Half Year 2026 Vodafone Group PLC Earnings Call Transcript
Key Points
- Vodafone Group PLC (VOD) completed the merger of Vodafone and Three in the UK and acquired Telecom Romania's assets, strengthening its market position.
- The company reported a 5.8% growth in group service revenue in Q2, with strong performance across Europe and Africa.
- EBITDAaL grew by 6.8% in the first half, with nearly all markets posting growth, indicating solid financial performance.
- Vodafone's 5G network in Germany covers over 90% of the population, serving over 40 million customers, showcasing significant infrastructure investment.
- The company announced a progressive dividend policy, aiming for consistent dividend growth, starting with a 2.5% increase this year.
- Despite strong first-half performance, Vodafone's guidance implies a slowdown in EBITDA growth in the second half of the year.
- Germany's revenue trends, excluding wholesale impacts, are still declining by 2% to 3%, indicating underlying challenges.
- Emerging markets growth contribution is expected to trend down as inflation moderates, potentially impacting future growth.
- The UK market faces tough comparisons in B2B business, which may dampen performance in the short term.
- Potential legislative changes in Germany could impact Vodafone's fiber deployment strategy, although the exact effects remain uncertain.
Good morning everyone, and thank you for joining us today. Before moving to Q&A, I will briefly provide an update on our transformation progress and financial performance. I want to specifically talk you through our operational execution in the first half in Germany and the UK.
In Germany, our turnaround continues, and in the UK we are now driving the integration of Vodafone and Three, both of which remain top priorities. But first, a quick recap on our position as a group. As over the past 2.5 years we have changed both where we operate and how we operate.
In the last six months we have completed the reshaping of the group that I announced in May 23. We have completed the merger of Vodafone and Three in the UK and the acquisition of Telecom Romania's assets.
All of Vodafone's operations are now in a strong position at scale in all our markets, and importantly, all these markets have sustainable structures. Our capital structure has also been reset with appropriate investment levels, a stronger
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