In the financial year ended 31 March
2024, in accordance with International Financial Reporting
Standards ('IFRS'), we updated our financial reporting to recognise
that Vodafone Spain and Vodafone Italy are discontinued operations.
The results of discontinued operations are
excluded from the Group's segment reporting.
Geographic performance summary
|
|
Service
revenue
|
Other
revenue
|
Total
revenue
|
|
|
|
Re-presented1
|
|
Re-presented1
|
|
Re-presented1
|
|
|
Q1 FY25
|
Q1 FY24
|
Q1 FY25
|
Q1 FY24
|
Q1 FY25
|
Q1 FY24
|
|
|
€m
|
€m
|
€m
|
€m
|
€m
|
€m
|
Germany
|
2,778
|
2,819
|
317
|
328
|
3,095
|
3,147
|
UK
|
1,429
|
1,401
|
260
|
283
|
1,689
|
1,684
|
Other Europe
|
1,180
|
1,161
|
202
|
171
|
1,382
|
1,332
|
Turkey
|
515
|
333
|
149
|
123
|
664
|
456
|
Africa
|
1,449
|
1,426
|
364
|
331
|
1,813
|
1,757
|
Common Functions
|
146
|
131
|
295
|
343
|
441
|
474
|
Eliminations
|
(32)
|
(36)
|
(16)
|
(21)
|
(48)
|
(57)
|
Group
|
7,465
|
7,235
|
1,571
|
1,558
|
9,036
|
8,793
|
Note:
1. The results for the quarter ended
30 June 2023 have been re-presented to report the results of
Vodafone Spain and Vodafone Italy as discontinued operations. The
disposal of Vodafone Spain completed on 31 May 2024.
Service revenue growth
|
FY24
|
|
FY25
|
Q1
|
Q2
|
H1
|
Q3
|
Q4
|
H2
|
Total
|
|
Q1
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
|
%
|
Germany
|
(1.3)
|
1.0
|
(0.1)
|
0.3
|
0.6
|
0.5
|
0.2
|
|
(1.5)
|
UK
|
3.0
|
5.1
|
4.1
|
5.5
|
6.8
|
6.2
|
5.1
|
|
2.0
|
Other Europe
|
(7.4)
|
(7.2)
|
(7.3)
|
(7.8)
|
0.3
|
(4.0)
|
(5.7)
|
|
1.6
|
Turkey
|
(8.5)
|
21.6
|
7.4
|
6.8
|
15.6
|
11.7
|
9.6
|
|
54.7
|
Africa
|
(14.3)
|
(14.8)
|
(14.6)
|
(7.5)
|
1.2
|
(3.4)
|
(9.2)
|
|
1.6
|
Group
|
(4.7)
|
(1.9)
|
(3.3)
|
(1.5)
|
2.9
|
0.7
|
(1.3)
|
|
3.2
|
|
|
|
|
|
|
|
|
|
|
|
Organic service revenue growth1
|
FY24
|
|
FY25
|
Q1
|
Q2
|
H1
|
Q3
|
Q4
|
H2
|
Total
|
|
Q1
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
|
%
|
Germany
|
(1.3)
|
1.1
|
(0.1)
|
0.3
|
0.6
|
0.5
|
0.2
|
|
(1.5)
|
UK
|
5.7
|
5.5
|
5.6
|
5.2
|
3.6
|
4.4
|
5.0
|
|
-
|
Other Europe
|
4.1
|
3.8
|
3.9
|
3.6
|
5.5
|
4.6
|
4.2
|
|
2.3
|
Turkey
|
74.1
|
85.0
|
79.3
|
90.4
|
105.6
|
97.8
|
88.5
|
|
91.9
|
Africa
|
9.0
|
9.0
|
9.0
|
8.8
|
10.0
|
9.4
|
9.2
|
|
10.0
|
Group
|
5.4
|
6.6
|
6.0
|
6.3
|
7.1
|
6.7
|
6.3
|
|
5.4
|
Note:
1. Non-GAAP measure. See page 7 for
more information.
Group profitability
|
|
FY24
|
|
FY25
|
|
Q1
|
Q2
|
H1
|
H2
|
Total
|
|
Q1
|
Operating profit
|
€m
|
1,081
|
776
|
1,857
|
1,808
|
3,665
|
|
1,545
|
Adjusted
EBITDAaL1
|
€m
|
2,626
|
2,801
|
5,427
|
5,592
|
11,019
|
|
2,681
|
Adjusted EBITDAaL
margin1
|
%
|
29.9
|
30.5
|
30.2
|
29.8
|
30.0
|
|
29.7
|
Organic Adjusted EBITDAaL
growth1
|
%
|
|
|
3.3
|
1.2
|
2.2
|
|
5.1
|
Note:
1. Non-GAAP measure. See page 7 for
more information.
Germany ⫶ Growth impacted by MDU
transition
|
|
|
|
|
|
|
37% of Group service
revenue
|
Q1 FY25
|
Q1 FY24
|
Reported
|
Organic
|
|
€m
|
€m
|
change %
|
change
%1
|
Total revenue
|
3,095
|
3,147
|
(1.7)
|
|
- Service revenue
|
2,778
|
2,819
|
(1.5)
|
(1.5)
|
- Other revenue
|
317
|
328
|
|
|
Note:
1. Non-GAAP
measure. See page 7 for more information.
Growth
Total revenue decreased by 1.7%
driven by lower service revenue and equipment sales.
Service revenue declined by 1.5%
(Q4: +0.6%) as the cumulative impact of broadband and TV customer
losses and lower regulated rates for terminating mobile calls, was
partly offset by higher broadband ARPU. The quarter-on-quarter
slowdown was primarily driven by the lapping of prior year price
increases and Business performance. It also included a -1.2
percentage point impact (Q4: -0.9 percentage points) from the end
to bulk TV contracting in Multi Dwelling Units ('MDUs').
Fixed service revenue decreased by
2.0% (Q4: -0.2%), as the impact of a lower broadband and TV
customer base was only partly offset by broadband ARPU growth. The
MDU transition had a -2.1 percentage point impact (Q4: -1.7
percentage points) on fixed service revenue growth in Q1. Excluding
this impact, the quarter-on-quarter slowdown was primarily driven
by lower broadband ARPU growth following the introduction of price
increases in the same period last year.
Mobile service revenue declined by
0.8% (Q4: +1.8%), as the phasing of Business project revenue,
including IoT, a reduction in Consumer ARPU growth due to greater
promotional competition in Consumer low-end segment, and mobile
termination rate cuts, were partly offset by a higher contract
customer base.
Vodafone Business service revenue
decreased by 1.7% (Q4: +1.0%) as good demand for fixed services,
including cloud and security, was offset primarily by the phasing
of project work, including IoT, as well as lower mobile ARPU from
large corporate contract renewals.
Customers
In 2024, our market-leading
broadband network quality position has once again been recognised
in the latest independent network test results from Connect, CHIP
and ComputerBild. However, the impact of broadband price increases
last year continued to affect our commercial performance, with our
broadband customer base declining by 55,000 in Q1 (Q4: -62,000),
including the loss of 32,000 customers on our gigabit-capable
network.
Ahead of changes to German TV laws,
which took effect in July 2024, and changes to the practice of bulk
TV contracting in MDUs, we have continued to migrate end users to
new contracts at scale. We continue to expect to retain around 50%
of the 8.5 million MDU TV households. By the end of June 2024, we
had actively retained 2.6 million (Q4: 1.9 million) households. Our
total TV customer base declined by 0.7 million during the quarter
due to the MDU transition.
Our Consumer mobile contract
customer base declined by 9,000 in Q1, as our increased focus on
higher value branded and direct sales channels was offset by the
anticipated loss of low-margin customers through resellers'
channels. In addition, we saw 30,000 corporate account losses in
Business due to some large contract tenders in the prior year. We
added a further 2.0 million IoT connections, driven by continued
demand from the automotive sector. Following our announced
long-term national roaming agreement with 1&1, we have started
technical user testing in anticipation of the customer
migration.
UK ⫶
Lower inflation driving revenue
slowdown
|
|
|
|
|
|
|
19% of Group service
revenue
|
Q1 FY25
|
Q1 FY24
|
Reported
|
Organic
|
|
€m
|
€m
|
change %
|
change
%1
|
Total revenue
|
1,689
|
1,684
|
0.3
|
|
- Service revenue
|
1,429
|
1,401
|
2.0
|
-
|
- Other revenue
|
260
|
283
|
|
|
Note:
1. Non-GAAP
measure. See page 7 for more information.
Growth
Total revenue increased by 0.3% as
higher service revenue and an appreciation of the pound sterling
against the euro were offset by lower equipment revenue.
Service revenue increased by 2.0%
(Q4: +6.8%). Organic service revenue growth was stable in Q1 (Q4:
+3.6%) as growth in the Consumer segment was offset by a decline in
Business. Lower growth in the quarter was driven by the lower
inflation-linked price rises and the ongoing dilution of the back
book from front book pricing in mobile.
Vodafone Business service revenue
declined by 1.1% (Q4: +2.6%). Organic growth in Vodafone Business
service revenue decreased by 3.0% (Q4: -0.5%), as growth in fixed
was offset by a decline in mobile, primarily driven by lower
inflation-linked price increases.
Customers
In mobile, our Consumer contract
customer base increased by 22,000 in the quarter. However, this was
offset by large low-value contract disconnections in Business,
resulting in our total contract customer base declining by 29,000
in Q1. Our digital prepaid sub-brand 'VOXI' continued to grow, with
17,000 customers added during the quarter.
In fixed, we continue to be one of
the fastest growing broadband providers in the UK and our customer
base increased by 44,000 in Q1. In July, we announced that we now
offer the fastest speeds in more locations across the UK than any
other major provider, covering 16.2 million households. We also
provide the UK's fastest WiFi technology throughout the home with
our Pro II broadband product.
Merger of Vodafone UK and Three UK
In June 2023, we announced a binding
agreement to combine our UK business with Three UK to create a
sustainable, and competitive third scaled network operator in the
UK. Following the merger, which we expect to close around the end
of the 2024 calendar year, Vodafone and CK Hutchison will own 51%
and 49% of the combined business, respectively. Full details of the
transaction can be found here:
investors.vodafone.com/merger-of-vodafone-uk-and-three-uk.
In July 2024, we announced a new
mobile network sharing agreement with Virgin Media O2 that extends
the current agreement for more than a decade. Subject to the
approval of the merger with Three UK, this new agreement will also
support the enlarged network of the combined business, providing
significant network improvements and giving customers more choice,
better quality and greater coverage across the UK.
Other Europe ⫶ Good momentum, some Business project
phasing
|
|
|
|
|
|
|
16% of Group service
revenue
|
Q1 FY25
|
Q1 FY24
|
Reported
|
Organic
|
|
€m
|
€m
|
change %
|
change
%1
|
Total revenue
|
1,382
|
1,332
|
3.8
|
|
- Service revenue
|
1,180
|
1,161
|
1.6
|
2.3
|
- Other revenue
|
202
|
171
|
|
|
Note:
1. Non-GAAP
measure. See page 7 for more information.
Growth
Total revenue increased by 3.8%, due
to higher service and equipment revenue.
Service revenue grew by 1.6% (Q4:
+0.3%). Organic service revenue increased by 2.3% (Q4: +5.5%),
supported by price actions in most markets, partly offset by lower
mobile termination rates. The lower growth rate in the quarter
reflected the phasing of Business project revenue, as well as a
lower inflation-linked price increases in most
markets.
In Portugal, our Consumer and
Business segments continued to perform well, also supported by our
price actions. Service revenue in Ireland was impacted by lower
mobile termination rates and lower Business fixed revenue,
partially offset by a higher customer base in mobile and broadband.
Service revenue in Greece increased, supported by annual
contractual price increases and Business demand.
Vodafone Business service revenue
increased by 2.5% (Q4: +8.1%). Organic growth in Vodafone Business
service revenue was 3.3% (Q4: +12.2%), supported by digital
services. The lower growth rate in Q1 was driven by higher project
revenue in FY24.
Customers
Our good commercial momentum
continued as we added 121,000 mobile contract and 12,000 broadband
customers in Q1.
Turkey ⫶ Continued growth ahead of inflation
and in euro terms
|
|
|
|
|
|
|
7% of Group service revenue
|
Q1 FY25
|
Q1 FY24
|
Reported
|
Organic
|
|
€m
|
€m
|
change %
|
change
%1
|
Total revenue
|
664
|
456
|
45.6
|
|
- Service revenue
|
515
|
333
|
54.7
|
91.9
|
- Other revenue
|
149
|
123
|
|
|
Note:
1. Non-GAAP
measure. See page 7 for more information.
Growth
Total revenue increased by 45.6% to
€0.7 billion, with strong service revenue growth partly offset by a
significant devaluation of the local currency.
Despite currency devaluation,
service revenue continued to grow in euro terms. Organic growth in
service revenue in Turkey was 91.9% (Q4: +105.6%), driven by
ongoing repricing actions to reflect the high inflationary
environment and value accretive base management
activities.
Vodafone Business service revenue
increased by 71.1% (Q4: +20.3%). Organic growth in Vodafone
Business service revenue was 112.6% (Q4: +102.2%), driven by
digital services.
Customers
We maintained our good commercial
momentum, adding 69,000 mobile contract customers during the
quarter, including migrations from prepaid customers.
Hyperinflationary accounting in Turkey
Turkey was designated as a
hyperinflationary economy on 1 April 2022 in line with IAS 29
'Financial Reporting in Hyperinflationary Economies'. Organic
growth metrics exclude the impact of the hyperinflation adjustment
and foreign exchange translation in Turkey.
Africa ⫶ Good growth continuing
|
|
|
|
|
|
|
19% of Group service
revenue
|
Q1 FY25
|
Q1 FY24
|
Reported
|
Organic
|
|
€m
|
€m
|
change %
|
change
%1
|
Total revenue
|
1,813
|
1,757
|
3.2
|
|
- Service revenue
|
1,449
|
1,426
|
1.6
|
10.0
|
- Other revenue
|
364
|
331
|
|
|
Note:
1. Non-GAAP
measure. See page 7 for more information.
Growth
Total revenue increased by 3.2% to
€1.8 billion due to higher service and equipment
revenue.
Service revenue increased by 1.6%
(Q4: +1.2%). Organic growth in service revenue grew by 10.0% (Q4:
+10.0%) supported by price increases in South Africa and continued
strong growth in Egypt.
In South Africa, service revenue
growth was supported by Consumer mobile, with growth accelerating
as a result of prepaid price increases in the quarter, and good
fixed line growth in Consumer and Business. Service revenue in
Egypt grew strongly and remained above inflation in Q1. The growth
in Egypt was supported by strong data growth, successful commercial
campaigns, price increases implemented in the prior quarter and
strong growth in our financial services product, 'Vodafone Cash'.
In Vodacom's international markets, service revenue growth was
supported by a higher customer base and strong M-Pesa and data
demand. M-Pesa revenue grew by 11.0% on an organic basis,
representing 26.9% of service revenue.
Vodacom Business service revenue
grew by 2.3% (Q4: -0.4%). Organic growth in Vodacom Business
service revenue increased by 8.4% (Q4: 7.8%), as good trading
momentum in South Africa was supported by strong demand for digital
services as well as mobile price increases.
Customers
In South Africa, we added 53,000
mobile contract customers in Q1. Across our active customer base,
77.9% now use data services. Our 'VodaPay' super-app continued to
gain traction with 6.9 million registered users.
In Egypt, we added 137,000 contract
customers and 0.6 million prepaid mobile customers in Q1. 'Vodafone
Cash' now has 8.7 million active users with 0.5 million users added
during the quarter.
In Vodacom's international markets,
we added 0.9 million mobile customers with good growth in data
customers supported by our innovative and new prepaid handset
financing model. Our mobile customer base is now 55.1 million, with
66.8% of active customers using our data services. Our M-Pesa
customer base now totals 22.2 million.
Further information on our
operations in Africa can be accessed here: vodacom.com.
In the discussion of the Group's
reported operating results, non-GAAP measures are presented to
provide readers with additional financial information that is
regularly reviewed by management. This additional information
presented is not uniformly defined by all companies including those
in the Group's industry. Accordingly, it may not be comparable with
similarly titled measures and disclosures by other companies.
Additionally, certain information presented is derived from amounts
calculated in accordance with IFRS but is not itself a measure
defined under GAAP. Such measures should not be viewed in isolation
or as an alternative to the equivalent GAAP measure. The non-GAAP
measures discussed in this document are listed
below.
Non-GAAP measure
|
Defined on page
|
Closest equivalent GAAP measure
|
Reconciled on page
|
Performance metrics
|
|
|
|
Organic revenue growth
|
Page 8
|
Revenue
|
Pages 9 and 10
|
Organic service revenue growth
(Group and Operating segments)
|
Page 8
|
Service revenue
|
Pages 9 and 10
|
Organic mobile service revenue
growth
|
Page 8
|
Service revenue
|
Pages 9 and 10
|
Organic fixed service revenue
growth
|
Page 8
|
Service revenue
|
Pages 9 and 10
|
Organic Vodafone Business service
revenue growth (Group and Operating segments)
|
Page 8
|
Service revenue
|
Pages 9 and 10
|
Organic M-Pesa revenue
growth
|
Page 8
|
Service revenue
|
Pages 9 and 10
|
Group Adjusted EBITDAaL
|
Page 11
|
Operating profit
|
Page 11
|
Organic Group Adjusted EBITDAaL
growth
|
Pages 8 and 11
|
Operating profit
|
Page 11
|
Group Adjusted EBITDAaL
margin
|
Page 11
|
Operating profit
|
Page 11
|
Organic percentage point change in
Group Adjusted EBITDAaL margin
|
Pages 8 and 11
|
Operating profit
|
Page 11
|
Non-GAAP
measures
Performance metrics
Organic growth
Organic growth presents performance
on a comparable basis, excluding the impact of foreign exchange
rates, mergers and acquisitions, the hyperinflation adjustment in
Turkey and other adjustments to improve the comparability of
results between periods.
Organic growth is calculated for
revenue and profitability metrics, as follows:
-
Revenue;
-
Service revenue;
-
Mobile service revenue;
-
Fixed service revenue;
-
Vodafone Business service revenue;
-
M-Pesa revenue;
-
Group Adjusted EBITDAaL; and
-
Group Adjusted EBITDAaL margin
Whilst organic growth is not
intended to be a substitute for reported growth, nor is it superior
to reported growth, we believe that the measure provides useful and
necessary information to investors and other interested parties for
the following reasons:
- It
provides additional information on underlying growth of the
business without the effect of certain factors unrelated to its
operating performance;
- It
is used for internal performance analysis; and
- It facilitates comparability of underlying growth with other
companies (although the term 'organic' is not a defined term under
GAAP and may not, therefore, be comparable with similarly-titled
measures reported by other companies).
We have not provided a comparative
in respect of organic growth rates as the current rates describe
the change between the beginning and end of the current period,
with such changes being explained by the commentary in this
document. If comparatives were provided, significant sections of
the commentary for prior periods would also need to be included,
reducing the usefulness and transparency of this
document.
Non-GAAP
measures
Quarter ended 30 June 2024
|
|
|
|
|
|
|
|
|
|
Re-presented1
|
Reported
growth
|
M&A
and Other
|
Foreign
exchange
|
Organic
growth
|
|
|
Q1 FY25
|
Q1 FY24
|
|
|
€m
|
€m
|
%
|
pps
|
pps
|
%
|
Service revenue
|
|
|
|
|
|
|
Germany
|
2,778
|
2,819
|
(1.5)
|
-
|
-
|
(1.5)
|
|
Mobile service revenue
|
1,231
|
1,240
|
(0.8)
|
-
|
-
|
(0.8)
|
|
Fixed service revenue
|
1,547
|
1,579
|
(2.0)
|
-
|
-
|
(2.0)
|
UK
|
1,429
|
1,401
|
2.0
|
-
|
(2.0)
|
-
|
|
Mobile service revenue
|
1,045
|
1,039
|
0.6
|
-
|
(2.0)
|
(1.4)
|
|
Fixed service revenue
|
384
|
362
|
6.1
|
-
|
(2.0)
|
4.1
|
Other Europe
|
1,180
|
1,161
|
1.6
|
-
|
0.7
|
2.3
|
Turkey
|
515
|
333
|
54.7
|
(80.1)
|
117.3
|
91.9
|
Africa
|
1,449
|
1,426
|
1.6
|
-
|
8.4
|
10.0
|
Common Functions
|
146
|
131
|
|
|
|
|
Eliminations
|
(32)
|
(36)
|
|
|
|
|
Total service revenue
|
7,465
|
7,235
|
3.2
|
(1.2)
|
3.4
|
5.4
|
Other revenue
|
1,571
|
1,558
|
|
|
|
|
Revenue
|
9,036
|
8,793
|
2.8
|
(1.3)
|
3.3
|
4.8
|
|
|
|
|
|
|
|
|
Other growth metrics
|
|
|
|
|
|
|
Vodafone Business - Service
revenue
|
1,911
|
1,878
|
1.8
|
(0.6)
|
1.4
|
2.6
|
Germany - Vodafone Business service
revenue
|
586
|
596
|
(1.7)
|
-
|
-
|
(1.7)
|
UK - Vodafone Business service
revenue
|
522
|
528
|
(1.1)
|
-
|
(1.9)
|
(3.0)
|
Other Europe - Vodafone Business
service revenue
|
372
|
363
|
2.5
|
-
|
0.8
|
3.3
|
Turkey - Vodafone Business service
revenue
|
77
|
45
|
71.1
|
(89.7)
|
131.2
|
112.6
|
Africa - Vodacom Business service
revenue
|
265
|
259
|
2.3
|
-
|
6.1
|
8.4
|
M-Pesa revenue
|
99
|
91
|
8.8
|
-
|
2.2
|
11.0
|
Note:
1. The
results for the quarter ended 30 June 2023 have been re-presented
to report the results of Vodafone Spain and Vodafone Italy as
discontinued operations. The disposal of Vodafone Spain completed
on 31 May 2024.
Non-GAAP
measures
Quarter ended 31 March 2024
|
|
|
|
|
|
|
|
|
|
|
Reported
growth
|
M&A
and Other
|
Foreign
exchange
|
Organic
growth
|
|
|
Q4 FY24
|
Q4 FY23
|
|
|
€m
|
€m
|
%
|
pps
|
pps
|
%
|
Service revenue
|
|
|
|
|
|
|
Germany
|
2,839
|
2,821
|
0.6
|
-
|
-
|
0.6
|
|
Mobile service revenue
|
1,257
|
1,235
|
1.8
|
-
|
-
|
1.8
|
|
Fixed service revenue
|
1,582
|
1,586
|
(0.3)
|
0.1
|
-
|
(0.2)
|
UK
|
1,409
|
1,319
|
6.8
|
-
|
(3.2)
|
3.6
|
|
Mobile service revenue
|
1,012
|
948
|
6.8
|
-
|
(3.1)
|
3.7
|
|
Fixed service revenue
|
397
|
371
|
7.0
|
-
|
(3.5)
|
3.5
|
Other Europe1
|
1,181
|
1,178
|
0.3
|
4.8
|
0.4
|
5.5
|
Turkey2
|
525
|
454
|
15.6
|
1.1
|
88.9
|
105.6
|
Africa
|
1,484
|
1,466
|
1.2
|
-
|
8.8
|
10.0
|
Common Functions
|
140
|
128
|
|
|
|
|
Eliminations
|
(32)
|
(31)
|
|
|
|
|
Total service revenue
|
7,546
|
7,335
|
2.9
|
0.2
|
4.0
|
7.1
|
Other revenue
|
1,842
|
1,793
|
|
|
|
|
Revenue
|
9,388
|
9,128
|
2.8
|
1.2
|
4.3
|
8.3
|
|
|
|
|
|
|
|
|
Other growth metrics
|
|
|
|
|
|
|
Turkey - Service revenue
|
525
|
430
|
22.1
|
(18.2)
|
101.7
|
105.6
|
Vodafone Business - Service
revenue
|
1,979
|
1,918
|
3.2
|
0.4
|
1.8
|
5.4
|
Germany - Vodafone Business service
revenue
|
605
|
599
|
1.0
|
-
|
-
|
1.0
|
UK - Vodafone Business service
revenue
|
545
|
531
|
2.6
|
-
|
(3.1)
|
(0.5)
|
Other Europe - Vodafone Business
service revenue
|
399
|
369
|
8.1
|
3.5
|
0.6
|
12.2
|
Turkey - Vodafone Business service
revenue
|
71
|
59
|
20.3
|
(17.9)
|
99.8
|
102.2
|
Africa - Vodacom Business service
revenue
|
270
|
271
|
(0.4)
|
-
|
8.2
|
7.8
|
Notes:
1. The
comparative period includes the results of Vodafone Hungary which,
as previously reported, was sold in January 2023.
2. The
comparative period includes the results of Vodafone Ghana which, as
previously reported, was sold in February 2023.
Non-GAAP
measures
Non-GAAP measure
|
Purpose
|
Definition
|
Group Adjusted EBITDAaL
|
Adjusted EBITDAaL is used in
conjunction with financial measures such as operating profit to
assess our operating performance and profitability.
It is a key external metric used by
the investor community to assess performance of our
operations.
It is our segment performance
measure in accordance with IFRS 8 (Operating Segments).
|
Adjusted EBITDAaL is operating
profit after depreciation on lease-related right of use assets and
interest on lease liabilities but excluding depreciation,
amortisation and gains/losses on disposal of owned assets and
excluding share of results of equity accounted associates and joint
ventures, impairment losses/reversals, restructuring costs arising
from discrete restructuring plans, other income and expense and
significant items that are not considered by management to be
reflective of the underlying performance of the Group.
|
Group Adjusted EBITDAaL
margin
|
|
Group Adjusted EBITDAaL margin is
Group Adjusted EBITDAaL divided by Revenue.
|
The table below provides the
reconciliations of: (i) Group Adjusted EBITDAaL to Group Operating
profit which is the closest equivalent GAAP measure, and (ii)
Reported growth in Group Adjusted EBITDAaL to organic growth in
Group Adjusted EBITDAaL.
|
|
|
Reported
growth
|
M&A
and Other
|
Foreign
exchange
|
Organic
growth
|
|
|
Q1 FY25
|
Q1 FY24
|
|
|
€m
|
€m
|
%
|
pps
|
pps
|
%
|
Group Adjusted EBITDAaL
|
2,681
|
2,626
|
2.1
|
(0.5)
|
3.5
|
5.1
|
Restructuring costs
|
(38)
|
(16)
|
|
|
|
|
Interest on lease
liabilities
|
109
|
107
|
|
|
|
|
Profit/(loss) on disposal of
property, plant and equipment and intangible assets
|
2
|
(3)
|
|
|
|
|
Depreciation and amortisation of
owned assets
|
(1,847)
|
(1,776)
|
|
|
|
|
Share of results of equity accounted
associates and joint ventures
|
48
|
(56)
|
|
|
|
|
Impairment reversal
|
-
|
64
|
|
|
|
|
Other income
|
590
|
135
|
|
|
|
|
Group Operating profit
|
1,545
|
1,081
|
|
|
|
|
|
|
|
|
|
|
|
|
The table below provides the
reconciliation between the reported growth in the Group Adjusted
EBITDAaL margin and the organic growth in the Group Adjusted
EBITDAaL margin.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
growth
|
M&A
and Other
|
Foreign
exchange
|
Organic
growth
|
|
|
Q1 FY25
|
Q1 FY24
|
|
|
%
|
%
|
%
|
pps
|
pps
|
%
|
Percentage point change in Adjusted EBITDAaL
margin
|
|
|
|
|
|
|
Group
|
29.7%
|
29.9%
|
(0.2)
|
0.2
|
0.1
|
0.1
|
Definitions
Key terms are defined below. See
page 7 for the location of definitions for non-GAAP
measures.
Term
|
Definition
|
Africa
|
Comprises the Vodacom
Group.
|
ARPU
|
Average revenue per user, defined as
customer revenue and incoming revenue divided by average
customers.
|
Common Functions
|
Comprises central teams and business
functions.
|
Depreciation and
amortisation
|
The accounting charge that allocates
the cost of tangible or intangible assets, whether owned or leased,
to the income statement over its useful life. The measure includes
the profit or loss on disposal of property, plant and equipment,
software and leased assets.
|
Eliminations
|
Refers to the removal of
intercompany transactions to derive the consolidated financial
statements.
|
Europe
|
Comprises the Group's European
businesses and the UK.
|
Fixed service revenue
|
Service revenue (see below) relating
to the provision of fixed line and carrier services.
|
GAAP
|
Generally Accepted Accounting
Principles.
|
IFRS
|
International Financial Reporting
Standards.
|
Incoming revenue
|
Comprises revenue from termination
rates for voice and messaging to Vodafone customers.
|
Internet of Things
('IoT')
|
The network of physical objects
embedded with electronics, software, sensors, and network
connectivity, including built-in mobile SIM cards, that enable
these objects to collect data and exchange communications with one
another or a database.
|
Mobile service revenue
|
Service revenue (see below) relating
to the provision of mobile services.
|
Other Europe
|
Other Europe markets comprise
Portugal, Ireland, Greece, Romania, Czech Republic and
Albania.
|
Other revenue
|
Other revenue principally includes
equipment revenue, interest income, income from partner market
arrangements and lease revenue, including in respect of the lease
out of passive tower infrastructure.
|
Reported growth
|
Reported growth is based on amounts
reported in euros and determined under IFRS.
|
Revenue
|
The total of Service revenue (see
below) and Other revenue (see above).
|
Roaming
|
Roaming allows customers to make
calls, send and receive texts and data on our and other operators'
mobile networks, usually while travelling abroad.
|
Service revenue
|
Service revenue is all revenue
related to the provision of ongoing services to the Group's
consumer and enterprise customers, together with roaming revenue,
revenue from incoming and outgoing network usage by non-Vodafone
customers and interconnect charges for incoming calls.
|
Vodafone Business
|
Vodafone Business supports
organisations in a digital world. With Vodafone's expertise in
connectivity, our leading IoT platform and our global scale, we
deliver the results that organisations need to progress and thrive.
We support businesses of all sizes and sectors.
|
1. References to Vodafone are to Vodafone Group Plc and
references to Vodafone Group are to Vodafone Group Plc and its
subsidiaries unless otherwise stated. Vodafone, the Vodafone Speech
Mark Devices, Vodacom and Together we can are trade marks owned by
Vodafone. Other product and company names mentioned herein may be
the trade marks of their respective owners.
2. All
growth rates reflect a comparison to the quarter ended 30 June 2023
unless otherwise stated.
3. References to "Q1", "Q2", "Q3" and "Q4" are to the three
months ended 30 June, 30 September, 31 December and 31 March.
References to the "year", "financial year" or "FY25" are to the
financial year ending 31 March 2025. References to "last year",
"last financial year" or "FY24" are to the financial year ended 31
March 2024.
4. Vodacom refers to the Group's interest in Vodacom Group
Limited ('Vodacom') as well as its operations, including
subsidiaries in South Africa, Egypt, DRC, Tanzania, Mozambique and
Lesotho.
5. This document contains references to our and our affiliates'
websites. Information on any website is not incorporated into this
update and should not be considered part of this update.
Forward-looking statements and other matters
|
This document contains
'forward-looking statements' within the meaning of the US Private
Securities Litigation Reform Act of 1995 with respect to the
Group's financial condition, results of operations and businesses
and certain of the Group's plans and objectives. In particular,
such forward-looking statements include, but are not limited to,
statements with respect to: the Group's portfolio transformation
plan; expectations regarding the Group's financial condition or
results of operations and the guidance for Adjusted EBITDAaL and
Adjusted free cash flow for the financial year ending 31 March
2025; the announced agreement to combine Vodafone UK and Three UK;
the mobile network sharing agreement with Virgin Media O2; the
announced agreement to dispose of Vodafone Italy; changes to
German TV laws and the migration of users to individual TV customer
contracts; expectations for the Group's future performance
generally; the Group's share buyback programme; expectations
regarding the operating environment and market conditions and
trends, including customer usage, competitive position and
macroeconomic pressures, price trends and opportunities in specific
geographic markets; intentions and expectations regarding the
development, launch and expansion of products, services and
technologies, either introduced by Vodafone or by Vodafone in
conjunction with third parties or by third parties independently;
expectations regarding the integration or performance of current
and future investments, associates, joint ventures, non-controlled
interests and newly acquired businesses; the impact of regulatory
and legal proceedings involving the Group and of scheduled or
potential regulatory changes; certain of the Group's plans and
objectives, including the Group's strategy.
Forward-looking statements are
sometimes but not always identified by their use of a date in the
future or such words as 'will', 'may', 'expects', 'believes',
'continue', 'intends', 'plans', 'further', 'ongoing',
'anticipates', or 'could'. By their nature, forward-looking
statements are inherently predictive, speculative and involve risk
and uncertainty because they relate to events and depend on
circumstances that will occur in the future. There are a number of
factors that could cause actual results and developments to differ
materially from those expressed or implied by these forward-looking
statements. These factors include, but are not limited to the
following: general economic and political conditions in the
jurisdictions in which the Group operates and changes to the
associated legal, regulatory and tax environments; increased
competition; levels of investment in network capacity and the
Group's ability to deploy new technologies, products and services,
including artificial intelligence; the
Group's ability to optimise its portfolio in line with its business
transformation plan; evolving cyber threats
to the Group's services and confidential data; rapid changes to
existing products and services and the inability of new products
and services to perform in accordance with expectations; the
ability of the Group to integrate new technologies, products and
services with existing networks, technologies, products and
services; the Group's ability to generate and grow revenue; slower
than expected impact of new or existing products, services or
technologies on the Group's future revenue, cost structure and
capital expenditure outlays; slower than expected customer growth,
reduced customer retention, reductions or changes in customer
spending and increased pricing pressure; the Group's ability to
extend and expand its spectrum resources, to support ongoing growth
in customer demand for mobile data services; the Group's ability to
secure the timely delivery of high-quality products from suppliers;
loss of suppliers, disruption of supply chains, shortages and
greater than anticipated prices of new mobile handsets; changes in
the costs to the Group of, or the rates the Group may charge for,
terminations and roaming minutes; the impact of a failure or
significant interruption to the Group's telecommunications, data
centres, networks, IT systems or data protection systems; the
Group's ability to realise expected benefits from acquisitions,
partnerships, joint ventures, associates, franchises, brand
licences, platform sharing or other arrangements with third
parties, including the signed agreement to combine Vodafone's UK
business with Three UK, the mobile network sharing agreement with
Virgin Media O2 and the Group's strategic partnership with
Microsoft; acquisitions and divestments of Group businesses and
assets and the pursuit of new, unexpected strategic opportunities;
the Group's ability to integrate acquired business or assets; the
extent of any future write-downs or impairment charges on the
Group's assets, or restructuring charges incurred as a result of an
acquisition or disposition; developments in the Group's financial
condition, earnings and distributable funds and other factors that
the Board takes into account in determining the level of dividends;
the Group's ability to satisfy working capital requirements;
changes in foreign exchange rates; changes in the regulatory
framework in which the Group operates; the impact of legal or other
proceedings against the Group or other companies in the
communications industry; and changes in statutory tax rates and
profit mix, including the disposal of Vodafone Italy.
A review of the reasons why actual
results and developments may differ materially from the
expectations disclosed or implied within forward-looking statements
can be found in the summary of our principal risks in the Group's
Annual Report for the year ended 31 March 2024. The Annual Report
can be found on the Vodafone Group's website (http://investors.vodafone.com/results).
All subsequent written or oral forward-looking statements
attributable to Vodafone or any member of the Vodafone Group or any
persons acting on their behalf are expressly qualified in their
entirety by the factors referred to above. No assurances can be
given that the forward-looking statements in this document will be
realised. Subject to compliance with applicable law and
regulations, Vodafone does not intend to update these
forward-looking statements and does not undertake any obligation to
do so.
Copyright © Vodafone Group 2024
-End-