulatory approval for the UK merger with Three, with major restructuring steps finalized.

• UK operations achieved record Net Promoter Scores, led the market in all consumer segments, and saw highest-ever broadband net additions.

• Customer trends in Germany are improving despite challenging market conditions; UK and Africa saw robust customer and revenue growth.

• FY25 financial guidance reiterated, with adjusted EBITDAaL c. €11bn and adjusted FCF at least €2.4bn.

Financial highlights

• Group Q3 service revenue +5.2% year-over-year; adjusted EBITDAaL +2.2% to €2.8bn; margin at 29.9%.

• Türkiye contributed significantly, accounting for about 90% of group service revenue growth in euro terms, with organic service revenue up 83.4%.

• Germany experienced a 6.4% decline in service revenue, mainly due to TV law changes, lower ARPU, and B2B project delays.

• Group total revenue rose 5.0% year-over-year to €9.8 billion in Q3 FY25.

• Operating profit fell 18.4% to €1.0 billion compared to Q3 FY24.

Outlook and guidance

• FY25 guidance maintained: adjusted EBITDAaL c. €11bn, adjusted FCF at least €2.4bn, with expectations for continued group performance despite headwinds in Germany.

• Guidance excludes Vodafone Spain & Italy and hyperinflationary impact in Türkiye.

• H2 EBITDA in Germany expected to be lower than H1 due to MDU transition, competitive mobile market, and one-off items.

• Ambition remains to return Germany to growth in FY26, with MDU drag ending and wholesale revenue ramp-up as key factors.

• Free cash flow expected to grow midterm, despite short-term dilution from the UK merger.