Vodafone Group Plc has reported a notable decline in revenue in the first half of fiscal year 2024 (H1 FY24), alongside strategic market adjustments. Group Chief Executive Margherita Della Valle commented on the mixed financial results, highlighting the company’s focus on customer service and business simplification.

Financial Highlights and Strategic Movements

Vodafone’s revenue fell by 4.3% to €21.9 billion, impacted by adverse foreign exchange rate movements and recent business disposals, including Vantage Towers, Vodafone Hungary, and Vodafone Ghana. Despite these challenges, the company has shown signs of recovery in the German market and has announced significant strategic transactions to enhance growth in the UK and to exit the Spanish market.

Detailed Financial Analysis

Operating profit saw a substantial decrease of 44.2% to €1.7 billion. This decline is attributed to the previous year’s business disposals, currency fluctuations, and lower returns from joint ventures and associates. However, adjusted EBITDAaL showed a marginal organic growth of 0.3%, despite increased energy costs. The company also reported an adjusted free cash outflow of €1.5 billion, reflecting lower EBITDAaL and reduced dividends from associates.

Future Outlook and Dividends

Vodafone reaffirms its FY24 guidance, anticipating ‘broadly flat’ adjusted EBITDAaL around €13.3 billion and an adjusted free cash flow of approximately €3.3 billion. The company maintains its interim dividend per share at 4.5 eurocents, with a record date set for 24 November 2023.

Conclusion

Vodafone Group Plc’s H1 FY24 results depict a challenging period marked by revenue decline and strategic shifts. However, the company’s ongoing efforts to streamline operations and focus on key markets indicate a commitment to long-term growth and stability in the telecommunications sector.

  Margherita Della Valle, Vodafone Group