Vodafone swings to €3.6B loss in H1 FY27 earnings
The upgraded FY27 Group ranges imply 7% organic Adjusted EBITDAaL growth and 21% organic Adjusted free cash flow growth at their mid-points.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
6-K
Rhea-AI Filing Summary
Vodafone Group Public Limited Company reported H1 FY27 revenue of €21.9 billion, up 11.4% year over year, and service revenue of €18.4 billion, up 12.8% reported and 5.8% organically. Adjusted EBITDAaL was €6.5 billion, up 12.6% reported and 6.4% organically. It recorded a €3.6 billion loss, versus a €1.1 billion profit a year earlier, reflecting a €4.85 billion Germany impairment and a €2.2 billion UK deferred-tax-asset write-down, partly offset by a €3.0 billion non-cash Safaricom gain.
Vodafone raised FY27 guidance to €13.2–13.4 billion Adjusted EBITDAaL and €2.8–3.0 billion Adjusted free cash flow. In July 2026, it completed a £4.3 billion buyout of CK Hutchison Group Telecom Holding Limited’s 49% VodafoneThree stake, bringing ownership to 100%. Operating cash inflow rose 24.8% to €6.4 billion, while adjusted free cash flow was a €440 million outflow. Net debt was €33.5 billion at September 30, versus €25.4 billion at March 31. The interim dividend is 2.306 eurocents per share, payable February 3, 2027.
4 points · 1 major1 major · 3 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.FY27 Adjusted EBITDAaL guidance increased to €13.2–13.4 billion.
- Moderate pointRevenue rose 11.4% to €21.9 billion in H1 FY27.
- Moderate pointAdjusted EBITDAaL rose 12.6% to €6.5 billion in H1 FY27.
- Moderate pointOperating cash inflow rose 24.8% to €6.4 billion.
Negative
- Major pointH1 FY27: €3.6 billion loss, versus €1.1 billion profit in H1 FY26.
- Moderate pointNet debt increased to €33.5 billion from €25.4 billion at March 31.
- Minor pointGermany impairment charge was €4.85 billion.
Filing Explained
Safaricom stays consolidated during the appeal; an unsuccessful appeal would trigger a reassessment of its accounting.
This Form 6-K reports Vodafone’s H1 FY27 results and says Safaricom remains consolidated while an appeal challenges its acquisition of the Kenyan government’s 15% stake: the High Court nullified the transaction on
A separate efficiency plan targets over
Key Figures
Revenue: €21.9 billion
Adjusted EBITDAaL: €6.5 billion
Loss for the financial period: €3.6 billion loss
+5 more
8 metrics
Revenue
€21.9 billion
H1 FY27; up 11.4% from H1 FY26
Adjusted EBITDAaL
€6.5 billion
H1 FY27; up 12.6% reported and 6.4% organically
Loss for the financial period
€3.6 billion loss
H1 FY27; H1 FY26 was a €1.1 billion profit
Germany impairment charge
€4.85 billion
H1 FY27
Net debt
€33.5 billion
At September 30, 2026; €25.4 billion at March 31, 2026
FY27 Adjusted EBITDAaL guidance
€13.2–13.4 billion
Upgraded Group guidance
FY27 Adjusted free cash flow guidance
€2.8–3.0 billion
Upgraded Group guidance
Interim dividend per share
2.306 eurocents
H1 FY27; payable February 3, 2027
Key Terms
Adjusted EBITDAaL, organic service revenue growth, Adjusted free cash flow, impairment charge
4 terms
Adjusted EBITDAaL financial
"Adjusted EBITDAaL increased 12.6% to €6.5 billion"
organic service revenue growth financial
"Organic service revenue growth"
Adjusted free cash flow financial
"Adjusted free cash flow was an outflow of €440 million"
Adjusted free cash flow is the amount of money a company generates from its operations after accounting for essential expenses and investments, like maintaining or upgrading equipment. It shows how much cash is truly available to grow the business, pay debts, or return to shareholders, helping investors see the company's financial health more clearly.
impairment charge financial
"impairment charge of €4.85 billion"
An impairment charge is an accounting write-down taken when a company determines an asset—like a building, patent, or investment—is worth less than its recorded value, similar to lowering the price tag on a used car when damage reduces its resale value. It matters to investors because it reduces reported profits and the company’s asset base, can signal business challenges or one-time losses, and may affect future earnings, creditworthiness, and valuation.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
How much revenue did VOD report in H1 FY27?
Vodafone reported H1 FY27 total revenue of €21.9 billion, up 11.4% from €19.6 billion in H1 FY26. Service revenue was €18.4 billion, up 12.8% as reported and 5.8% on an organic basis.
What are VOD's upgraded FY27 guidance ranges?
Vodafone's FY27 Group guidance is €13.2–13.4 billion for Adjusted EBITDAaL and €2.8–3.0 billion for Adjusted free cash flow. The company also expects Europe Adjusted EBITDAaL of €7.6–7.9 billion; the Group ranges imply organic growth of 7% and 21%, respectively, at the mid-points.
What are Vodafone's VodafoneThree savings targets?
Vodafone upgraded its VodafoneThree annual savings target to £0.8 billion by FY30 from £0.7 billion previously, and set a target of £1 billion annual savings by FY32. The targets were announced at the VodafoneThree Investor Briefing in October 2026.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULES 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
Dated
November 10, 2026
Commission
File Number: 001-10086
VODAFONE GROUP
PUBLIC LIMITED COMPANY
(Translation
of registrant’s name into English)
VODAFONE
HOUSE, THE CONNECTION, NEWBURY, BERKSHIRE, RG14 2FN,
ENGLAND
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form
20-F ✓
Form 40-F _
This
Report on Form 6-K contains a Stock Exchange Announcement dated 10
November 2026 entitled ‘Vodafone Group H1 FY27
Results’.
|
|
|
Vodafone
Group Plc
H1
FY27 Results
10
November 2026
|
 |
|
Strong start with FY27 guidance upgrade
“We have made a strong start to Vodafone’s new growth
chapter, with organic service revenue increasing by 5.8%. This
included our best-ever growth in Vodafone Business, with a record
performance in digital services as we focus on smart, secure and
sovereign solutions for our B2B and public sector
customers.
I am very happy about our overall Group performance, but Germany is
not yet where it needs to be. We have a clear action plan in
progress, which is structurally simplifying our German operations
and improving customer satisfaction across all of our
services.
Strong Group revenue growth – together with our continued
focus on productivity improvement – generated a 6.4% increase
in Adjusted EBITDAaL in H1. Today, we are upgrading our guidance
for both profit and cash flow for the year, and we now expect to
deliver over 20% organic Adjusted Free Cash Flow growth in year one
of our multi-year double-digit cash flow growth
trajectory.”
Margherita Della Valle
Group Chief Executive
|
Financial highlights
|
6.4%
|
2.306 eurocents
|
Upgrading FY27 Group guidance
|
|
Adjusted
EBITDAaL organic growth
|
Interim
dividend per share
|
7% Adj.
EBITDAaL & 21% Adj. FCF growth at mid-point
|
− Total
revenue: Increased 11.4% to
€21.9 billion (H1 FY26: €19.6 billion), driven by
strong service revenue growth and the consolidation of Safaricom,
VodafoneThree, and Telekom Romania. This was partially offset by
adverse foreign exchange movements.
− Service
revenue: Grew 12.8% to
€18.4 billion (H1 FY26: €16.3 billion), and increased
5.8% on an organic basis, with growth across all
segments.
− Germany:
Organic service revenue increased
0.4%, with higher wholesale revenue and fixed line growth,
reflecting good broadband growth in Consumer and strong digital
services growth in Business, offsetting the ongoing TV decline and
continued mobile pressure.
− UK:
Organic service revenue grew 0.9%,
driven by strong fixed line growth and higher mobile wholesale
revenue.
− Africa:
Organic service revenue accelerated to
13.4%, with growth in all of Vodacom’s markets across both
connectivity and financial services.
− Business
service revenue: Organic service revenue increased 5.8%, and in Q2
we delivered our best-ever growth of 6.6%. This was driven by
double-digit growth in digital services in Europe, as well as an
improvement in core connectivity.
− Adjusted
EBITDAaL: Increased 12.6% to €6.5 billion (H1 FY26:
€5.7 billion), and 6.4% on an organic basis driven by service
revenue growth and improved operating leverage. Adjusted EBITDAaL
margin improved 0.5 percentage points on an organic basis to
29.5%.
− Loss/profit
for the financial period: We
reported a loss of €3.6 billion (H1 FY26: profit of
€1.1 billion), due to non-cash accounting charges including
an impairment in Germany, primarily driven by adverse changes in
interest rates, and a write-down of deferred tax assets in the UK
following the buyout of CK Hutchison Group Telecom Holding Limited
from VodafoneThree. These items were partially offset by a non-cash
accounting gain arising from the Safaricom
transaction.
− Shareholder
returns: Interim dividend per
share increased 2.5% year-on-year to 2.306 eurocents (H1 FY26: 2.25
eurocents), in line with our progressive dividend
policy.
− FY27
guidance: We are upgrading our Group guidance ranges to
Adjusted EBITDAaL of €13.2 – 13.4 billion and Adjusted
free cash flow of €2.8 – 3.0
billion.
Operational highlights
− Customers:
We are now NPS leaders or co-leaders in 12 markets and customer
satisfaction continues to improve.
− Simplicity:
Strong start to our new opex
efficiency target, with €0.2 billion gross savings and
c.3,000 role reductions already delivered in Europe and shared
operations in H1.
−
Growth: Our upgraded FY27 Group guidance ranges imply
organic growth of 7% in Adjusted EBITDAaL and 21% in Adjusted free
cash flow at the mid-points, as we make a strong start to our new
growth chapter.
|
For more information, please contact:
|
|||||
|
Investor
Relations:
|
Investors.vodafone.com
|
ir@vodafone.co.uk
|
Media
Relations:
|
Vodafone.com/media/contact
|
GroupMedia@vodafone.com
|
|
Registered Office:
Vodafone House, The Connection, Newbury, Berkshire RG14 2FN,
England. Registered in England No. 1833679
|
|||||
|
A webcast Q&A
session will be held at 10:00 GMT on 10 November 2026. The webcast
and supporting information can be accessed at Investors.vodafone.com
|
|||||
Strategic
progress & portfolio
Progress in H1 FY27
In May 2026, we reviewed our progress over the last three years and
set out our medium-term outlook as Vodafone entered a new chapter
of growth. This is summarised in a video available here:
investors.vodafone.com/results.
Vodafone’s strategy is focused on three clear priorities of
Customers, Simplicity and Growth. Together, these priorities
underpin ongoing performance improvements and provide Vodafone with
strong foundations for future growth.
We have made a good start in H1 FY27, including the
following:
Customers
We continue to improve our customers’ experience and are
already seeing tangible results. We are now NPS leaders or
co-leaders in 12 markets and our share of promoters is improving
across the majority of our markets.
− Germany:
NPS has continued to improve across
all products in H1. Our customer experience has been recognised in
independent customer service assessments, including the ‘Best
Retail Stores’ accolade from CHIP. This is supported by the
continued investments we are making to ensure the quality of our
mobile and fixed networks. Our 5G standalone network now covers
over 94% of the population and we offer 5G slicing for B2B
customers. Our gigabit broadband footprint now covers 31.5 million
households, and the OXG rollout continues to accelerate, with 1.1
million homes passed.
− UK:
We are applying Vodafone’s
leading customer experience best practices to all our brands, with
customer satisfaction and mobile contract churn improving across
the board, including the Three brand. The results of our £11
billion investment programme are already visible with Vodafone 5G
speeds increasing by 82% since April 2025 (Ookla Speedtest
Intelligence). We are now monetising our network quality through
Vodafone SuperMobile, an innovative proposition offering higher
speeds and guaranteed reliability for consumers and business
customers. In broadband, we are now offering gigabit speeds and
Vodafone TV to 26.5 million households.
− Africa:
Our Vodacom markets continue to
capture the structural growth opportunities in Africa such as
population growth and rising data usage, driving a 7.6 million
increase in our customer base in the period. We continue to improve
our customer satisfaction across all our markets and hold leading
positions in 7 markets. We continue to expand next-generation
connectivity with 5G services now available in 7 markets. Beyond
core connectivity, we are scaling our financial services products
with 108 million FinTech customers.
− Vodafone
Business: We have continued to
expand our portfolio of smart, secure and sovereign digital
solutions. In partnership with Google, we launched AI
concierge, a customer engagement and productivity solution for
small businesses. We expanded our managed cyber security services
from Germany to Portugal, Ireland and Romania, and we announced
Vodafone as the exclusive telecom partner for AWS’ sovereign
cloud solution in Germany. We are also making targeted investments
in data centres in Egypt, Kenya and Türkiye, with our sixth
sovereign data centre recently opened in Izmir.
Simplicity
− Next
phase of our cost transformation journey: In May we announced our commitment to deliver over
€2 billion annual gross savings in Europe and our shared
operations by FY30, driving margin expansion within our multi-year
growth ambition. This new plan represents the third wave of
multi-year opex efficiency programmes. Between FY19 and FY22 we
delivered €1.5 billion annual net savings – a 16%
reduction of the baseline – through automation, benefits of
scale and simplification. Between FY23 and FY26, we delivered
€0.7 billion of annual gross savings and 11,000 role
reductions, which supported €0.3 billion reinvestments in
growth opportunities such as B2B and customer experience. Building
on these strong foundations, we have now identified initiatives
that target a further over 20% reduction of Europe and shared
operations opex. This means we will cut 30% of our addressable opex
base, recognising that a portion of our costs are subject to
long-term commitments.
− Fast
start to efficiency programme: In FY27, we expect to see a net reduction of
Europe opex of over €200 million, representing a good first
step in delivering our overall net target of over €1 billion.
Over €200 million gross savings have already been delivered
in H1 through a range of initiatives, including €50 million
synergies in the UK and 3,000 new role reductions across Europe and
shared operations. Furthermore, we have already announced an
additional 2,300 role reductions in
Germany.
Growth
We operate through four key divisions, Europe, Africa, B2B and
Investments, each with their own strengths, strategic priorities
and growth drivers. In addition, we have several scaled platforms
that provide us with a structural advantage. With these assets, our
diversified portfolio and growth drivers, disciplined capital
allocation and clear operational progress provide us with the
confidence in our mid-term value equation.
Our mid-term ambition is to deliver a double-digit organic growth
in Adjusted free cash flow. In our first year, we have made a
strong start with upgraded FY27 Group guidance ranges implying
organic growth of 7% in Adjusted EBITDAaL and 21% in Adjusted free
cash flow growth at the mid-points.
|
Mid-term
ambition1
|
|
FY26
performance
|
H1 FY27
performance
|
Considerations
|
|
|
Revenue growth
|
Europe
|
+0.1%
|
+0.8%
|
Building trust, focused on value
|
|
|
Africa
|
+12.9%
|
+13.4%
|
Structural growth opportunities
|
||
|
B2B
|
+3.2%
|
+5.8%
|
Growing demand, with diverse products & services
|
||
|
Group
|
+5.4%
|
+5.8%
|
|
||
|
Operating leverage
|
Group Adj. EBITDAaL margin
|
28.1%
|
29.5%
|
Annual >€2bn (gross) efficiency & synergy
potential
>€1bn (net) EU opex reduction opportunity
(FY27-FY30)2,3
|
|
|
Adj. EBITDAaL growth
|
Europe
|
(0.1)%
|
(1.3)%
|
Europe: Growth supported by UK synergies
|
|
|
Africa
|
+14.0%
|
+18.0%
|
Africa: Early-teens EBITDA CAGR
|
||
|
Group
|
+4.5%
|
+6.4%
|
|
||
|
Disciplined capital allocation
|
Group
|
c.18% capital intensity
|
Broadly stable capital intensity market-by-market
|
||
|
c.3% cost of
debt
|
Targeting lower half of
2.25-2.75x Adj. EBITDAaL/net debt range
|
||||
|
Double-digit organic growth in Adjusted FCF
|
 |
Euro growth in Adjusted FCF
|
|||
|
|
|
|
|
|
|
Notes:
1.
Medium-term
financial ambition assume no material change to the structure of
the Group (at 30 September 2026), is based on current prevailing
assessments of the macroeconomic outlook, including interest rates
and inflation, and is at constant foreign exchange
rates.
2.
Includes
Europe, shared operations and corporate services, and committed UK
cost synergies. The majority of the previously disclosed £800
million cost & capex synergies in the UK are expected to be
opex savings.
3.
Restructuring
and integration costs in FY27 are expected to peak at c.€0.7
billion, which includes integration costs of c.€0.4 billion
related to the VodafoneThree merger.
Portfolio
VodafoneThree Integration
In July 2026, we announced that we had completed the buyout of CK
Hutchison Group Telecom Holding Limited’s
(‘CKHGT’) 49% stake in VodafoneThree for £4.3
billion (€5.0 billion). As a result, Vodafone now owns 100%
of VodafoneThree, the UK's largest mobile operator and one of the
fastest growing broadband providers. Full ownership of
VodafoneThree strengthens our ability to accelerate execution and
capture in full the substantial value created through our £11
billion network investment programme and targeted
synergies.
At our VodafoneThree Investor Briefing in October 2026, we outlined
the business's strategy, growth ambitions and value creation
opportunity, and announced an upgrade of our synergy target to
£0.8 billion annual savings by FY30 (previously £0.7
billion per annum by FY30) and £1 billion of annual savings by
FY32. This is driven by further savings as our network build
completes and we benefit further from network rationalisation as
well as the efficiencies of full Group ownership. In addition, we
see potential to drive additional revenue synergies from the
merger.
New UK financial targets:
|
Annual
cost saving target
|
£1 billion per annum by FY32 (£0.8 billion p.a. by
FY30)
|
|
Adjusted
EBITDAaL growth
|
Mid-to-high single digit CAGR (FY25-32)
|
|
Operating
free cash flow1
growth
|
Over 3x by FY32 (versus FY25)
|
|
Return
on capital employed2
|
Exceeding cost of capital by FY32, materially above by
FY34
|
Notes:
1.
Operating free
cash flow defined as Adjusted EBITDAaL less capital
additions.
2.
Pre-tax
return on capital employed including
goodwill.
All materials from the VodafoneThree Investor Briefing are
available at: vodafone.com/vodafonethreeinvestorbriefing2026.
Greece
In June 2026, we announced that Vodafone Greece and Public Power
Corporation S.A. (‘PPC Group’) had entered into heads
of terms in relation to the formation of a potential 50:50 joint
venture comprising their respective fibre-to-the-home networks and
wholesale fibre businesses in Greece (the ‘JV’).
Vodafone Greece and PPC Group's fibre businesses currently cover
more than 1.6 million homes on a combined basis. The JV would
intend to provide wholesale open access to internet service
providers in Greece. The potential transaction is subject to
completion of due diligence, reaching agreement on binding
transaction documentation and would also be subject to customary
closing conditions, including regulatory approvals.
Africa
On 30 June 2026, we announced that Vodacom Group Ltd
(‘Vodacom’) had completed the acquisition of an
effective 20% of the issued share capital in Safaricom PLC
(‘Safaricom’), increasing its shareholding to 55%.
Vodacom acquired 15% from the Government of Kenya for a cash
consideration of KES 204 billion (€1.4 billion) and 5% from
Vodafone for a cash consideration of KES 68 billion (€0.5
billion). The acquisition resulted in a controlling equity interest
in Safaricom for the Group, consequently Safaricom is consolidated
by the Group from the completion date.
A legal challenge over the validity of the acquisition remains
ongoing in Kenya, with the High Court declaring the transaction
null and void on 15 September 2026. On 13 October 2026, the Court
of Appeal in Nairobi ordered that the prevailing status quo be
maintained pending its determination. As a result, Vodacom remains
the registered holder of the Safaricom shares acquired from the
Government of Kenya, and the related purchase consideration will be
held by the Government of Kenya, pending the hearing of the appeal.
See note 11 ‘Contingent liabilities and legal
proceedings’ in the unaudited condensed consolidated
financial statements for further information.
|
Outlook
|
FY27 guidance ⫶ Upgrading
Group ranges
In July 2026, we updated our guidance for FY27 for Adjusted
EBITDAaL and Adjusted free cash flow, to include the impact of
consolidating Safaricom, with Group Adjusted EBITDAaL expected to
be €13.0 – €13.3 billion and Adjusted free cash
flow expected to be €2.6 – €2.9
billion.
We now upgrade our guidance for FY27, with Group Adjusted EBITDAaL
expected to be €13.2 – €13.4 billion and Adjusted
free cash flow expected to be €2.8 – €3.0
billion. For FY27, we also provided additional outlook for Europe
and continue to expect Adjusted EBITDAaL to be €7.6 –
€7.9 billion.
Restructuring and integration costs in FY27 are expected to peak at
c.€0.7 billion, which includes integration costs of
c.€0.4 billion related to the VodafoneThree
merger.
|
€billion
|
|
Adjusted
EBITDAaL
|
Adjusted
FCF
|
|
FY26 actual – reported basis
|
|
11.4
|
2.6
|
|
Impact
of exchange rates
|
|
(0.1)
|
(0.1)
|
|
Remove
impact of Türkiye hyperinflation accounting
|
|
0.1
|
–
|
|
Impact
of M&A transactions1
|
|
–
|
(0.1)
|
|
FY26 re-based2,3
|
|
11.4
|
2.4
|
|
Growth
|
|
0.5
– 0.8
|
0.2
– 0.5
|
|
Original FY27 guidance2,4
|
|
11.9 – 12.2
|
2.6 – 2.9
|
|
9-month
FY27 Safaricom consolidation impact5
|
|
1.1
|
–
|
|
Updated FY27 guidance provided in July2,4
|
|
13.0 – 13.3
|
2.6 – 2.9
|
|
|
|
|
|
|
Upgraded FY27 guidance2,4
|
|
13.2 – 13.4
|
2.8 – 3.0
|
|
Implied organic growth
|
|
c.6% – 8%
|
c.17% – 25%
|
Notes:
1.
M&A
transactions include the impact of the disposal of
VodafoneZiggo
2.
Excluding the
impact of hyperinflation accounting in
Türkiye.
3.
The FY26
rebased outcome is derived by applying FY27 guidance foreign
exchange rates.
4.
The FY27
guidance reflects the following foreign exchange rates: €1:
GBP 0.87; €1: ZAR 19.60; €1: TRY 53.07; €1: EGP
62.53; €1: KES 159.66. The guidance assumes no material
change to the structure of the Group.
5.
The
transaction is subject to a legal challenge. See note 11
‘Contingent liabilities and legal proceedings’ for
further information.
|
Financial Review
|
Financial results
− Total
revenue: Increased 11.4% to
€21.9 billion (H1 FY26: €19.6 billion), driven by
strong service revenue growth and the consolidation of Safaricom,
VodafoneThree, and Telekom Romania. This was partially offset by
adverse foreign exchange movements.
− Service
revenue: Grew 12.8% to
€18.4 billion (H1 FY26: €16.3 billion), and increased
5.8% on an organic basis, with growth across all segments. Vodafone
Business delivered strong organic service revenue growth of 5.8%,
driven by double-digit growth in digital services in Europe, as
well as an improvement in core connectivity.
− Adjusted
EBITDAaL: Increased 12.6 % to €6.5 billion (H1 FY26:
€5.7 billion), and 6.4% on an organic basis driven by service
revenue growth and improved operating leverage. Adjusted EBITDAaL
margin improved 0.5 percentage points on an organic basis to
29.5%.
− Loss/profit
for financial period: We
reported a loss of €3.6 billion (H1 FY26: profit of
€1.1 billion), due to non-cash accounting charges including
an impairment in Germany (€4.85 billion), primarily driven by
adverse changes in interest rates, and a write-down of deferred tax
assets in the UK (€2.2 billion) following the buyout of CKHGT
from VodafoneThree. These items were partially offset by a non-cash
accounting gain arising from the Safaricom transaction (€3.0
billion), included in Other income.
− Earnings
per share: Basic loss per share
was 20.75 eurocents, compared to basic earnings per share of 3.38
eurocents in H1 FY26. Adjusted basic earnings per share was 1.48
eurocents compared to earnings per share of 6.92 eurocents in the
prior year.
|
|
|
H1 FY271
|
H1 FY26
|
Reported
|
|
|
|
€m
|
€m
|
change %
|
|
Revenue
|
21,853
|
19,609
|
11.4
|
|
|
-
Service revenue
|
18,409
|
16,327
|
12.8
|
|
|
-
Other revenue
|
3,444
|
3,282
|
|
|
|
Adjusted EBITDAaL2,3
|
6,451
|
5,728
|
12.6
|
|
|
Restructuring
costs
|
(317)
|
(186)
|
|
|
|
Interest
on lease liabilities4
|
340
|
292
|
|
|
|
(Loss)/gain
on disposal of property, plant and equipment and intangible
assets
|
(9)
|
155
|
|
|
|
Depreciation
and amortisation of owned assets
|
(4,492)
|
(4,095)
|
|
|
|
Share
of results of equity accounted associates and joint
ventures
|
25
|
182
|
|
|
|
Impairment
charge
|
(4,850)
|
–
|
|
|
|
Other
income
|
3,369
|
86
|
|
|
|
Operating profit
|
517
|
2,162
|
(76.1)
|
|
|
Investment
and other income
|
288
|
1,085
|
|
|
|
Financing
costs
|
(1,178)
|
(1,134)
|
|
|
|
(Loss)/profit before taxation
|
(373)
|
2,113
|
|
|
|
Income
tax expense
|
(3,224)
|
(1,061)
|
|
|
|
(Loss)/profit for the financial period
|
(3,597)
|
1,052
|
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
-
Owners of the parent
|
(4,789)
|
829
|
|
|
|
-
Non-controlling interests
|
1,192
|
223
|
|
|
|
(Loss)/profit for the financial period
|
(3,597)
|
1,052
|
|
|
|
|
|
|
|
|
|
Basic
(loss)/earnings per share
|
(20.75)c
|
3.38c
|
|
|
|
Adjusted
basic earnings per share2
|
1.48c
|
6.92c
|
|
|
Further information is available in a spreadsheet at
investors.vodafone.com/results
Notes:
1.
The H1 FY27
results reflect average foreign exchange rates of €1: GBP
0.86, €1: ZAR 18.95, €1: TRY 54.03 €1: EGP 59.52,
and €1: KES 149.73.
2.
Adjusted
EBITDAaL and Adjusted basic earnings per share are non-GAAP
measures. See page 49 for more
information.
3.
Includes
depreciation on leased assets of €1,960 million (H1 FY26:
€1,735 million).
4.
Reversal
of interest on lease liabilities included within Adjusted EBITDAaL
under the Group’s definition of that metric, for
re-presentation in financing costs.
Cash flow, funding & dividend
− Inflow
from operating activities: Increased 24.8% to €6.4 billion reflecting
higher cash generated by operations.
− Adjusted
free cash flow: An outflow of
€0.4 billion, representing an improvement of €0.1
billion compared to the prior year. This primarily reflects higher
Adjusted EBITDAaL and lower working capital which more than offset
higher capital additions and higher dividends paid following the
Safaricom transaction.
− Net
debt: Increased to €33.5 billion compared to
€25.4 billion as at 31 March 2026. This was driven by a free
cash outflow, together with outflows in relation to acquisitions
and disposals which include the buyout of the remaining 49% of
VodafoneThree, the purchase of an additional 15% stake in Safaricom
and net debt acquired in the Safaricom
transaction.
− Current
liquidity: Cash and cash equivalents and short-term
investments totalled €8.4 billion (€12.4 billion as at
31 March 2026). This includes €0.1 billion of net collateral
which has been posted to Vodafone from counterparties as a result
of positive mark-to-market movements on derivative instruments
(€0.5 billion as at 31 March 2026).
− Shareholder
returns: The interim dividend
is set at 50% of the prior full year dividend. Interim dividend per
share increased 2.5% year-on-year to 2.306 eurocents (H1 FY26: 2.25
eurocents), in line with our progressive dividend policy. The
ex-dividend date for the interim dividend is 19 November 2026 for
ordinary shareholders and 20 November 2026 for ADR holders, the
record date is 20 November 2026 and the dividend is payable on 3
February 2027.
|
|
|
H1 FY27
|
H1 FY26
|
Reported
|
|
Cash flow and funding
|
€m
|
€m
|
change %
|
|
|
Inflow
from operating activities
|
6,354
|
5,092
|
24.8
|
|
|
Outflow
from investing activities
|
(3,349)
|
(1,874)
|
(78.7)
|
|
|
Outflow
from financing activities
|
(6,937)
|
(6,918)
|
(0.3)
|
|
|
Net cash outflow
|
(3,932)
|
(3,700)
|
(6.3)
|
|
|
Cash
and cash equivalents at the beginning of the financial
period
|
8,913
|
10,893
|
|
|
|
Exchange
gain/(loss) on cash and cash equivalents
|
65
|
(192)
|
|
|
|
Cash and cash equivalents at the end of the financial
period
|
5,046
|
7,001
|
|
|
|
|
|
|
|
|
|
Borrowings less cash and cash equivalents
|
(51,682)
|
(44,368)
|
(16.5)
|
|
|
|
|
|
|
|
|
|
|
H1 FY27
|
H1 FY26
|
Reported
|
|
|
|
€m
|
€m
|
change %
|
|
Adjusted free cash flow1
|
(440)
|
(583)
|
24.5
|
|
|
Licences
and spectrum
|
(21)
|
(45)
|
|
|
|
Restructuring
costs including working capital movements
|
(320)
|
(122)
|
|
|
|
Integration
capital additions
|
(64)
|
(21)
|
|
|
|
Free cash flow1
|
(845)
|
(771)
|
(9.6)
|
|
|
|
|
|
|
|
|
Net debt1
|
(33,473)
|
(25,939)
|
(29.0)
|
|
Note:
1.
Adjusted
free cash flow, Free cash flow and Net debt are non-GAAP measures.
See page 49 for more information.
|
Segment performance
|
|
|
Geographic performance summary
|
|
Total revenue
|
Service revenue
|
Adjusted
EBITDAaL1
|
Adjusted
EBITDAaL
margin1
|
Capital additions
|
||||||
|
H1 FY27
|
H1 FY26
|
H1 FY27
|
H1 FY26
|
H1 FY27
|
H1 FY26
|
H1 FY27
|
H1 FY26
|
H1 FY27
|
H1 FY26
|
||
|
€m
|
€m
|
€m
|
€m
|
€m
|
€m
|
%
|
%
|
€m
|
€m
|
||
|
Germany
|
6,053
|
5,996
|
5,483
|
5,425
|
2,139
|
2,191
|
35.3
|
36.5
|
949
|
971
|
|
|
UK
|
4,858
|
4,409
|
4,040
|
3,664
|
984
|
884
|
20.3
|
20.0
|
667
|
562
|
|
|
Other
Europe2
|
2,912
|
2,804
|
2,520
|
2,415
|
772
|
835
|
26.5
|
29.8
|
343
|
333
|
|
|
Türkiye
|
1,836
|
1,601
|
1,523
|
1,327
|
531
|
485
|
28.9
|
30.3
|
252
|
177
|
|
|
Africa
|
5,427
|
3,950
|
4,504
|
3,183
|
2,058
|
1,347
|
37.9
|
34.1
|
703
|
456
|
|
|
Common
Functions3
|
868
|
970
|
404
|
388
|
(33)
|
(14)
|
|
|
406
|
301
|
|
|
Eliminations
|
(101)
|
(121)
|
(65)
|
(75)
|
–
|
–
|
|
|
–
|
–
|
|
|
Group
|
21,853
|
19,609
|
18,409
|
16,327
|
6,451
|
5,728
|
29.5
|
29.2
|
3,320
|
2,800
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Downloadable
performance information is available at: investors.vodafone.com/results
|
|||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service revenue growth
|
FY26
|
FY27
|
|||||||||
|
Q1
|
Q2
|
H1
|
Q3
|
Q4
|
H2
|
Total
|
Q1
|
Q2
|
H1
|
||
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
||
|
Germany
|
(3.2)
|
0.5
|
(1.4)
|
0.7
|
2.0
|
1.4
|
–
|
1.9
|
0.2
|
1.1
|
|
|
UK
|
15.2
|
38.0
|
26.7
|
31.1
|
31.5
|
31.3
|
29.0
|
20.8
|
1.7
|
10.3
|
|
|
Other
Europe2
|
0.3
|
0.1
|
0.2
|
3.5
|
3.0
|
3.3
|
1.7
|
4.0
|
4.7
|
4.3
|
|
|
Türkiye
|
22.1
|
18.7
|
20.3
|
(13.5)
|
36.9
|
8.5
|
13.8
|
13.8
|
15.6
|
14.8
|
|
|
Africa
|
7.3
|
8.4
|
7.9
|
8.2
|
7.3
|
7.7
|
7.8
|
15.1
|
66.7
|
41.5
|
|
|
Group
|
5.3
|
10.8
|
8.1
|
7.3
|
12.0
|
9.6
|
8.8
|
9.8
|
15.5
|
12.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Organic service revenue growth1
|
FY26
|
FY27
|
|||||||||
|
Q1
|
Q2
|
H1
|
Q3
|
Q4
|
H2
|
Total
|
Q1
|
Q2
|
H1
|
||
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
%
|
||
|
Germany
|
(3.2)
|
0.5
|
(1.4)
|
0.7
|
1.3
|
1.0
|
(0.2)
|
1.2
|
(0.5)
|
0.4
|
|
|
UK
|
0.9
|
1.2
|
1.1
|
(0.5)
|
(0.2)
|
(0.4)
|
0.3
|
0.6
|
1.2
|
0.9
|
|
|
Other
Europe2
|
0.2
|
(0.5)
|
(0.1)
|
1.2
|
1.2
|
1.2
|
0.5
|
1.0
|
1.8
|
1.4
|
|
|
Türkiye
|
63.8
|
48.4
|
55.6
|
38.5
|
33.7
|
36.1
|
45.2
|
30.2
|
35.2
|
32.8
|
|
|
Africa
|
13.8
|
13.5
|
13.7
|
13.5
|
10.9
|
12.2
|
12.9
|
12.6
|
14.0
|
13.4
|
|
|
Group
|
5.5
|
5.8
|
5.7
|
5.4
|
5.1
|
5.2
|
5.4
|
5.2
|
6.4
|
5.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Group profitability
|
|
FY26
|
FY27
|
||||||||
|
|
Q1
|
Q2
|
H1
|
Q3
|
Q4
|
H2
|
Total
|
Q1
|
Q2
|
H1
|
|
|
Operating
profit/(loss)
|
€m
|
1,015
|
1,147
|
2,162
|
483
|
199
|
682
|
2,844
|
3,873
|
(3,356)
|
517
|
|
Adjusted
EBITDAaL1
|
€m
|
2,748
|
2,980
|
5,728
|
2,816
|
2,807
|
5,623
|
11,351
|
2,932
|
3,519
|
6,451
|
|
Adjusted
EBITDAaL margin1
|
%
|
29.3
|
29.1
|
29.2
|
26.9
|
27.0
|
27.0
|
28.1
|
28.5
|
30.4
|
29.5
|
|
Organic
Adjusted EBITDAaL growth1
|
%
|
4.9
|
8.7
|
6.8
|
2.3
|
2.3
|
2.3
|
4.5
|
6.2
|
6.5
|
6.4
|
Notes:
1.
Organic
service revenue growth, Group Adjusted EBITDAaL, Group Adjusted
EBITDAaL margin and Organic Group Adjusted EBITDAaL growth are
non-GAAP measures. See page 49 for more
information.
2.
Other Europe
markets comprise Portugal, Ireland, Greece, Romania, Czech Republic
and Albania.
3.
Capital
additions includes software arrangements managed centrally on
behalf of the Group.
|
Germany ⫶ Stable
service revenue despite mobile pressure and TV decline
|
|||||
|
|
|
|
|
|
|
|
30%
|
|
€6.1bn
|
|
0.4%
|
|
|
of
Group service revenue
|
Total
revenue
|
Organic
service revenue growth
|
|||
|
|
|
|
|
|
|
|
33%
|
|
€2.1bn
|
|
(3.2%)
|
|
|
of
Group Adjusted EBITDAaL
|
Adjusted
EBITDAaL
|
Organic
Adjusted EBITDAaL growth
|
|||
|
|
|
|
|
|
|
|
|
|
H1 FY27
|
H1 FY26
|
Reported
|
Organic
|
|
|
€m
|
€m
|
growth %
|
growth %1
|
|
|
Total
revenue
|
6,053
|
5,996
|
1.0
|
|
|
|
-
Service revenue
|
5,483
|
5,425
|
1.1
|
0.4
|
|
|
-
Other revenue
|
570
|
571
|
|
|
|
|
Adjusted
EBITDAaL
|
2,139
|
2,191
|
(2.4)
|
(3.2)
|
|
|
Adjusted
EBITDAaL margin
|
35.3%
|
36.5%
|
|
|
|
Note:
1.
Organic
growth is a non-GAAP measure. See page 49 for more
information.
Growth
Total revenue increased 1.0% to €6.1 billion as a result of
service revenue growth and the consolidation of Skaylink following
the completion of the acquisition in December 2025.
Service revenue increased 1.1%, and on an organic basis service
revenue grew 0.4% (Q1: 1.2%, Q2: -0.5%), with higher wholesale
revenue and fixed line growth, reflecting growing broadband ARPU in
Consumer and digital services growth in Business. These factors
were partially offset by the ongoing TV decline and continued
mobile ARPU pressure. The quarterly slowdown was primarily driven
by higher wholesale revenue in the prior year
period.
Mobile service revenue declined 0.4% in H1 (Q1: 1.2%, Q2: -1.9%),
as continued ARPU pressure and a lower customer base, due to
ongoing competitive intensity in the market, was only partially
offset by higher wholesale revenue. The quarterly slowdown was
driven by the higher contribution from wholesale revenue in the
prior year period, as the migration of 1&1 customers onto our
nationwide 5G network neared completion last year, as well as the
phasing of service provider payments in FY26.
Fixed service revenue increased 2.4%, and on an organic basis grew
1.1% (Q1: 1.3%, Q2: 0.9%), driven by Business digital services and
Consumer broadband ARPU growth, which was supported by our
value-focused retail pricing actions, resulting in a 25% broadband
ARPU increase from new customers (Q1: +30%; Q2: +20%). This was
partially offset by the ongoing TV decline, as well as the impact
of a court ruling in relation to historical broadband price
increases. Following this, we have ceased recognising the revenue
associated with the historical €5 per month price increases
for the 2.5 million broadband customers still on legacy
contracts.
Vodafone Business service revenue increased 6.9% and on an organic
basis, grew 3.7% (Q1: 4.0%, Q2 3.3%), as demand for digital
services, particularly software-as-a-service (‘SaaS’)
and cloud & security services, was partially offset by ongoing
pressure in core connectivity.
Adjusted EBITDAaL declined 2.4%, and on an organic basis Adjusted
EBITDAaL decreased 3.2%, including a c. -2.0 percentage point
impact of a legal provision related to historical broadband price
increases. We have also seen an increase in variable costs from
Business digital services growth, whilst customer costs and
operating expenses remained broadly flat. The Adjusted EBITDAaL
margin was 1.2 percentage points lower year-on-year to 35.3%, and
on an organic basis was 1.3 percentage points lower.
Customers
Due to continued competitive intensity in the mobile market, our
contract customer base declined by 75,000 in H1 (Q1: -85,000, Q2:
10,000), including 34,000 Business disconnections. However, our
branded Consumer customer base increased, supported by our enhanced
propositions and focus on customer experience, with customer
satisfaction results continuing to improve. We connected a further
5.5 million IoT devices, driven by continued good demand from the
automotive sector.
Our broadband customer base declined by 198,000 in H1 (Q1: -98,000,
Q2: -100,000), including the loss of 119,000 customers on our
gigabit network (Q1: -62,000, Q2: -57,000). The decline was
primarily due to our focus on value optimisation as we continue to
drive service revenue growth through ARPU.
We are the largest provider of fixed line gigabit connectivity, as
we market gigabit speeds to over 75% of German homes with 6.5
million marketable fibre households beyond our own cable footprint
of 25 million households. Our OXG joint venture’s buildout is
continuing to progress with 1.1 million homes passed and we now
have construction orders in place for 3.6 million
households.
Our TV customer base declined by 115,000 (Q1: -55,000, Q2:
-60,000). The structural decline in demand for standalone linear TV
services was partially offset by our strategy to bundle basic TV
with our broadband services.
|
UK ⫶ Executing on
upgraded synergy targets
|
|||||
|
|
|
|
|
|
|
|
22%
|
|
€4.9bn
|
|
0.9%
|
|
|
of
Group service revenue
|
Total
revenue
|
Organic
service revenue growth
|
|||
|
|
|
|
|
|
|
|
15%
|
|
€1.0bn
|
|
5.9%
|
|
|
of
Group Adjusted EBITDAaL
|
Adjusted
EBITDAaL
|
Organic
Adjusted EBITDAaL growth
|
|||
|
|
|
|
|
|
|
|
|
|
H1 FY27
|
H1 FY26
|
Reported
|
Organic
|
|
|
€m
|
€m
|
growth %
|
growth %1
|
|
|
Total
revenue
|
4,858
|
4,409
|
10.2
|
|
|
|
-
Service revenue
|
4,040
|
3,664
|
10.3
|
0.9
|
|
|
-
Other revenue
|
818
|
745
|
|
|
|
|
Adjusted
EBITDAaL
|
984
|
884
|
11.3
|
5.9
|
|
|
Adjusted
EBITDAaL margin
|
20.3%
|
20.0%
|
|
|
|
Note:
1.
Organic
growth is a non-GAAP measure. See page 49 for more
information.
Growth
Total revenue increased 10.2% to €4.9 billion due to the
consolidation of Three UK’s financial results following the
completion of the merger on 31 May 2025. Service revenue increased
10.3%, and organic service revenue grew 0.9% (Q1: 0.6%, Q2: 1.2%),
driven by strong fixed line growth and higher mobile wholesale
revenue. The acceleration in quarterly growth was due to an
improvement in Business and higher revenue from visitors roaming on
our network.
Mobile service revenue increased 12.2%. Organic growth in mobile
service revenue was broadly stable year-on-year (Q1: -0.7%, Q2:
0.6%), as strong wholesale revenue growth was offset by ARPU
pressure, largely due to accounting impacts relating to price rises
and Business contract renewals.
Fixed service revenue increased 3.2%, and organic growth in fixed
service revenue was 4.8% (Q1: 6.1%, Q2: 3.5%), driven by the
continued commercial momentum in Consumer broadband, and Business
returning to growth following the planned managed services contract
terminations in the prior year. The slowdown in quarterly growth
was due to lapping a project milestone delivery in the prior
year.
Vodafone Business service revenue increased 1.1%. On an organic
basis, Vodafone Business service revenue decreased
0.2%
(Q1: -0.7%, Q2: 0.3%), as growth in digital services, supported by
our software-defined networks (‘SDN’),
software-as-a-service (‘SaaS’) and digital
communications products, was offset by continued mobile ARPU
pressure from contract renewals. The step-up in quarterly growth
was supported by an improvement in mobile core
connectivity.
Adjusted EBITDAaL increased 11.3%, and on an organic basis,
Adjusted EBITDAaL increased 5.9%, as revenue growth, synergy
delivery and ongoing cost efficiencies more than offset higher
operating expenses from inflation. We have now successfully
delivered over €50 million cost synergies, and we are on
track to deliver against our upgraded cost and capex synergy target
of £0.8 billion by FY30 and £1.0 billion by FY32. The
Adjusted EBITDAaL margin increased 0.3 percentage points
year-on-year to 20.3%, and on an organic basis grew 1.2 percentage
points year-on-year.
Customers
Our mobile contract customer base declined by 62,000 during H1 (Q1:
-48,000, Q2: -14,000) including the disconnection of 40,000 very
low value Business SIMs. Our prepaid brands, VOXI and SMARTY,
continued to compete well in the market, with 166,000 customer
additions in H1 (Q1: 34,000, Q2: 132,000). Customer loyalty has
been improving across all our Consumer brands, supported by our
best-in-class customer experience, with Consumer contract churn
reducing 0.6 percentage points year-over-year. The Vodafone brand
continues to hold the number one position on Consumer NPS, with
Vodafone Business returning to number one in Q2. In September, we
launched Vodafone SuperMobile for consumers and business customers,
a new market-leading proposition designed to further differentiate
our mobile offering, supporting the monetisation of our network
quality.
Our broadband customer base increased by 76,000 in H1 (Q1: 34,000,
Q2: 42,000) and we added 54,000 fixed wireless access
(‘FWA’) customers in H1 (Q1: 23,000, Q2: 31,000),
reported in the mobile segment. Through our strategic partnerships,
we are the largest fibre-to-the-home (‘FTTH’) provider
in the UK, offering gigabit speeds to 26.5 million households. In
May 2026, we launched our new Vodafone FWA 5G Broadband product,
offering fast and reliable broadband services to an additional 3.2
million homes outside our fibre footprint.
In October 2026, we launched Vodafone TV for Consumer customers,
further strengthening our converged offering across mobile,
broadband and entertainment and supporting customer engagement and
loyalty.
|
Other Europe1 ⫶
Consistent service revenue
growth
|
|||||
|
|
|
|
|
|
|
|
14%
|
|
€2.9bn
|
|
1.4%
|
|
|
of
Group service revenue
|
Total
revenue
|
Organic
service revenue growth
|
|||
|
|
|
|
|
|
|
|
12%
|
|
€0.8bn
|
|
(4.6%)
|
|
|
of
Group Adjusted EBITDAaL
|
Adjusted
EBITDAaL
|
Organic
Adjusted EBITDAaL growth
|
|||
|
|
|
|
|
|
|
|
|
|
H1 FY27
|
H1 FY26
|
Reported
|
Organic
|
|
|
€m
|
€m
|
growth %
|
growth %2
|
|
|
Total
revenue
|
2,912
|
2,804
|
3.9
|
|
|
|
-
Service revenue
|
2,520
|
2,415
|
4.3
|
1.4
|
|
|
-
Other revenue
|
392
|
389
|
|
|
|
|
Adjusted
EBITDAaL
|
772
|
835
|
(7.5)
|
(4.6)
|
|
|
Adjusted
EBITDAaL margin
|
26.5%
|
29.8%
|
|
|
|
Notes:
1.
Other Europe
markets comprise Portugal, Ireland, Greece, Romania, Czech Republic
and Albania.
2.
Organic
growth is a non-GAAP measure. See page 49 for more
information.
Growth
Total revenue increased 3.9% to €2.9 billion, supported by
the consolidation of Telekom Romania Mobile Communications S.A
following the completion of the acquisition in October 2025.
Service revenue grew 4.3%, and organic growth in service revenue
was 1.4% (Q1: 1.0%, Q2: 1.8%) as growth in Albania, Czech Republic,
Ireland and Greece was partially offset by continued ARPU pressure
in Portugal and Romania.
In Portugal, service revenue declined as a result of as a result of
the continued competitive intensity in the mobile market. Despite
this, our mobile contract customer base continues to
grow.
In Ireland, service revenue increased, driven by strong growth in
fixed service revenue, supported by a larger customer base and
Business, including core connectivity and digital services
growth.
In Greece, service revenue increased as a result of growth in
mobile and fixed service revenue, with a Business digital services
acceleration driven by public sector project delivery, including
programmes funded through the European Recovery and Resilience
Facility which closed in September 2026. Growth in mobile was
supported by both contract customer base and ARPU
growth.
Vodafone Business service revenue increased 7.3% with organic
growth of 7.0% (Q1: 4.0%, Q2: 9.9%), mainly driven by public sector
project delivery in Greece and strong digital services
growth.
Adjusted EBITDAaL decreased 7.5% and on an organic basis decreased
4.6%, due to a legal one-off in the prior period in Portugal. The
Adjusted EBITDAaL margin decreased 3.3 percentage points
year-on-year to 26.5%, and on an organic basis declined 1.3
percentage points year-on-year.
Customers
We lost 65,000 mobile contract customers (Q1: -52,000, Q2: -13,000)
across our six markets, driven by Romania, while our broadband
customer base remained stable (Q1: -2,000, Q2: 2,000).
In Portugal, we added 73,000 contract customers in mobile and 7,000
in fixed broadband as we maintained our market-leading customer
experience position. We continued to drive convergence, with 61.9%
of our broadband customers now choosing additional TV or mobile
products.
In Greece, the mobile contract base grew by 33,000, though fixed
broadband customers declined by 6,000. Our market-leading customer
experience supported an increase in the share of promoters across
our customer base and resulted in improved loyalty year-on-year
with mobile contract churn improving 0.4pp in Q2.
In Ireland, our mobile contract customer base declined by 6,000 and
the broadband customer base increased by 8,000. In April 2026, we
launched our customer service initiative, ‘Ask Once’,
further supporting customer experience in Ireland. Through our
wholesale partnerships, including our fibre joint venture, SIRO, we
now cover 2.0 million households in Ireland with our gigabit
speeds.
|
Türkiye ⫶
Continued strong service revenue and Adj. EBITDAaL growth in euro
terms
|
|||||
|
|
|
|
|
|
|
|
8%
|
|
€1.8bn
|
|
32.8%
|
|
|
of
Group service revenue
|
Total
revenue
|
Organic
service revenue growth
|
|||
|
|
|
|
|
|
|
|
8%
|
|
€0.5bn
|
|
32.7%
|
|
|
of
Group Adjusted EBITDAaL
|
Adjusted
EBITDAaL
|
Organic
Adjusted EBITDAaL growth
|
|||
|
|
|
|
|
|
|
|
|
|
H1 FY27
|
H1 FY26
|
Reported
|
Organic
|
|
|
€m
|
€m
|
growth %
|
growth %1
|
|
|
Total
revenue
|
1,836
|
1,601
|
14.7
|
|
|
|
-
Service revenue
|
1,523
|
1,327
|
14.8
|
32.8
|
|
|
-
Other revenue
|
313
|
274
|
|
|
|
|
Adjusted
EBITDAaL
|
531
|
485
|
9.5
|
32.7
|
|
|
Adjusted
EBITDAaL margin
|
28.9%
|
30.3%
|
|
|
|
Note:
1.
Organic
growth is a non-GAAP measure. See page 49 for more
information.
Türkiye was designated as a hyperinflationary economy on 1
April 2022 in line with IAS 29 ‘Financial Reporting in
Hyperinflationary Economies’. See note 1 ‘Basis of
preparation’ in the unaudited condensed consolidated
financial statements for further information.
Organic growth metrics exclude the impact of the hyperinflation
adjustment and foreign exchange translation in Türkiye. See
page 30 for more information.
Growth
Total revenue increased 14.7% to €1.8 billion, with service
revenue growth partially offset by depreciation of the local
currency versus the euro.
Service revenue increased 32.8% (Q1: 30.2%, Q2: 35.2%) on an
organic basis. As reported under IAS 29, service revenue growth in
euro terms increased 14.8% (Q1: 13.8%, Q2: 15.6%). Excluding the
impact of hyperinflationary accounting adjustments, service revenue
increased 12.7% in euro terms (Q1: 8.3%, Q2: 17.0%), driven by
ongoing price actions, value accretive base management, increased
data usage and strong growth in Business.
Vodafone Business service revenue increased 40.0% (Q1: 40.4%, Q2:
39.6%) on an organic basis, supported by growth in mobile and fixed
connectivity, and strong demand for our digital services products,
including data centre usage. In September 2026, we launched our
sixth data centre with an initial 4MW capacity, scaling to 20MW.
This new data centre will help further strengthen the
country’s cloud infrastructure and data sovereignty,
providing data storage, cloud computing, connectivity, managed
services and cyber security solutions to business and public sector
customers.
Adjusted EBITDAaL increased 32.7% on an organic basis, supported by
strong service revenue growth and ongoing cost efficiency actions
partially offset by inflationary pressures. Adjusted EBITDAaL
increased 9.5% in euro terms. The Adjusted EBITDAaL margin
decreased 1.4 percentage points year-on-year to 28.9%, and on an
organic basis was stable year-on-year.
Customers
We added 222,000 mobile contract customers, including migrations of
prepaid customers. Vodafone Türkiye launched 5G services in
April 2026 and now has the widest 5G coverage in the country,
covering more than 30,000 km² across all 81 provinces.
Following the launch, our 5G customer base has grown to over 7
million customers, and we have expanded our offering to include 5G
fixed wireless access (‘FWA’)
propositions.
Our ‘Ask Once’ initiative continues to support customer
experience improvements, resulting in a 3.0 percentage point
increase in the share of promoters across our customer base. As
part of the initiative, we are committed to resolving queries
within 24-hours and we have achieved a 96% resolution
rate.
Customer loyalty has improved 13.0 percentage points year-over-year
and in its first year, our customer loyalty platform, Vodafone
Happy, received more than 300 million visits.
|
Africa ⫶
Double-digit service revenue and Adj. EBITDAaL growth
|
|||||
|
|
|
|
|
|
|
|
24%
|
|
€5.4bn
|
|
13.4%
|
|
|
of
Group service revenue
|
Total
revenue
|
Organic
service revenue growth
|
|||
|
|
|
|
|
|
|
|
32%
|
|
€2.1bn
|
|
18.0%
|
|
|
of
Group Adjusted EBITDAaL
|
Adjusted
EBITDAaL
|
Organic
Adjusted EBITDAaL growth
|
|||
|
|
|
|
|
|
|
|
|
|
H1 FY271
|
H1 FY26
|
Reported
|
Organic
|
|
|
€m
|
€m
|
growth %
|
growth %2
|
|
|
Total
revenue
|
5,427
|
3,950
|
37.4
|
|
|
|
-
Service revenue
|
4,504
|
3,183
|
41.5
|
13.4
|
|
|
-
Other revenue
|
923
|
767
|
|
|
|
|
Adjusted
EBITDAaL
|
2,058
|
1,347
|
52.8
|
18.0
|
|
|
Adjusted
EBITDAaL margin
|
37.9%
|
34.1%
|
|
|
|
Notes:
1.
H1
FY27 includes the financial results of Safaricom on a 3-month fully
consolidated basis. See page 29 for more information.
2.
Organic
growth is a non-GAAP measure. See page 49 for more
information.
Growth
Total revenue increased 37.4% to €5.4 billion due to strong
service revenue growth and the consolidation of Safaricom’s
financial results from 1 July 2026. Service revenue increased 41.5%
and organic service revenue growth was 13.4% (Q1: 12.6%, Q2:
14.0%), with growth in all of Vodacom’s markets.
In South Africa, service revenue increased due to an improvement in
prepaid mobile. This was driven by an acceleration in mobile data
usage, supported by increasing smartphone adoption and our
investment in network quality. Service revenue was also supported
by financial services and Business digital services growth.
Financial services continued to perform well with organic growth of
5.9% to €101 million, supported by strong demand for
insurance products.
Safaricom delivered strong service revenue growth, with
double-digit growth in Kenya supported by strong M-Pesa revenue
growth, a larger customer base and higher demand for data. M-Pesa
revenue increased 13.7% driven by growth in transaction volume and
customer base expansion. Service revenue in Ethiopia grew strongly
as we continue to build operational scale and accelerate the
rollout of radio sites.
In Egypt, service revenue growth was maintained well above
inflation and in euro terms. The result was driven by strong data
demand, sustained customer base growth and financial services.
Service revenue was also supported by higher ARPU as a result of
further pricing actions implemented in May 2026. Our financial
services product, Vodafone Cash continued to grow at a strong rate,
with revenue increasing 74.3% on an organic basis to €113
million, now representing 10.1% of service revenue.
In Vodacom’s international markets, service revenue growth
was supported by good commercial momentum across all markets, with
sustained strong growth of M-Pesa and data revenue, driven by
smartphone adoption. M-Pesa revenue increased 23.4% on an organic
basis to €285 million and now represents 31.3% of service
revenue.
Vodacom Business service revenue grew 36.5% with organic growth of
9.1% (Q1: 8.7%, Q2: 9.3%), driven by strong demand for core
connectivity and digital services.
Adjusted EBITDAaL increased 52.8% also due to the consolidation of
Safaricom from 1 July 2026. On an organic basis, Adjusted EBITDAaL
increased 18.0% due to service revenue growth, our ongoing cost
efficiency initiatives, and the lapping of prior year one-off
impact in South Africa. The Adjusted EBITDAaL margin increased 3.8
percentage points year-on-year to 37.9%, and on an organic basis
increased 1.6 percentage points year-on-year.
Customers
In South Africa, we added 120,000 mobile contract customers. We now
have a mobile contract customer base of 7.1 million and a prepaid
customer base of 41.9 million. Across our active customer base,
71.6% of our mobile customers use our data services. Our broadband
customer base continued to grow, and we now provide fibre
connectivity to 3.2 million households through Maziv, our open
access fibre joint venture. Customers using our Vodapay super-app
continued to increase, with good demand for our insurance, payments
and lending marketplace services.
We added 2.8 million customers across Safaricom, and our customer
base is now 79.0 million, with 67.9% of active mobile customers
using our data services. Our M-Pesa customer base increased to 44.5
million active users.
In Egypt, we added 33,000 mobile contract customers and 2.1 million
prepaid customers, supported by our market-leading customer
experience and NPS leadership. Vodafone Cash reached 16.7 million
users, including 2 million new customers in H1.
In Vodacom’s international markets, we added 3 million mobile
customers, and our customer base is now 70.2 million, with 67.4% of
active mobile customers using our data services. Smartphone
adoption continued to increase, with a 42.6% penetration during the
period. Our M-Pesa customer base increased by 1.2 million and now
totals 30.5 million active users.
|
Vodafone Investments
|
|
|
|
|
|
|
|
|
|
Associates and joint ventures
|
H1 FY27
|
H1 FY26
|
|
|
€m
|
€m
|
||
|
Vantage
Towers (Oak Holdings 1 GmbH)
|
12
|
125
|
|
|
VodafoneZiggo
Group Holding B.V.
|
–
|
(60)
|
|
|
Safaricom
PLC
|
76
|
115
|
|
|
Maziv
Proprietary Limited
|
6
|
–
|
|
|
Other1
(including TPG Telecom Limited)
|
(69)
|
2
|
|
|
Share of results of equity accounted associates and joint
ventures
|
25
|
182
|
|
Notes:
1.
The
Group’s investment in Vodafone Idea Limited
(‘VIL’) was reduced to €nil in the year ended 31
March 2020 and the Group has not recorded any profit or loss in
respect of its share of VIL’s results since that
date.
2.
Excluding
the economic benefit of 50% of Telenet's shareholding in the
fibre-to-the-home network infrastructure vehicle Wyre B.V., which
will be retained by Liberty Global.
Vantage Towers Joint Venture – 44.7% ownership
Total revenue increased 7.1% to €689 million, supported by
1,210 net new tenancies and 343 new macro sites. As a result, the
tenancy ratio increased to 1.57x (FY26: 1.55x). During H1 FY27,
Vantage Towers distributed €100 million (H1 FY26: €156
million) in dividends to Vodafone.
VodafoneZiggo Group Holding B.V. – 50.0% ownership until 30
July 2026
On 31 July 2026, we completed the sale of our interests in
VodafoneZiggo Holding B.V. to Liberty Global Ltd for €1.0
billion in cash and a 10% equity stake in Ziggo Group, which owns
100% of both VodafoneZiggo and Liberty Global's Belgian subsidiary,
Telenet Group Holding2
As a part of the transaction, Vodafone
and Liberty Global have also agreed that Vodafone will continue to
provide certain services, including brand licensing, to
VodafoneZiggo with expected charges of €625 million over the
next 10 years. See note 7 ‘Joint ventures and
associates’ in the unaudited condensed consolidated financial
statements for further information. Our investment in Ziggo Group
is now accounted for as an investment at fair value through profit
and loss. During H1 FY27, VodafoneZiggo distributed nil (H1 FY26:
nil) in dividends to Vodafone and nil in interest (H1 FY26:
€26 million in interest).
Safaricom PLC (Kenya) – 37.5% ownership until 30 June
2026
On 30 June 2026, we announced that Vodacom Group Ltd
(‘Vodacom’) had completed the acquisition of an
effective 20% of the issued share capital in Safaricom PLC
(‘Safaricom’). Vodacom acquired 15% from the Government
of Kenya for a cash consideration of KES 204 billion (€1.4
billion) and 5% from Vodafone for a cash consideration of KES 68
billion (€0.5 billion). Following completion of the
acquisition, Safaricom is owned by Vodacom (55%), the Government of
Kenya (20%) and public investors (25%). A legal challenge over the
validity of the acquisition remains ongoing in Kenya, see note 11
‘Contingent liabilities and legal proceedings’ in the
unaudited condensed consolidated financial statements for further
information. As a result, Safaricom is no longer accounted for as
an associate and its contribution is included within consolidated
operating results. Vodafone’s share of results in H1 FY27
reflects earnings from Safaricom for the first three months of the
year. During H1 FY27, Safaricom distributed nil (H1 FY26: €69
million) in dividends to Vodafone.
Maziv Proprietary Limited (South Africa) – 19.5%
ownership
Maziv Propriety Limited (‘Maziv’) is South African
telecommunications and fibre infrastructure provider. In December
2025, Vodacom Group acquired a 30% stake in Maziv. The open access
joint venture now provides fibre connectivity to 3.2 million
households in South Africa.
TPG Telecom Limited
Joint Venture (Australia) – 23.7% ownership
TPG Telecom Limited is a full-service telecommunications provider
in Australia and is listed on the Australian stock exchange. The
Group owns an equivalent economic interest of 23.7%, via an 11%
direct stake in TPG and a 13% indirect stake, held through a 50:50
joint venture with CK Hutchison. The Group provides guarantees
amounting to US$0.5 billion and €0.6 billion in relation to
its 50% share in the loan facility. During H1 FY27, Vodafone
received €25 million (H1 FY26: €10 million) in
dividends from its direct stake in TPG.
Vodafone Idea Limited Joint Venture (India) – 16.1%
ownership
As part of an agreement to merge Vodafone India and Idea Cellular
in 2017, the parties agreed a mechanism for payments (the
‘CLAM’) between the Group and Vodafone Idea Limited
(‘VIL’) in the event of the crystallisation and payment
of certain identified contingent liabilities of the two merging
parties. In December 2025 the Group reached an agreement with VIL
in relation to a final settlement of the CLAM under which the
Group’s interest in VIL’s equity reduced to 13.0% for
accounting purposes in September 2026. See note 7
‘Joint ventures and associates’ for more
information.
|
Net financing costs
|
|
|
|
|
|
|
|
H1 FY27
|
H1 FY26
|
Reported
|
|
|
|
€m
|
€m
|
change %
|
|
Investment
and other income
|
288
|
1,085
|
|
|
|
Financing
costs
|
(1,178)
|
(1,134)
|
|
|
|
Net financing costs
|
(890)
|
(49)
|
>-100%
|
|
|
Adjustments
for:
|
|
|
|
|
|
|
Mark-to-market
losses
|
11
|
177
|
|
|
|
Foreign
exchange losses/(gains)
|
10
|
(101)
|
|
|
Adjusted net financing (costs)/income1
|
(869)
|
27
|
>-100%
|
|
Note:
1.
Adjusted
net financing costs is a non-GAAP measure. See page 49 for more
information.
Adjusted net financing costs of €869 million (H1 FY26: net
financing income of €27 million), include nil (H1 FY26:
€782 million) gain on certain bonds bought back prior to
their maturity dates and interest on leases in the amount of
€340 million (H1 FY26: €292 million).
|
|
|
|
|
|
|
Taxation
|
|
|
|
|
|
|
|
H1 FY27
|
H1 FY26
|
Reported
|
|
|
%
|
%
|
change pps
|
|
|
Effective tax rate
|
(864.3%)
|
50.2%
|
(914.5)
|
|
|
Adjusted effective tax rate1
|
23.3%
|
27.4%
|
(4.1)
|
|
Note:
1.
Adjusted
effective tax rate is a non-GAAP measure. See page 49 for more
information.
The Group’s Effective tax rate (‘ETR’) for H1
FY27 was (864.3)%, reflecting a tax charge on a loss before
tax.
The ETR includes write-downs and remeasurements of deferred tax
assets ('DTAs') of €2,247 million in the UK (H1 FY26:
€nil) and €235 million in Germany (H1 FY26: €269
million). These are accounting adjustments with no current cash tax
impact where the underlying attributes, principally tax losses and
capital allowances, continue to be carried forward for future
utilisation. See note 4 'Taxation' for further information. The ETR
also reflects the non-deductible impairment loss in respect of
Germany of €4,850 million, partly offset by the non-taxable
gain of €3,022 million on the consolidation of
Safaricom.
The Group's Adjusted ETR ('AETR') for H1 FY27 was 23.3% (H1 FY26:
27.4%). The AETR excludes certain items, including the UK and
German DTA write-downs, remeasurements and non-recognition, the
€165 million (H1 FY26: €172 million) utilisation of the
Luxembourg loss DTA, the German impairment loss and the Safaricom
consolidation gain. The 4.1 percentage point reduction was mainly
driven by prior year deferred tax adjustments.
The ETR for H1 FY26 reflected a €269 million write-down of
German deferred tax balances and a €172 million deferred tax
charge relating to the utilisation of losses in Luxembourg.
Excluding these and other items, the AETR for H1 FY26 was
27.4%.
|
Earnings per share
|
|
|
|
|
|
|
|
|
|
Reported
|
|
|
|
H1 FY27
|
H1 FY26
|
change
|
|
|
|
eurocents
|
eurocents
|
eurocents
|
|
Basic (loss)/earnings per share
|
(20.75)c
|
3.38c
|
(24.13)c
|
|
|
Adjusted basic earnings per share1
|
1.48c
|
6.92c
|
(5.44)c
|
|
Note:
1. Adjusted basic
earnings per share is a non-GAAP measure. See page 49 for more
information.
Basic loss per share from operations was 20.75 eurocents, compared
to basic earnings per share of 3.38 eurocents for H1 FY26. The
decrease was primarily due to a lower operating profit, as the
impairment of Germany outweighed a gain on the remeasurement of our
previously held interest in Safaricom to fair value, and higher
taxation following the deferred tax asset charges in Germany and
the UK, offset by lower investment income compared to the
comparative period.
Adjusted
basic earnings per share was 1.48 eurocents, compared to 6.92
eurocents for H1 FY26. The decrease was primarily due to a lower
adjusted profit before tax due to a decrease in investment income
compared to the comparative period.
|
Cash flow & funding
|
|
|
|
|
|
|
|
|
|
|
Analysis of cash flow
|
|
|
|
|
|
H1 FY27
|
H1 FY26
|
Reported
|
|
|
€m
|
€m
|
change %
|
|
Inflow
from operating activities
|
6,354
|
5,092
|
24.8
|
|
Outflow
from investing activities
|
(3,349)
|
(1,874)
|
(78.7)
|
|
Outflow
from financing activities
|
(6,937)
|
(6,918)
|
(0.3)
|
|
Net cash outflow
|
(3,932)
|
(3,700)
|
(6.3)
|
|
Cash
and cash equivalents at the beginning of the financial
period
|
8,913
|
10,893
|
|
|
Exchange
gain/(loss) on cash and cash equivalents
|
65
|
(192)
|
|
|
Cash and cash equivalents at the end of the financial
period
|
5,046
|
7,001
|
|
Cash inflow from operating activities increased to €6,354
million, reflecting higher cash generated by
operations.
Outflow from investing activities increased by €1,475 million
to €3,349 million, primarily due to the purchase of an
additional 15% stake in Safaricom (€1,125 million, net of
cash acquired of €254 million), lower net inflow in respect
of short-term investments and higher outflows in respect of the
purchase of property, plant and equipment, offset by an inflow of
€973 million from the disposal of VodafoneZiggo. Short-term
investments include highly liquid government and government-backed
securities, managed investment funds that are in highly rated and
liquid money market investments with liquidity of up to 90
days.
Outflows from financing activities increased to €6,937
million resulting from transactions with NCI, including the buyout
of the remaining 49% of VodafoneThree (€5,019 million),
offset by lower net cash outflows in respect of repayment of
borrowings, lower net movement in short term borrowings, and lower
cash outflows in respect of the purchase of treasury shares
following the completion of the share buyback
programme.
|
Analysis of cash flow (continued)
|
|
|
|
|
|
H1 FY27
|
H1 FY26
|
Reported
|
|
|
€m
|
€m
|
change %
|
|
Adjusted EBITDAaL1
|
6,451
|
5,728
|
12.6
|
|
Capital
additions2
|
(3,320)
|
(2,800)
|
|
|
Working
capital3
|
(2,276)
|
(2,717)
|
|
|
Disposal
of property, plant and equipment and intangible assets
|
17
|
14
|
|
|
Integration
capital additions
|
(64)
|
(21)
|
|
|
Restructuring
costs including working capital movements4
|
(320)
|
(122)
|
|
|
Licences
and spectrum
|
(21)
|
(45)
|
|
|
Interest
received and paid5,6
|
(393)
|
(455)
|
|
|
Taxation
|
(706)
|
(522)
|
|
|
Dividends
received from associates and joint ventures
|
125
|
235
|
|
|
Dividends
paid to non-controlling shareholders in subsidiaries
|
(398)
|
(141)
|
|
|
Other
|
60
|
75
|
|
|
Free cash flow1
|
(845)
|
(771)
|
(9.6)
|
|
Acquisitions
and disposals
|
(6,957)
|
(1,722)
|
|
|
Equity
dividends paid
|
(544)
|
(558)
|
|
|
Share
buybacks
|
(92)
|
(973)
|
|
|
Foreign
exchange loss
|
(98)
|
(14)
|
|
|
Other
movements in net debt6
|
474
|
496
|
|
|
Net debt increase1
|
(8,062)
|
(3,542)
|
|
|
Opening
net debt1
|
(25,411)
|
(22,397)
|
|
|
Closing net debt1
|
(33,473)
|
(25,939)
|
(29.0)
|
|
|
|
|
|
|
Free cash flow1
|
(845)
|
(771)
|
|
|
Adjustments:
|
|
|
|
|
-
Licences and spectrum
|
21
|
45
|
|
|
-
Restructuring costs including working capital movements4
|
320
|
122
|
|
|
-
Integration capital additions
|
64
|
21
|
|
|
Adjusted free cash flow1
|
(440)
|
(583)
|
|
Notes:
1.
Adjusted
EBITDAaL, Free cash flow, Adjusted free cash flow and Net debt are
non-GAAP measures. See page 49 for more
information.
2.
See page 62
for an analysis of tangible and intangible additions in the
year.
3.
Includes the
impact of €184 million of Trade payables for which the Group
has extended payment terms from 30 to 90 days through the use of
reverse factoring at 30 September 2026 (31 March 2026: €128
million).
4.
Includes
working capital in respect of integration capital
additions.
5.
Interest
received and paid excludes €341 million outflow (H1 FY26:
€291 million outflow) in relation to the cash portion of
interest on lease liabilities included within Adjusted
EBITDAaL.
6.
Other
movements in net debt includes €908 million in settlement of
a loan receivable from VodafoneZiggo, offset by €213m
advanced to the Government of Kenya under a dividend purchase
agreement (see Note 9). Other movements in net debt for H1 FY26
includes €782 million in relation to gains on certain bonds
bought back prior to their maturity date.
Acquisitions and disposals include the buyout of the remaining 49%
of VodafoneThree (€5,019 million), the purchase of an
additional 15% stake in Safaricom (€1,379 million) and net
debt acquired in the Safaricom transaction of €537
million.
Adjusted free cash flow was an outflow of €440 million in the
period, representing an improvement of €143 million compared
to the comparative period. This primarily reflects higher adjusted
EBITDAaL and lower working capital which outweighed higher capital
additions, dividends paid and taxation outflows.
|
Borrowings and cash position
|
|
|
|
|
|
|
|
H1 FY27
|
Year-end FY26
|
Reported
|
|
|
|
€m
|
€m
|
change %
|
|
Non-current
borrowings
|
(49,991)
|
(45,506)
|
|
|
|
Current
borrowings
|
(6,824)
|
(7,130)
|
|
|
|
Borrowings
|
(56,815)
|
(52,636)
|
|
|
|
Cash
and cash equivalents
|
5,133
|
8,982
|
|
|
|
Borrowings less cash and cash equivalents
|
(51,682)
|
(43,654)
|
(18.4)
|
|
Borrowings include bonds of €36,092 million (31 March 2026:
€33,828 million), lease liabilities of €12,777 million
(31 March 2026: €12,388 million), cash collateral liabilities
of €1,341 million (31 March 2026: €1,644 million) and
loans and other borrowings of €6,605 million (31 March 2026:
€4,776 million).
The increase in borrowings of €4,179 million was driven by an
increase in bonds (€2,264 million), primarily due to the
issue of new bonds, together with an increase in bank loans
(€1,195 million), which outweighed a decrease in cash
collateral liabilities (€303 million).
|
|
|
|
|
|
|
Funding position
|
|
|
|
|
|
|
H1 FY27
|
Year-end FY26
|
Reported
|
|
|
|
|
€m
|
€m
|
change %
|
|
Bonds
|
(36,092)
|
(33,828)
|
|
|
|
Bank
loans
|
(2,578)
|
(1,383)
|
|
|
|
Other
borrowings including spectrum
|
(4,027)
|
(3,393)
|
|
|
|
Gross debt1
|
(42,697)
|
(38,604)
|
(10.6)
|
|
|
Cash
and cash equivalents
|
5,133
|
8,982
|
|
|
|
Non-current
investments in sovereign securities
|
407
|
915
|
|
|
|
Short-term
investments2
|
3,257
|
3,431
|
|
|
|
Derivative
and other financial instruments3
|
489
|
340
|
|
|
|
Net
collateral liabilities4
|
(62)
|
(475)
|
|
|
|
Net debt1
|
(33,473)
|
(25,411)
|
(31.7)
|
|
Notes:
1.
Gross debt and
Net debt are non-GAAP measures. See page 49 for more
information.
2.
Short-term
investments include €nil (31 March 2026: €217 million)
of highly liquid government and government-backed securities and
managed investment funds of €3,257 million (31 March 2026:
€3,214 million) that are in highly rated and liquid money
market investments with liquidity of up to 90
days.
3.
Derivative and
other financial instruments exclude derivative movements in cash
flow hedging reserves of €153 million gain (31 March 2026:
€823 million gain).
4.
Collateral
arrangements on derivative financial instruments result in cash
being held as security. This is repayable when derivatives are
settled and is therefore deducted from
liquidity.
Net debt increased by €8,062 million to €33,473
million. This was driven by a free cash outflow of €845
million, together with outflows in relation to acquisitions and
disposals including the VodafoneThree and Safaricom transactions
(€6,957 million), equity dividends (€544 million) and
share buybacks (€92 million), offset by other movements
(€474 million).
Other funding considerations include:
|
|
H1 FY27
|
Year-end FY26
|
|
|
|
|
|
€m
|
€m
|
|
|
Lease
liabilities
|
(12,777)
|
(12,388)
|
|
|
|
Pension
fund liabilities
|
(178)
|
(206)
|
|
|
|
Guarantees
over loan issued by Australia joint venture
|
(1,038)
|
(1,031)
|
|
|
|
Equity
characteristic of 50% attributed by credit rating agencies to
‘Hybrid bonds’ included in net debt, EUR swapped value
of €7,594 million (€7,594 million as at 31 March
2026)
|
3,797
|
3,797
|
|
|
The Group’s gross and net debt includes certain bonds which
have been designated in hedge relationships, which are carried at
€755 million higher value (€839 million higher as at 31
March 2026) than their euro equivalent redemption value. In
addition, where bonds are issued in currencies other than the euro,
the Group has entered into foreign currency swaps to fix the euro
cash outflows on redemption. The impact of these swaps is not
reflected in gross debt and if it were included, the euro
equivalent value of the bonds would increase by €1 million
(€173 million increase as at 31 March 2026).
Return on capital employed
Return on capital employed (‘ROCE’) reflects how
efficiently we are generating profit with the capital we
deploy. We calculate two ROCE measures: i) Pre-tax ROCE for
controlled operations only and ii) Post-tax ROCE including
associates and joint ventures.
The table below presents adjusted ROCE metrics.
|
|
H1 FY27
|
H1 FY26
|
Reported
|
|
|
%
|
%
|
Change pps
|
|
Pre-tax ROCE (controlled)1
|
6.7%
|
7.2%
|
(0.5)
|
|
Post-tax ROCE (controlled and associates/joint
ventures)1
|
4.5%
|
4.8%
|
(0.3)
|
Note:
1.
The
half-year ROCE calculation is based on returns for the 12 months
ended 30 September. ROCE is calculated by dividing Operating profit
by the average of capital employed as reported in the consolidated
statement of financial position. Pre-tax ROCE (controlled) and
Post-tax ROCE (controlled and associates/joint ventures) are
non-GAAP measures. See page 49 for more
information.
ROCE calculated using GAAP measures for the 12 months ended 30
September 2026 was 1.3% (H1 FY26: -0.6%), impacted by higher
operating profit.
Funding facilities
As at 30 September 2026, the Group had undrawn revolving credit
facilities of €7.6 billion comprising euro and US dollar
revolving credit facilities of €4.1 billion and US$4.0
billion (€3.5 billion) which mature in 2031 and 2028
respectively. Both committed revolving credit facilities support US
and euro commercial paper programmes of up to US$15 billion
(€13 billion) and €10 billion
respectively.
Post employment benefits
As at 30 September 2026, the Group’s net surplus of scheme
assets over scheme liabilities was €184 million (€82
million net surplus as at 31 March 2026).
|
Dividends
|
|
|
|
|
Dividends will continue to be declared in euros, aligning the
Group’s shareholder returns with the primary currency in
which we generate free cash flow, and paid in euros, pounds
sterling and US dollars. The foreign exchange rate at which future
dividends declared in euros will be converted into pounds sterling
and US dollars will be calculated based on the average World
Markets Company benchmark rates over the five business days
concluding one week prior to the payment of the
dividend.
The Board has announced an interim dividend per share of 2.306
eurocents (H1 FY26: 2.25 eurocents).
The ex-dividend date for the interim dividend is 19 November 2026
for ordinary shareholders and 20 November 2026 for ADR holders, the
record date is 20 November 2026 and the dividend is payable on 3
February 2027.
Shareholders may elect to receive their dividend in either
eurocents or GBP and the last day for election will be 13 January
2027. Alternatively, shareholders may participate in the dividend
reinvestment plan and elections must be made by 13 January 2027.
More information can be found at vodafone.com/dividends
|
Other significant developments
|
|
|
|
|
Board changes
Hatem Dowidar resigned from the Board on 10 July 2026.
The following Board changes took effect after the conclusion of the
2026 Annual General Meeting in July:
− Olaf
Koch was appointed as a Non-Executive Director.
− Amparo
Moraleda retired from the Board and as Chair of the ESG Committee
and Remuneration Committee.
− Anne-Françoise
Nesmes was appointed Chair of the ESG Committee.
− Christine
Ramon was appointed Chair of the Remuneration Committee.
|
Risk factors
|
|
|
|
|
Principal risks
The Group operates in a rapidly changing external environment and
continues to manage a broad range of risks that could impact on the
achievement of its strategic objectives, operational performance,
financial results, and long-term value creation. The principal
risks that could have a significant effect on the Group's
performance are set out below.
Adverse external changes in the regulatory and policy
environment
Significant adverse changes to the external environment that could
impact our strategy, resulting in increased costs, creating a
competitive disadvantage, or having a negative impact on our return
on capital employed.
Adverse macroeconomic, liquidity, funding, and market
risk
The risk of financial loss or operational disruptions due to the
inefficient use of funds, inability to access capital markets on
reasonable terms, or manage deteriorating market
conditions.
Adverse market competition
Accelerated traditional competition, unmet customer expectations
for leading-edge technology in networks, and the risk of
disintermediation from disruptive technologies or market
consolidation could weaken our competitive position, resulting in
market share losses, reduced pricing power, and lower
profitability.
Cyber threat
An external attack, insider threat, or supplier breach causes
service disruption or data breach.
Data management and privacy
Data privacy breaches, misuse of data, data manipulation,
inappropriate data sharing, poor data quality, data unavailability,
or failure to retain or dispose of data appropriately could lead to
fines, reputational damage, loss of value, loss of business
opportunity, and failure to meet our customer
expectations.
IT availability and transformation
Failures or disruptions of IT systems and infrastructure or the
inability to modernise and manage the IT environment could
negatively impact operations, services, customer experience, or
financial performance.
Legal and regulatory risk
The risk of not complying with applicable regulation may lead to
penalties, financial loss, criminal, and/or civil action, and
reputational damage.
Network failure
Major network outages could lead to dissatisfied customers and/or
impact revenue.
Strategic transformation execution
Failure to effectively transform Vodafone to adapt to future
challenges and demands that could increase operational complexity,
as well as impact growth and competitiveness.
Supply chain disruption
The risk of disruption in the supply chain and over-reliance on key
suppliers may result in the inability to execute strategic plans,
increase costs, limit supplier options, and adversely impact
network quality.
Vodafone continues to actively monitor and manage its principal
risks through its established Risk Management Framework. Principal
risks are regularly reviewed by management and periodically
reported to the Group Risk and Compliance Committee and to the
Group Audit and Risk Committee for oversight and
challenge.
Emerging risks
Emerging risks are inherently uncertain and evolving risks that
could materially impact our strategic objectives, business model,
operations, and long-term value creation. The Group identifies and
assesses these risks through ongoing analysis of internal
developments and external legal, regulatory, political, economic,
societal, technological, and environmental trends. Where
appropriate, emerging risks are subject to enhanced management
attention, additional governance oversight or elevation to
principal risk status.
|
Responsibility statement
|
|
|
|
|
We confirm that to the best of our knowledge:
- The
unaudited condensed consolidated financial statements have been
prepared in accordance with IAS 34, ‘Interim Financial
Reporting’, as issued by the International Accounting
Standards Board and as contained in UK-adopted international
accounting standards; and
- The
interim management report includes a fair review of the information
required by Disclosure Guidance and Transparency Rules sourcebook
4.2.7 and Disclosure Guidance and Transparency Rules sourcebook
4.2.8.
Neither the Company nor the directors accept any liability to any
person in relation to the half-year financial report except to the
extent that such liability could arise under English law.
Accordingly, any liability to a person who has demonstrated
reliance on any untrue or misleading statement or omission shall be
determined in accordance with section 90A and schedule 10A of the
Financial Services and Markets Act
2000.
The names and functions of the Vodafone Group Plc Board of
Directors can be found at:
www.vodafone.com/board
By Order of the Board
Maaike de Bie
Group General Counsel and Company Secretary
10 November 2026
|
Unaudited condensed consolidated financial statements
|
|
|
|
|
|
|
|
Consolidated income statement
|
|
|
|
|
|
|
|
|
Six
months ended 30 September
|
|
|
|
|
|
2026
|
2025
|
|
|
Note
|
|
€m
|
€m
|
|
Revenue
|
2
|
|
21,853
|
19,609
|
|
Cost of
sales
|
|
|
(14,651)
|
(13,229)
|
|
Gross profit
|
|
|
7,202
|
6,380
|
|
Selling
and distribution expenses
|
|
|
(1,692)
|
(1,529)
|
|
Administrative
expenses
|
|
|
(3,280)
|
(2,750)
|
|
Net
credit losses on financial assets
|
|
|
(257)
|
(207)
|
|
Share
of results of equity accounted associates and joint
ventures
|
|
|
25
|
182
|
|
Impairment
charge
|
3
|
|
(4,850)
|
–
|
|
Other
income
|
9
|
|
3,369
|
86
|
|
Operating profit
|
2
|
|
517
|
2,162
|
|
Investment
and other income
|
|
|
288
|
1,085
|
|
Financing
costs
|
|
|
(1,178)
|
(1,134)
|
|
(Loss)/profit before taxation
|
|
|
(373)
|
2,113
|
|
Income
tax expense
|
4
|
|
(3,224)
|
(1,061)
|
|
(Loss)/profit for the financial period
|
|
|
(3,597)
|
1,052
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
–
Owners of the parent
|
|
|
(4,789)
|
829
|
|
–
Non-controlling interests
|
|
|
1,192
|
223
|
|
(Loss)/profit for the financial period
|
|
|
(3,597)
|
1,052
|
|
|
|
|
|
|
|
(Loss)/earnings per share
|
|
|
|
|
|
–
Basic
|
5
|
|
(20.75)c
|
3.38c
|
|
–
Diluted
|
5
|
|
(20.75)c
|
3.36c
|
The accompanying notes are an integral part of the unaudited
condensed consolidated financial statements.
|
Consolidated statement of comprehensive income
|
|
||||
|
|
|
|
|
Six
months ended 30 September
|
|
|
|
|
|
|
2026
|
2025
|
|
|
|
|
|
€m
|
€m
|
|
(Loss)/profit for the financial period
|
|
|
|
(3,597)
|
1,052
|
|
Other comprehensive income:
|
|
|
|
|
|
|
Items that may be reclassified to the income statement in
subsequent years:
|
|
|
|
|
|
|
Foreign
exchange translation differences, net of tax
|
|
|
|
678
|
(812)
|
|
Foreign
exchange translation differences recycled on disposal
|
|
|
|
187
|
–
|
|
Other,
net of tax1
|
|
|
|
(536)
|
18
|
|
Total items that may be reclassified to the income statement in
subsequent periods
|
|
|
|
329
|
(794)
|
|
Items that will not be reclassified to the income statement in
subsequent years:
|
|
|
|
|
|
|
Fair
value (losses)/gains on equity instruments classified as Other
investments, net of tax
|
|
|
|
(192)
|
242
|
|
Net
actuarial gains/(losses) on defined benefit pension schemes, net of
tax
|
|
|
|
19
|
(1)
|
|
Total items that will not be reclassified to the income statement
in subsequent periods
|
|
|
|
(173)
|
241
|
|
Other comprehensive income/(expense)
|
|
|
|
156
|
(553)
|
|
Total comprehensive (expense)/income for the financial
period
|
|
|
|
(3,441)
|
499
|
|
|
|
|
|
|
|
|
Attributable
to:
|
|
|
|
|
|
|
–
Owners of the parent
|
|
|
|
(4,753)
|
393
|
|
–
Non-controlling interests
|
|
|
|
1,312
|
106
|
|
|
|
|
|
(3,441)
|
499
|
Note:
1.
Principally
includes the impact of the Group’s cash flow hedges
recognised in other comprehensive income during the
period.
The accompanying notes are an integral part of the unaudited
condensed consolidated financial statements.
|
Consolidated statement of financial position
|
|
|
|
|
|
|
|
|
|
|
30
September
|
31
March
|
|
|
|
|
|
2026
|
2026
|
|
|
|
Note
|
|
€m
|
€m
|
|
Non-current assets
|
|
|
|
|
|
|
Goodwill
|
|
|
|
20,324
|
21,918
|
|
Other
intangible assets
|
|
|
|
17,790
|
14,359
|
|
Property,
plant and equipment
|
|
|
|
36,713
|
34,193
|
|
Investments
in associates and joint ventures
|
|
7
|
|
6,033
|
6,492
|
|
Other
investments
|
|
|
|
1,458
|
2,087
|
|
Deferred
tax assets
|
|
|
|
15,431
|
18,068
|
|
Post
employment benefits
|
|
|
|
362
|
288
|
|
Trade
and other receivables
|
|
|
|
5,224
|
5,221
|
|
|
|
|
|
103,335
|
102,626
|
|
Current assets
|
|
|
|
|
|
|
Inventory
|
|
|
|
779
|
596
|
|
Taxation
recoverable
|
|
|
|
137
|
186
|
|
Trade
and other receivables
|
|
|
|
11,499
|
10,584
|
|
Other
investments
|
|
|
|
6,107
|
6,770
|
|
Cash
and cash equivalents
|
|
|
|
5,133
|
8,982
|
|
|
|
|
|
23,655
|
27,118
|
|
Assets
held for sale
|
|
7
|
|
–
|
174
|
|
Total assets
|
|
|
|
126,990
|
129,918
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
Called
up share capital
|
|
|
|
3,950
|
3,950
|
|
Additional
paid-in capital
|
|
|
|
150,423
|
150,312
|
|
Treasury
shares
|
|
|
|
(6,550)
|
(6,704)
|
|
Accumulated
losses
|
|
|
|
(134,733)
|
(126,532)
|
|
Accumulated
other comprehensive income
|
|
|
|
29,643
|
29,607
|
|
Total attributable to owners of the parent
|
|
|
|
42,733
|
50,633
|
|
Non-controlling
interests
|
|
|
|
4,050
|
3,732
|
|
Total equity
|
|
|
|
46,783
|
54,365
|
|
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
|
Borrowings
|
|
|
|
49,991
|
45,506
|
|
Share
of net liabilities in joint ventures and associates
|
|
7
|
|
143
|
102
|
|
Deferred
tax liabilities
|
|
|
|
1,620
|
1,043
|
|
Post
employment benefits
|
|
|
|
178
|
206
|
|
Provisions
|
|
|
|
1,316
|
1,261
|
|
Non-debt
liabilities in respect of written put options
|
|
|
|
299
|
107
|
|
Trade
and other payables
|
|
|
|
3,925
|
3,333
|
|
|
|
|
|
57,472
|
51,558
|
|
Current liabilities
|
|
|
|
|
|
|
Borrowings
|
|
|
|
6,824
|
7,130
|
|
Taxation
liabilities
|
|
|
|
525
|
555
|
|
Provisions
|
|
|
|
750
|
731
|
|
Trade
and other payables
|
|
|
|
14,636
|
15,579
|
|
|
|
|
|
22,735
|
23,995
|
|
Total equity and liabilities
|
|
|
|
126,990
|
129,918
|
The accompanying notes are an integral part of the unaudited
condensed consolidated financial statements.
|
Consolidated statement of changes in equity
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
Share
capital
|
Additional
paid-in
capital1
|
Treasury
shares
|
Accumulated
comprehensive
losses2
|
Equity
attributable to the owners
|
Non-
controlling
interests
|
Total
equity
|
|
|
€m
|
€m
|
€m
|
€m
|
€m
|
€m
|
€m
|
|
1 April 2025
|
4,319
|
149,834
|
(6,791)
|
(94,617)
|
52,745
|
1,171
|
53,916
|
|
Issue
or reissue of shares
|
–
|
1
|
76
|
(77)
|
–
|
–
|
–
|
|
Share-based
payments
|
–
|
31
|
–
|
–
|
31
|
3
|
34
|
|
Acquisition
of subsidiaries
|
–
|
–
|
–
|
–
|
–
|
1,120
|
1,120
|
|
Transactions
with non-controlling interests in subsidiaries
|
–
|
–
|
–
|
1,206
|
1,206
|
1,536
|
2,742
|
|
Comprehensive
income
|
–
|
–
|
–
|
393
|
393
|
106
|
499
|
|
Dividends
|
–
|
–
|
–
|
(558)
|
(558)
|
(144)
|
(702)
|
|
Purchase
of treasury shares
|
–
|
–
|
(1,000)
|
–
|
(1,000)
|
–
|
(1,000)
|
|
Cancellation
of shares
|
(130)
|
130
|
680
|
(680)
|
–
|
–
|
–
|
|
30 September 2025
|
4,189
|
149,996
|
(7,035)
|
(94,333)
|
52,817
|
3,792
|
56,609
|
|
|
|
|
|
|
|
|
|
|
1 April 2026
|
3,950
|
150,312
|
(6,704)
|
(96,925)
|
50,633
|
3,732
|
54,365
|
|
Issue
or reissue of shares
|
–
|
48
|
154
|
(191)
|
11
|
113
|
124
|
|
Share-based
payments
|
–
|
63
|
–
|
–
|
63
|
5
|
68
|
|
Acquisition
of subsidiaries3
|
–
|
–
|
–
|
–
|
–
|
1,959
|
1,959
|
|
Transactions
with non-controlling interests in subsidiaries3
|
–
|
–
|
–
|
(2,677)
|
(2,677)
|
(2,670)
|
(5,347)
|
|
Comprehensive
(expense)/income
|
–
|
–
|
–
|
(4,753)
|
(4,753)
|
1,312
|
(3,441)
|
|
Dividends
|
–
|
–
|
–
|
(544)
|
(544)
|
(401)
|
(945)
|
|
30 September 2026
|
3,950
|
150,423
|
(6,550)
|
(105,090)
|
42,733
|
4,050
|
46,783
|
Notes:
1.
Includes share
premium, capital reserve, capital redemption reserve, merger
reserve and share-based payment reserve. The merger reserve was
derived from acquisitions made prior to 31 March 2004 and
subsequently allocated to additional paid-in capital on adoption of
IFRS.
2.
Includes
accumulated losses and accumulated other comprehensive
income.
3.
See
Note 9 ‘Acquisitions and disposals’ for further
information.
The accompanying notes are an integral part of the unaudited
condensed consolidated financial statements.
|
Consolidated statement of cash flows
|
|
|
|
|
|
|
|
|
|
|
Six
months ended 30 September
|
|
|
|
|
|
|
2026
|
2025
|
|
|
|
Note
|
|
€m
|
€m
|
|
Inflow from operating activities
|
|
8
|
|
6,354
|
5,092
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
Purchase
of interests in subsidiaries, net of cash acquired
|
|
9
|
|
(1,125)
|
27
|
|
Purchase
of interests in associates and joint ventures
|
|
|
|
(145)
|
(68)
|
|
Purchase
of intangible assets
|
|
|
|
(924)
|
(968)
|
|
Purchase
of property, plant and equipment
|
|
|
|
(3,162)
|
(2,453)
|
|
Purchase
of investments
|
|
|
|
(191)
|
(530)
|
|
Disposal
of interests in associates and joint ventures
|
|
|
|
65
|
20
|
|
Disposal
of property, plant and equipment and intangible assets
|
|
|
|
103
|
15
|
|
Disposal
of investments
|
|
|
|
1,637
|
1,566
|
|
Dividends
received from associates and joint ventures
|
|
|
|
125
|
235
|
|
Interest
received
|
|
|
|
268
|
282
|
|
Outflow from investing activities
|
|
|
|
(3,349)
|
(1,874)
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
Proceeds
from issue of long-term borrowings
|
|
|
|
3,969
|
4,092
|
|
Repayment
of borrowings
|
|
|
|
(3,638)
|
(7,494)
|
|
Net
movement in short-term borrowings
|
|
|
|
(86)
|
(975)
|
|
Net
movement in derivatives
|
|
|
|
(32)
|
56
|
|
Interest
paid
|
|
|
|
(1,004)
|
(1,028)
|
|
Purchase
of treasury shares
|
|
|
|
(92)
|
(973)
|
|
Issue
of ordinary share capital and reissue of treasury
shares
|
|
|
|
11
|
–
|
|
Equity
dividends paid
|
|
|
|
(544)
|
(558)
|
|
Dividends
paid to non-controlling shareholders in subsidiaries
|
|
|
|
(398)
|
(141)
|
|
Payments
to non-controlling shareholders in subsidiaries
|
|
9
|
|
(5,320)
|
(22)
|
|
Receipts
from non-controlling shareholders in subsidiaries
|
|
9
|
|
197
|
125
|
|
Outflow from financing activities
|
|
|
|
(6,937)
|
(6,918)
|
|
|
|
|
|
|
|
|
Net cash outflow
|
|
|
|
(3,932)
|
(3,700)
|
|
Cash
and cash equivalents at the beginning of the financial
period1
|
|
|
|
8,913
|
10,893
|
|
Exchange
gain/(loss) on cash and cash equivalents
|
|
|
|
65
|
(192)
|
|
Cash and cash equivalents at the end of the financial
period1,2
|
|
|
|
5,046
|
7,001
|
Notes:
1.
Comprises cash
and cash equivalents as presented in the consolidated statement of
financial position of €5,133 million (€7,087 million as
at 30 September 2025), together with overdrafts of €87
million (€86 million as at 30 September
2025).
2.
Includes
€63 million of restricted cash (€nil as at 30 September
2025).
The accompanying notes are an integral part of the unaudited
condensed consolidated financial statements.
Notes to the unaudited condensed consolidated financial
statements
1 Basis of preparation
The unaudited condensed consolidated financial statements for the
six months ended 30 September 2026:
●
are
prepared in accordance with International Accounting Standard 34
‘Interim Financial Reporting’ (‘IAS 34’) as
issued by the International Accounting Standards Board
(‘IASB’) and as adopted by the United Kingdom, and the
Disclosure Guidance and Transparency Rules of the United
Kingdom’s Financial Conduct Authority;
●
are
presented on a condensed basis as permitted by IAS 34 and therefore
do not include all disclosures that would otherwise be required in
a full set of financial statements and should be read in
conjunction with the Group’s Annual Report for the year ended
31 March 2026;
●
apply
the same accounting policies, presentation and methods of
calculation as those followed in the preparation of the
Group’s consolidated financial statements for the year ended
31 March 2026, which were prepared in accordance with UK-adopted
International Accounting Standards (‘IAS’), with
International Financial Reporting Standards (‘IFRS’) as
issued by the IASB and with the requirements of the UK Companies
Act 2006. Income taxes are accrued using the tax rate that is
expected to be applicable for the full financial year, adjusted for
certain discrete items which occurred in the interim period in
accordance with IAS 34;
●
include
all adjustments, consisting of normal recurring adjustments,
necessary for a fair statement of the results for the periods
presented;
●
do
not constitute statutory accounts within the meaning of section
434(3) of the UK Companies Act 2006; and
●
were
approved by the Board of Directors on 10 November
2026.
The information relating to the year ended 31 March 2026 is
extracted from the Group’s published Annual Report for that
year, which has been delivered to the Registrar of Companies, and
on which the auditor’s report was unqualified and did not
contain any emphasis of matter of statements under section 498(2)
or 498(3) of the UK Companies Act 2006.
The preparation of the unaudited condensed consolidated financial
statements requires management to make certain estimates and
assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at
the end of the reporting period, and the reported amounts of
revenue and expenses during the period. Actual results could vary
from these estimates. These estimates and underlying assumptions
are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised if
the revisions affect only that period or in the period of the
revision and future periods if the revision affects both current
and future periods.
Going concern
The Group has €5.0 billion of cash and cash equivalents as at
30 September 2026 which, together with undrawn revolving credit
facilities of €7.6 billion, cover all of the Group’s
reasonably expected cash requirements over the going concern
period. The Directors have reviewed trading and liquidity forecasts
for the Group, which were based on current trading conditions, and
considered a variety of scenarios. As a result of the assessment
performed, the Directors have concluded that the Group is able to
continue in operation for the period up to and including December
2027 and that it is appropriate to continue to adopt the going
concern basis in preparing the unaudited condensed consolidated
financial statements.
Notes to the unaudited condensed consolidated financial
statements
1 Basis of preparation (continued)
Critical accounting judgements and estimates
The Group’s critical accounting judgements and estimates are
disclosed in the Group’s Annual Report for the year ended 31
March 2026.
Potential indicators of impairment
The Group performs its annual impairment test for goodwill and
indefinite-lived intangible assets at 31 March. At interim
reporting periods, the Group performs a review to identify any
indicator of impairment that may indicate that the carrying amount
of any of the Group’s cash generating units may not be
recoverable. As part of this assessment as at 30 September 2026,
the Group reviewed the key assumptions underlying the value in use
valuations used in the annual impairment test at 31 March
2026.
See note 3 ‘Impairment review’ for further
information.
New joint venture partner for OXG Glasfaser Beteiligungs
GmbH
In August 2026, agreement was reached for the disposal by Geodesia
Holdings S.à r.l., the Group’s joint venture partner, of
its 50% interest in OXG Glasfaser Beteiligungs GmbH
(‘OXG’) to Itaparica Investments S.A.
(‘Itaparica’), a subsidiary of Société
Générale S.A. The transaction completed on 29 October
2026. As part of the agreement, Itaparica has agreed to
provide equity funding to OXG (see note 10 ‘Fair value of
financial instruments’). Itaparica is exposed to
variability in the returns from its investment, subject to a
guaranteed minimum return and a maximum return.
Key decisions relating to OXG will be made jointly by Itaparica and
the Group and, accordingly, OXG remains an equity-accounted joint
venture.
See note 7 ‘Joint ventures and associates’ and note 10
‘Fair value of financial instruments’ for further
information.
Consolidation of Safaricom PLC
The Group obtained a controlling shareholding in Safaricom PLC
(‘Safaricom’) on 30 June 2026 via the acquisition of
15% of Safaricom’s equity from the Government of Kenya
(‘the Government’). The acquisition of the 15%
Safaricom equity from the Government is subject to a judgement
issued by the Kenyan High Court on 15 September 2026 in which the
court nullified the transaction (‘the Judgement’); the
Judgement is subject to an appeal hearing (see note 11
‘Contingent liabilities and legal proceedings’). A
separate Court of Appeal order on 13 October 2026 requires the
prevailing status quo in respect of the shares and purchase
consideration to be maintained pending the hearing of the appeal.
The acquired shares therefore remain registered to Vodafone Kenya
Limited and the Group retains the related rights. As a result, the
Group continues to consolidate Safaricom. The ultimate outcome of
the appeal remains uncertain and, if the appeal is unsuccessful,
the implications on the Group’s accounting will be
reassessed.
Also see note 9 ‘Acquisitions and disposals’ for
further information.
Notes to the unaudited condensed consolidated financial
statements
1 Basis of preparation (continued)
Hyperinflationary economies
The Turkish economy was designated as hyperinflationary from 30
June 2022. The Group has applied IAS 29 ‘Financial Reporting
in Hyperinflationary Economies’ to its Turkish operations,
whose functional currency is Turkish lira, from 1 April
2022.
In applying IAS 29, the Turkish lira results and non-monetary asset
and liability balances for relevant financial periods have been
revalued to their present value equivalent local currency amounts
at the reporting date, based on the consumer price indexes issued
by the Turkish Statistical Institute. Comparative periods are not
restated per IAS 21 ‘The Effects of Changes in Foreign
Exchange rates’. The Turkish index has risen by 13.0% (2025:
14.0%) during the six months ended 30 September 2026. The revalued
balances are translated to euros at the reporting date exchange
rate of €1: 55.68 TRL (2025: €1: 48.86 TRL), applying
IAS 21.
For the Group’s operations in Türkiye:
●
The
gain or loss on the revaluation of net monetary assets resulting
from IAS 29 application is recognised in the Consolidated income
statement within Other income.
●
The
Group also presents the gain or loss on cash and cash equivalents
as monetary items together with the effect of inflation on
operating, investing and financing cash flows as one number in the
Consolidated statement of cash flows.
●
The
Group has presented the equity revaluation effects and the impact
of currency movements within Other comprehensive income as such
amounts are judged to meet the definition of ‘exchange
differences’.
The main impacts of the aforementioned adjustments for the
Group’s Turkish operations on the unaudited condensed
consolidated financial statements are shown below.
|
|
Increase/(decrease)
|
|
|
|
2026
|
2025
|
|
Impact on the consolidated income statement for the six months
ended 30 September
|
€m
|
€m
|
|
Revenue
|
20
|
(12)
|
|
Operating
profit1
|
(146)
|
(159)
|
|
(Loss)/profit
for the financial period1
|
(197)
|
(200)
|
|
|
|
|
|
|
Increase
|
|
|
|
30
September
|
31
March
|
|
|
2026
|
2026
|
|
Impact on the consolidated statement of financial
position
|
€m
|
€m
|
|
Net
assets
|
956
|
895
|
|
Equity
attributable to owners of the parent
|
956
|
895
|
|
Non-controlling
interests
|
–
|
–
|
Note:
1.
Includes
€118 million gain on the net monetary assets/liabilities (Six
months ended 30 September 2025: €58 million gain).
New accounting pronouncements adopted
On 1 April 2026, the Group adopted certain new accounting policies
where necessary to comply with amendments to IFRS, none of which
had a material impact on the consolidated results, financial
position or cash flows of the Group. Further details are provided
in the Group’s Annual Report for the year ended 31 March
2026.
Notes to the unaudited condensed consolidated financial
statements
2 Segmental analysis
Operating segments
The Group’s operating segments are established on the basis
of those components of the Group that are evaluated regularly by
the chief operating decision maker in deciding how to allocate
resources and in assessing performance. The Group has determined
the chief operating decision maker to be its Chief Executive. The
Group has a single group of similar services and products, being
the supply of communications services and related
products.
Revenue is attributed to a country based on the location of the
Group company reporting the revenue. Transactions between operating
segments are charged at arm’s-length prices.
The operating segments for Germany, UK, Türkiye and Africa are
individually material for the Group and are each reporting segments
for which certain financial information is provided.
The aggregation of smaller operating segments into the Other Europe
reporting segment reflects, in the opinion of management, the
similar local market economic characteristics and regulatory
environments for each of those operating segments as well as the
similar products and services sold and comparable classes of
customers. The Other Europe reporting segment (Portugal, Ireland,
Greece, Romania, Czech Republic and Albania), largely reflects
countries with membership of, or a close association with, the
European Union.
Africa predominantly comprises the Group’s operations in
Africa as part of the Vodacom group in South Africa, Egypt, Kenya
(as part of Safaricom PLC - see note 9 ‘Acquisitions and
disposals’), Tanzania, Mozambique, Democratic Republic of
Congo and Lesotho.
Common Functions is a separate reporting segment and comprises
activities which are undertaken primarily in central Group entities
that do not meet the criteria for aggregation with other reporting
segments.
Revenue disaggregation
Revenue reported for the period includes revenue from contracts
with customers, comprising service and equipment revenue, as well
as other revenue items including revenue from leases and interest
revenue arising from transactions with a significant financing
component. The tables below and overleaf disaggregate the
Group’s revenue by reporting segment.
The table below presents the results for the six months ended 30
September 2026.
|
|
Service
revenue
|
Equipment
revenue
|
Revenue
from contracts with customers
|
Other
revenue1
|
Interest
revenue
|
Total
segment revenue
|
Adjusted
EBITDAaL
|
|
|
€m
|
€m
|
€m
|
€m
|
€m
|
€m
|
€m
|
|
Six months ended 30 September 2026
|
|
|
|
|
|
|
|
|
Germany
|
5,483
|
435
|
5,918
|
126
|
9
|
6,053
|
2,139
|
|
UK
|
4,040
|
757
|
4,797
|
32
|
29
|
4,858
|
984
|
|
Other
Europe
|
2,520
|
336
|
2,856
|
42
|
14
|
2,912
|
772
|
|
Türkiye
|
1,523
|
276
|
1,799
|
4
|
33
|
1,836
|
531
|
|
Africa2
|
4,504
|
595
|
5,099
|
310
|
18
|
5,427
|
2,058
|
|
Common
Functions3
|
404
|
19
|
423
|
445
|
–
|
868
|
(33)
|
|
Eliminations
|
(65)
|
–
|
(65)
|
(36)
|
–
|
(101)
|
–
|
|
Group
|
18,409
|
2,418
|
20,827
|
923
|
103
|
21,853
|
6,451
|
Notes:
1.
Other revenue
includes lease revenue recognised under IFRS 16
‘Leases’.
2.
Total revenue
in Africa of €5,427 million includes €2,425 million
attributable to South Africa.
3.
Comprises
corporate functions and shared operations.
Notes to the unaudited condensed consolidated financial
statements
2 Segmental analysis (continued)
The
table below presents the comparative information for the six months
ended 30 September 2025.
|
|
Service
revenue
|
Equipment
revenue
|
Revenue
from contracts with customers
|
Other
revenue1
|
Interest
revenue
|
Total
segment revenue
|
Adjusted
EBITDAaL
|
|
|
€m
|
€m
|
€m
|
€m
|
€m
|
€m
|
€m
|
|
Six months ended 30 September 2025
|
|
|
|
|
|
|
|
|
Germany
|
5,425
|
396
|
5,821
|
166
|
9
|
5,996
|
2,191
|
|
UK
|
3,664
|
701
|
4,365
|
18
|
26
|
4,409
|
884
|
|
Other
Europe
|
2,415
|
331
|
2,746
|
48
|
10
|
2,804
|
835
|
|
Türkiye
|
1,327
|
237
|
1,564
|
3
|
34
|
1,601
|
485
|
|
Africa2
|
3,183
|
499
|
3,682
|
252
|
16
|
3,950
|
1,347
|
|
Common
Functions3
|
388
|
23
|
411
|
559
|
–
|
970
|
(14)
|
|
Eliminations
|
(75)
|
–
|
(75)
|
(46)
|
–
|
(121)
|
–
|
|
Group
|
16,327
|
2,187
|
18,514
|
1,000
|
95
|
19,609
|
5,728
|
Notes:
1.
Other revenue
includes lease revenue recognised under IFRS 16
‘Leases’.
2.
Total revenue
in Africa of €3,950 million includes €2,175 million
attributable to South Africa.
3.
Comprises
corporate functions and shared operations.
A reconciliation of Adjusted EBITDAaL, the Group’s measure of
segment profit, to the Group’s profit before taxation for the
financial period is shown below.
|
|
Six
months ended 30 September
|
|
|
|
2026
|
2025
|
|
|
€m
|
€m
|
|
Adjusted EBITDAaL
|
6,451
|
5,728
|
|
Restructuring
costs1
|
(317)
|
(186)
|
|
Interest
on lease liabilities
|
340
|
292
|
|
(Loss)/gain
on disposal of property, plant and equipment and intangible
assets
|
(9)
|
155
|
|
Depreciation
and amortisation on owned assets
|
(4,492)
|
(4,095)
|
|
Share
of results of equity accounted associates and joint
ventures
|
25
|
182
|
|
Impairment
charge
|
(4,850)
|
–
|
|
Other
income
|
3,369
|
86
|
|
Operating profit
|
517
|
2,162
|
|
Investment
and other income
|
288
|
1,085
|
|
Financing
costs
|
(1,178)
|
(1,134)
|
|
(Loss)/profit before taxation
|
(373)
|
2,113
|
Note:
1.
Restructuring
costs include €86 million (2025: €130 million) relating
to depreciation on leased assets. See page 62 for further
information.
Notes to the unaudited condensed consolidated financial
statements
2 Segmental analysis (continued)
The Group’s non-current assets are disaggregated in the table
below.
|
|
30
September
|
31
March
|
|
|
2026
|
2026
|
|
|
€m
|
€m
|
|
Non-current assets1
|
|
|
|
Germany
|
30,932
|
36,746
|
|
UK
|
13,876
|
13,953
|
|
Other
Europe
|
7,306
|
7,451
|
|
Türkiye
|
2,928
|
2,781
|
|
Africa
|
17,646
|
7,344
|
|
Common
Functions
|
2,139
|
2,195
|
|
Group
|
74,827
|
70,470
|
Note:
1.
Comprises
goodwill, other intangible assets and property, plant and
equipment.
Notes to the unaudited condensed consolidated financial
statements
3 Impairment review
A value in use assessment was performed for Vodafone Germany
following an increase in government bond yields over the period
since year-end.
The Group has recorded an impairment charge of €4.85 billion
with respect to its investment in Germany. The impairment charge
relates solely to goodwill and is recognised in the consolidated
income statement within operating profit. The impairment charge
reflects a significant increase in the discount rate arising from
higher yields on German government bond rates and an updated plan
of the financial performance of Vodafone Germany. For impairment
purposes only, the cash flows in this plan have been reduced to
remove the net financial benefit of announced but uncommitted
restructuring plans. The carrying value of Vodafone Germany has
been reduced to a value in use estimate of €25.5
billion.
Value in use assumptions
The table below shows key assumptions used in the value in use
calculation:
|
|
|
Germany
|
|
Pre-tax
risk adjusted discount rate1
|
|
8.0%
|
|
Long-term
growth rate
|
|
1.2%
|
|
Projected
adjusted EBITDAaL CAGR2
|
|
1.7%
|
|
Projected
capital expenditure2
|
|
19.1%
-20.2%
|
Sensitivity analysis
The following sensitivity analysis for the Group’s operations
in Germany reflects changes in pre-tax discount rate and projected
adjusted EBITDAaL CAGR1
assumptions. The associated impact of
the change in each key assumption does not consider any
consequential impact on other assumptions used in the impairment
review.
Government bond yields are a component of our pre-tax discount rate
and, were they to be higher at the next balance sheet date than
current levels would, in isolation, give rise to a further
impairment charge.
|
|
Recoverable
amount less carrying value
|
|
|
|
|
Germany
|
|
|
|
€bn
|
|
Base
case (prior to impairment charge recognition)
|
|
(4.9)
|
|
|
|
|
|
Change
in pre-tax discount rate
|
|
|
|
-
Decrease by 0.5pps
|
|
(2.6)
|
|
-
Increase by 0.5pps
|
|
(6.8)
|
|
|
|
|
|
Change
in projected adjusted EBITDAaL CAGR2
|
|
|
|
-
Decrease by 2.0pps
|
|
(7.5)
|
|
-
Increase by 2.0pps
|
|
(1.9)
|
Notes:
1.
The pre-tax
adjusted discount rate used in the value in use calculations for
the year ended 31 March 2026 was 7.5%.
2.
Projected
5-year adjusted EBITDAaL CAGR is the compound annual growth rate
from the end of FY27 of Vodafone Germany’s business plan.
Projected capital expenditure (which excludes licences and
spectrum) is expressed as capital expenditure as a percentage of
revenue from the end of FY27 in the business plan.
Notes to the unaudited condensed consolidated financial
statements
4 Taxation
|
|
Six
months ended 30 September
|
|
|
|
2026
|
2025
|
|
|
€m
|
€m
|
|
United
Kingdom corporation tax (expense)/income
|
|
|
|
Current period
|
(37)
|
(18)
|
|
Adjustments in respect of prior periods
|
2
|
(3)
|
|
Overseas
current tax (expense)/income
|
|
|
|
Current period
|
(660)
|
(439)
|
|
Adjustments in respect of prior periods
|
–
|
7
|
|
Total current tax expense
|
(695)
|
(453)
|
|
|
|
|
|
Deferred
tax on origination and reversal of temporary
differences
|
|
|
|
United Kingdom deferred tax
|
(2,247)
|
(143)
|
|
Overseas deferred tax
|
(282)
|
(465)
|
|
Total deferred tax expense
|
(2,529)
|
(608)
|
|
|
|
|
|
Total income tax expense
|
(3,224)
|
(1,061)
|
Deferred tax on losses in Luxembourg
The tax charge for the six months ended 30 September 2026 includes
a deferred tax charge of €165 million relating to the
utilisation of losses in Luxembourg. The Group does not currently
recognise deferred tax assets forecast to be utilised more than 60
years after the balance sheet date. For the recognised losses,
there is no material change from the year-end expected recovery
period of 46-50 years. The actual use of these losses and the
period over which they may be used is dependent on many factors
including the level of profitability in Luxembourg, changes in tax
law and any changes to the structure of the Group.
Further details about the Group’s tax losses can be found in
Note 6 ‘Taxation’ to the consolidated financial
statements of Vodafone Group Plc for the year ended 31 March
2026.
On 7 October 2026, the Luxembourg Government announced plans to
reduce the corporate income tax rate by one percentage point and
remove the 17-year expiry on tax losses incurred from 2017 onwards.
If both measures are enacted in H2 as expected, the rate reduction
would reduce the recognised deferred tax asset by approximately
€630 million. The removal of the expiry period is not
expected to result in recognition of an additional deferred tax
asset for those losses, as they would only be used once the Group's
substantial pre-2017 losses have been fully utilised.
Notes to the unaudited condensed consolidated financial
statements
4 Taxation (continued)
Deferred tax assets in the UK
Following the Group’s buy-out of CK Hutchison from the
VodafoneThree joint venture in July 2026, the VodafoneThree and
Group UK tax groups formed a single UK tax group. Forecasts for
this group indicate that external borrowing and other treasury and
head office costs would provide annual relief against taxable
profits in VodafoneThree. As such, the Group has concluded that
beyond taxable profits arising from the reversal of existing
deferred tax liabilities, there are insufficient expected future
taxable profits in the UK tax group entities to support recognition
of additional deferred tax assets.
This results in the derecognition of €2,247 million of
brought forward deferred tax assets, and non-recognition of
€143 million of current year deferred tax assets; total
€2,390 million. These are accounting adjustments with no
current cash tax impact where the underlying attributes,
principally tax losses and capital allowances, continue to be
carried forward for future utilisation. The Group expects this
position to result in ongoing volatility in the effective tax rate
reported in the income statement, principally when any brought
forward unrecognised tax assets are utilised or from movements in
deferred tax liabilities arising primarily from fair-valued swaps
and other investments measured at fair value through Other
Comprehensive Income. These movements will be excluded from the
AETR.
Deferred tax assets in Germany
The Group has reassessed the recoverability of its German deferred
tax assets based on updated profit forecasts and performed
sensitivity analysis, given the long period over which tax losses
are expected to be utilised. As a result, the Group has written
down its corporate income tax deferred tax asset by €169
million and has not recognised €45 million of additional
deferred tax assets on losses in the current period. These equate
to a 25% reduction in the deferred tax assets on losses not
supported by deferred tax liabilities. These are accounting
adjustments with no current cash tax impact where the underlying
attributes, principally tax losses, continue to be carried forward
for future utilisation. The remaining €821 million of
corporate income tax deferred tax assets on losses is forecast to
be utilised over approximately 50 years. Trade tax deferred tax
assets on losses of €408 million remain fully recognised and
are forecast to be used within 8 years.
Following the phased corporate income tax rate reductions between
2028 and 2032, enacted in July 2025, a €66 million charge
arose to remeasure the deferred tax balances, based on when the
Group expects they will unwind following the updated profit
forecast. Further remeasurements will continue to arise until the
final rate reduction becomes effective in 2032. Together, the
€169 million write-down and the €66 million tax rate
charge total €235 million.
Notes to the unaudited condensed consolidated financial
statements
5 Earnings per share
|
|
Six
months ended 30 September
|
|
|
|
2026
|
2025
|
|
|
Millions
|
Millions
|
|
Weighted
average number of shares for basic earnings per share
|
23,078
|
24,509
|
|
Effect
of dilutive potential shares: restricted shares and share
options
|
–
|
133
|
|
Weighted average number of shares for diluted earnings per
share
|
23,078
|
24,642
|
|
|
|
|
|
Earnings per share attributable to owners of the parent during the
period
|
|
|
|
|
Six
months ended 30 September
|
|
|
|
2026
|
2025
|
|
|
€m
|
€m
|
|
(Loss)/profit for basic and diluted earnings per share
|
(4,789)
|
829
|
|
|
|
|
|
|
eurocents
|
eurocents
|
|
Basic (loss)/earnings per share
|
(20.75)
|
3.38
|
|
Diluted (loss)/earnings per share
|
(20.75)
|
3.36
|
All operations are classified as continuing
operations.
6 Dividends
|
|
Six
months ended 30 September
|
|
|
|
2026
|
2025
|
|
|
€m
|
€m
|
|
Declared during the financial period:
|
|
|
|
Final
dividend for the year ended 31 March 2026: 2.3625 eurocents per
share
|
544
|
558
|
|
(2025:
2.25 eurocents per share)
|
|
|
|
|
|
|
|
Proposed after the end of the reporting period and not recognised
as a liability:
|
|
|
|
Interim
dividend for the year ending 31 March 2027: 2.306 eurocents per
share
|
534
|
537
|
|
(2026:
2.25 eurocents per share)
|
|
|
Notes to the unaudited condensed consolidated financial
statements
7 Joint ventures and associates
|
|
30
September
|
31
March
|
|
|
2026
|
2026
|
|
|
€m
|
€m
|
|
Oak
Holdings 1 GmbH
|
5,178
|
5,207
|
|
VodafoneZiggo
Group Holdings B.V.
|
–
|
–
|
|
Other
|
129
|
87
|
|
Investments in joint ventures
|
5,307
|
5,294
|
|
|
|
|
|
Safaricom
PLC1
|
–
|
539
|
|
Maziv
Proprietary Limited
|
713
|
623
|
|
Other
|
13
|
36
|
|
Investments in associates
|
726
|
1,198
|
|
|
|
|
|
Investments in joint ventures and associates
|
6,033
|
6,492
|
|
|
|
|
|
TPG
Telecom Limited
|
(143)
|
(102)
|
|
Share of net liabilities in associates
|
(143)
|
(102)
|
Note:
1. A
controlling interest in Safaricom PLC was purchased in June 2026,
at which time it became a subsidiary of the Group. See note 9
‘Acquisitions and disposals’ for further
information.
VodafoneZiggo - Assets held for sale
The Group’s investment in VodafoneZiggo Group Holding B.V.
(‘VodafoneZiggo’) was classified as held for sale at 31
March 2026.
On 31 July 2026, the Group completed the sale of its interests in
VodafoneZiggo to Liberty Global Ltd (‘Liberty Global’).
The transaction consideration comprised cash of €973 million
and a 10% shareholding in Liberty Global Holding B.V. (‘Ziggo
Group’), which owns 100% of both VodafoneZiggo and Liberty
Global’s Belgian subsidiary, Telenet Group Holding.
€908 million of the transaction proceeds were used to settle
the Group’s loan receivable from VodafoneZiggo and are
recorded in Disposal of investments in the Consolidated statement
of cashflows, with the remaining €65 million recorded in
Disposal of interests in associates and joint ventures. A gain of
€26 million has been recognised in Other Income in the
consolidated income statement in relation to the
transaction.
OXG Glasfaser Beteiligungs GmbH (‘OXG’)
The Group has made certain commitments to its new joint venture
partner in OXG.
See note 10 ‘Fair value of financial instruments’ for
further information.
Vodafone Idea Limited (‘VIL’)
On 31 December 2025, the Group reached an agreement with VIL to
settle certain obligations under which the Group set aside 3.1% of
VIL’s equity (3,280 million shares) for VIL’s
benefit. During September 2026, the Group put in place a
documents escrow arrangement which gives VIL effective control over
the disposal of these shares resulting in the de-recognition of the
shares and a remaining 13.0% equity investment for accounting
purposes. The earmarked shares were held at nil value in the
Group’s consolidated statement of financial position and the
Group has recognised a gain of €256 million in Other income
in the consolidated income statement on settlement of this
obligation.
Notes to the unaudited condensed consolidated financial
statements
8 Reconciliation of net cash flow from operating
activities
|
|
Six
months ended 30 September
|
|
|
|
2026
|
2025
|
|
|
€m
|
€m
|
|
(Loss)/profit for the financial period
|
(3,597)
|
1,052
|
|
Investment and other income
|
(288)
|
(1,085)
|
|
Financing costs
|
1,178
|
1,134
|
|
Income tax expense
|
3,224
|
1,061
|
|
Operating profit
|
517
|
2,162
|
|
Adjustments
for:
|
|
|
|
Share-based payments and other non-cash charges
|
54
|
38
|
|
Depreciation and amortisation
|
6,545
|
5,960
|
|
Loss/(gain) on disposal of property, plant and equipment and
intangible assets
|
1
|
(154)
|
|
Share of results of equity accounted associates and joint
ventures
|
(25)
|
(182)
|
|
Impairment reversal
|
4,850
|
–
|
|
Other income
|
(3,369)
|
(86)
|
|
(Increase)/decrease in inventory
|
(90)
|
8
|
|
Increase in trade and other receivables
|
(627)
|
(767)
|
|
Decrease in trade and other payables
|
(796)
|
(1,379)
|
|
Cash generated by operations
|
7,060
|
5,600
|
|
Taxation
|
(706)
|
(508)
|
|
Inflow from operating activities
|
6,354
|
5,092
|
Notes to the unaudited condensed consolidated financial
statements
9 Acquisitions and disposals
Purchase of subsidiaries
Acquisitions of subsidiaries are accounted for using the
acquisition method. The cost of the acquisition is measured at the
aggregate of the fair values at the date of exchange of assets
given, liabilities incurred or assumed and equity instruments
issued by the Group. Acquisition-related costs are recognised in
the consolidated income statement as incurred. The acquiree’s
identifiable assets and liabilities are recognised at their fair
values at the acquisition date, which is the date on which control
is transferred to the Group. Goodwill is measured as the excess of
the sum of the consideration transferred, the amount of any
non-controlling interests in the acquiree and the fair value of the
Group’s previously held equity interest in the acquiree, if
any, over the net amount of identifiable assets acquired and
liabilities assumed at the acquisition date. The interest of the
non-controlling shareholders in the acquiree may initially be
measured either at fair value or at the non-controlling
shareholders’ proportion of the net fair value of the
identifiable assets acquired, liabilities and contingent
liabilities assumed. The choice of measurement basis is made on an
acquisition-by-acquisition basis.
The aggregate cash consideration in respect of the purchase of
subsidiaries, net of cash acquired, is summarised
below.
|
|
Six
months ended 30 September
|
|
|
|
2026
|
2025
|
|
|
€m
|
€m
|
|
Stake
increase in Safaricom PLC
|
(1,379)
|
–
|
|
Net
cash acquired
|
254
|
27
|
|
|
(1,125)
|
27
|
Stake increase in Safaricom PLC
On 30 June 2026, the Group announced that its African subsidiary,
Vodacom Group Ltd (‘Vodacom’) had completed the
acquisition of 15% of the issued share capital in Safaricom PLC
(‘Safaricom’) from the Government of Kenya for cash
consideration of KES 204 billion (€1.4 billion). The
acquisition has increased the Group’s shareholding in
Safaricom to 55%, resulting in a controlling equity interest for
the Group; consequently, Safaricom is consolidated by the Group
from the purchase date.
The primary reasons for acquiring the business are to further
enhance the Group’s earnings profile, broaden our exposure to
attractive high-growth markets and increase the contribution from
financial services and digital businesses.
The transaction is, however, subject to a legal challenge. See note
11 ‘Contingent liabilities and legal proceedings’ for
further information.
As part of the overall arrangement to acquire the controlling
interest in Safaricom, the Group entered into a dividend purchase
agreement with the Government of Kenya, under which it acquired the
rights to receive a specified value of future dividends on the
Government of Kenya’s remaining Safaricom shareholding for an
upfront consideration. This is a transaction with a non-controlling
shareholder and is recorded within equity. KES 40 billion
(€272 million) was advanced to the Government of Kenya on
completion and KES 9 billion (€59 million) dividends have
subsequently been received. This agreement is, however, subject to
a legal challenge. See note 11 ‘Contingent liabilities and
legal proceedings’.
Notes to the unaudited condensed consolidated financial
statements
9 Acquisitions and disposals (continued)
A purchase price allocation was performed as at the acquisition
date. The allocation remains provisional due to the volume and
nature of assets and liabilities being assessed. The provisional
purchase price allocation is set out in the table
below.
|
|
€m
|
|
Other
intangible assets1
|
4,140
|
|
Property,
plant and equipment
|
2,151
|
|
Other
investments
|
84
|
|
Investments
in associates
|
3
|
|
Inventory
|
12
|
|
Trade
and other receivables2
|
298
|
|
Cash
and cash equivalents
|
254
|
|
Current
and deferred taxation
|
(897)
|
|
Borrowings
|
(1,219)
|
|
Trade
and other payables
|
(674)
|
|
Provisions
|
(23)
|
|
Net identifiable assets acquired
|
4,129
|
|
Non-controlling
interests3
|
(1,959)
|
|
Goodwill4
|
3,095
|
|
Total consideration5
|
5,265
|
Notes:
1.
Identifiable
intangible assets of €4,140 million consisted of acquired
licences of €925 million, computer software of €91
million, customer relationships of €2,511 million and brand
of €613 million.
2.
Includes
gross contractual amounts receivable of €439 million and a
best estimate of contractual cash flows not expected to be
collected of €141m.
3.
Measured
at the non-controlling shareholders’ proportion of the net
fair value of the identifiable assets acquired, liabilities and
contingent liabilities assumed.
4.
The
goodwill is attributable to future profits generated from new
customers and the synergies expected to arise after the
Group’s acquisition of the business. The goodwill recognised
is not tax deductible. In the six months ended 30 September 2026,
the Group’s reported goodwill has been updated to reflect the
above addition relating to the acquisition of Safaricom, the
impairment recorded in respect of Vodafone Germany (see note 3
‘Impairment review’) and foreign exchange
movements.
5.
Total
consideration includes cash paid of €1,379 million with the
remainder comprising the fair value of the previously held 40%
interest in Safaricom. A gain of €3,022 million has been
recognised on the remeasurement of the previously held interest to
fair value, which is recorded in Other income in the Consolidated
income statement.
Transaction costs of €10 million were charged to Other income
in the Group’s consolidated income statement in the six
months ended 30 September 2026.
From the date of acquisition, the acquired entities have
contributed €826 million of revenue and a profit of
€139 million towards the profit for the financial period of
the Group. If the acquisition had taken place at the beginning of
the financial period, revenue would have been €22,602 million
and the loss for the financial period would have been €3,470
million.
Transactions with non-controlling shareholders in
subsidiaries
The aggregate cash consideration in respect of transactions with
non-controlling shareholders in subsidiaries, net of cash acquired,
is as follows:
|
|
Six
months ended 30 September
|
|
|
|
2026
|
2025
|
|
|
€m
|
€m
|
|
Buyout
of VodafoneThree in the UK
|
(5,019)
|
–
|
|
Other
|
(104)
|
103
|
|
|
(5,123)
|
103
|
Buyout to obtain full ownership of VodafoneThree in the
UK
On 30 July 2026, the Group announced that it had completed the
buyout of CK Hutchison Group Telecom Holding Limited’s
(‘CKHGT’) 49% stake in VodafoneThree for £4,300
million (€5,019 million). As a result, Vodafone now owns 100%
of VodafoneThree. The transaction was accounted for as a
transaction with non-controlling interests, with a loss of
€2,716 million recognised directly in equity.
Notes to the unaudited condensed consolidated financial
statements
10 Fair value of financial instruments
|
|
30
September
|
31
March
|
|
|
2026
|
2026
|
|
|
€m
|
€m
|
|
Financial assets at fair value1
|
|
|
|
Money
market funds (included within Cash and cash
equivalents)2
|
2,316
|
3,708
|
|
Debt
and equity securities (included within Other
investments)3
|
4,502
|
4,845
|
|
Derivative
and other financial instruments (included within Trade and other
receivables)4
|
2,948
|
2,975
|
|
Trade
receivables at fair value through Other comprehensive income
(included within Trade and other receivables)5
|
1,124
|
699
|
|
|
10,890
|
12,227
|
|
|
|
|
|
Financial liabilities at fair value1
|
|
|
|
Derivative
and other financial instruments (included within Trade and other
payables)4
|
2,306
|
1,812
|
|
|
2,306
|
1,812
|
Notes:
1. The
fair value of assets and liabilities are classified in the Fair
Value hierarchy as follows: Level 1 comprises items where the fair
value is determined by unadjusted quoted prices in active markets.
Level 2 comprises items where the fair value is determined from
inputs other than quoted prices, that are observable for the asset
or liability, either directly or indirectly by unadjusted market
quoted prices in active markets and market accepted valuation
techniques. Level 3 comprises items where the fair value is
determined by including one or more unobservable inputs to the
valuation methodology.
2. Items
are measured at fair value and the valuation basis is Level
1.
3. Quoted
debt and equity securities of €1,090 million (31 March 2026:
€1,578 million) are measured at fair value and classified as
Level 1. Further equity and debt securities of €3,300 million
(31 March 2026: €3,254 million) are measured at fair value
and classified as Level 2. The remaining balance of €112
million (31 March 2026: €13 million) is measured at fair
value and classified as Level 3 due to some of the inputs to the
valuation model being unobservable inputs.
4. A
derivative liability of €58 million is measured at fair value
and classified as Level 3. Remaining derivative financial assets
and liabilities are measured at fair value and classified as Level
2. €2,802 million (31 March 2026: €2,882 million) of
derivative and other financial assets and €2,237 million (31
March 2026: €1,719 million) of derivative and other financial
liabilities are classified as non-current.
5. Trade
receivables at fair value through Other comprehensive income are
measured at fair value and classified as Level 2. Of this,
€507 million (31 March 2026: €319 million) are
classified as non-current.
The fair value of the Group's financial assets held at amortised
cost approximates their fair value.
The fair value of the Group's financial liabilities held at
amortised cost approximate to fair value with the exception of
long-term bonds with a carrying value of €35,071 million (31
March 2026: €32,285 million). These bonds have a fair value
at 30 September 2026 of €30,721 million (31 March 2026:
€29,432 million), based on Level 1 of the fair value
hierarchy.
New joint venture partner for OXG Glasfaser Beteiligungs GmbH
(‘OXG’)
On 29 October 2026, Itaparica Investments S.A.
(‘Itaparica’), a subsidiary of Société
Générale S.A., replaced Geodesia Holdings S.à r.l.
as the Group’s new joint venture partner in OXG.
Itaparica will provide equity funding of up to €2,250 million
to OXG over a period of up to five and a half years. The
timing and amount of the equity funding provided by Itaparica will
depend on OXG’s fibre network investment agreed by Itaparica
and the Group.
The Group has provided guarantees to Itaparica in respect of the
minimum return it will realise on the eventual disposal of its OXG
shares and Itaparica has agreed to cap its potential maximum
return. The primary undertakings provide that on the disposal
of Itaparica’s OXG shares, through an early buy-out or an
auction at the end of the investment period, Itaparica will receive
a guaranteed return based on Euribor plus a variable margin,
subject to a defined range. Any proceeds in excess of
Itaparica’s maximum return will be retained by the
Group. The Group recognised a fair value through profit and
loss derivative liability of €58 million on 30 September
2026. If Itaparica’s shares have not been sold to a third
party by the end of the five-and-a-half-year period, the Group is
required to purchase the shares for an amount within the defined
range.
The Group can opt to settle any payment obligations arising under
the above guarantees to Itaparica in cash or Vodafone shares at its
discretion. The Group can also opt to settle some or all of such
payment obligations, in certain circumstances, with its own OXG
shares if Itaparica sells its OXG shares to a third
party.
Notes to the unaudited condensed consolidated financial
statements
10 Fair value of financial instruments
(continued)
Level 3 financial instruments
The derivative financial instrument arising from the restructuring
of OXG is classified within Level 3 of the fair value hierarchy
under IFRS 13, as certain key inputs used in its fair value
measurement are unobservable. In valuing the derivative liability,
management identified and modelled three possible exit scenarios
occurring two, three and five years after the balance sheet date,
with a probability weighting applied to each scenario. The net
liability or asset at each of these exit dates is driven by the
timing and value of the equity contributions by both shareholders,
the performance of the business, the maximum and minimum guaranteed
return to Itaparica and the selected exit date.
The fair value of the instrument has been determined using a Monte
Carlo simulation which draws on both observable and unobservable
market data inputs. OXG’s forecast cash flows represent
management’s best estimate of future business performance and
are subject to change. Level 2 market data inputs include the
Euribor used in determining the minimum and maximum returns. Key
unobservable inputs that require judgement include cost of equity
and the share price volatility of comparable listed companies to
derive the equity value of the OXG shares.
The primary judgement that could have a material impact on the
valuation of the derivative financial instrument is the cost of
equity used to derive the equity value of Itaparica’s OXG
shares at the exit date of each scenario. An increase or decrease
of 0.5% in the cost of equity of 12.5% would result in a €124
million increase or €139 million decrease in the net
derivative liability, respectively.
Notes to the unaudited condensed consolidated financial
statements
11 Contingent liabilities and legal proceedings
Legal proceedings
Note 29 ‘Contingent liabilities and legal proceedings’
to the consolidated financial statements of Vodafone Group Plc for
the year ended 31 March 2026 sets forth the Group’s
contingent liabilities and legal proceedings as of 31 March 2026.
There have been no material changes to the Group’s contingent
liabilities or legal proceedings during the period covered by this
report, except as disclosed below.
Tax cases
Netherlands tax case
Vodafone Europe BV (‘VEBV’) received assessments
totalling €267 million in tax and interest from the Dutch tax
authorities, who challenged the application of the arm’s
length principle in relation to various intra-group financing
transactions. VEBV appealed against these assessments to the
District Court of the Hague which issued its judgement in July
2023, upholding VEBV’s appeal in relation to the majority of
issues and requiring the Dutch tax authorities to significantly
reduce its assessments. VEBV and the Dutch tax authorities
subsequently appealed to the Court of Appeal of The Hague.
During the period, the Court of Appeal published its judgement,
many aspects of which were in VEBV’s favour. VEBV and the
Dutch State Secretary for Finance have both appealed the judgement
to the Dutch Supreme Court and, as a result, the litigation remains
ongoing.
The Group continues to believe it has robust defences but has
increased its provision for tax and accrued interest to reflect the
Court of Appeal judgement and the Group’s current view of the
probable financial outflow required to fully resolve the issue. The
provision is not material to the Group.
Other cases in the Group
Germany: price increase class action
In November 2023, the Verbraucherzentrale Bundesverband (Federation
of German Consumer Organisations, ‘the Federation’)
initiated a class action against Vodafone Germany in the Hamm
Higher Regional Court. Vodafone Germany implemented price increases
of €5 per month for fixed lines services in 2023 in response
to higher costs to a portion of our customer base. Vodafone
Germany’s decision to impose price increases was partly based
upon its interpretation of the contract amendment provisions in the
German Telecommunications Code
(‘Telekommunikationsgesetz’) which appeared to
recognise that providers could reserve a unilateral amendment right
in their terms where customers were given a cost-free right to
terminate.
The claim alleges that terms regarding price increases in the
consumer contracts entered into by Vodafone Germany’s
customers up until August 2023 are invalid under German civil law
and seeks reimbursement of the additional charges plus interest.
Customers must enter their details onto the register of collective
actions on the Federal Office of Justice website in order to
participate in the claim. The register opened in April 2024 and as
at 30 September 2026, approximately 118,500 customers had
registered. Vodafone Germany filed its defence in August 2024.
Proceedings in the class action were suspended pending the outcome
of a referral to the Court of Justice of the European Union
(‘CJEU’) in a related case brought by the Federation
seeking an injunction to prevent the implementation of price
increases by Vodafone Germany in reliance upon a contract term
reserving the right to make unilateral changes. Vodafone Germany
was successful at first instance but on appeal the Higher Regional
Court of Dusseldorf decided to refer a question to the CJEU about
the interpretation of the EU Directive upon which the relevant part
of the German Telecommunications Code is based. In September 2026,
the CJEU issued its judgement deciding that the Directive does not
create itself a unilateral right to change the terms of a consumer
contract. A hearing took place in the injunction proceedings before
the Higher Regional Court of Dusseldorf on 3 November 2026. The
decision will be published on 26 November 2026 although the Court
has indicated that it will grant the request for an injunction on
the basis that the relevant contract term is invalid. In the class
action proceedings a hearing before the Hamm Higher Regional
Court has been scheduled on 3 November 2027.
The Group is continuing to defend the class action and assessing
the impact of the CJEU judgement. A provision immaterial to the
financial statements has been recorded.
Notes to the unaudited condensed consolidated financial
statements
11 Contingent liabilities and legal proceedings
(continued)
Germany: investigation by competition authority regarding
1&1
In December 2021 1&1 entered into an agreement with Vantage
Towers for the provision of infrastructure for tower sites. Vantage
Towers sub-contracted certain aspects of the delivery under the
agreement to Vodafone Germany.
In March 2023, Vodafone Germany and Vodafone Group (together
‘Vodafone’) were informed that 1&1 had submitted a
complaint to the Bundeskartellamt (‘BkA’), the
competition authority in Germany, alleging infringements of
competition law. Following the start of a formal investigation in
June 2023, the BkA issued a Statement of Objections on 11 April
2025 with its view that the delayed provision by Vodafone and
Vantage Towers of the contractually agreed tower sites acted as an
obstacle to 1&1’s market entry and an abuse of relative
market power. Vodafone submitted its response to the
Statement of Objections to the BkA on 2 July 2025. Vodafone
received a letter in September 2025 from the BkA stating that, if
an infringement decision is issued, it is likely to include an
order for disgorgement of the alleged economic advantage obtained
as a result of the alleged infringement. In November 2025 Vodafone
filed an application before the Higher Regional Court of Dusseldorf
challenging procedural irregularities in the BkA’s
investigative process and seeking an interim injunction to prevent
the BkA from issuing an infringement decision. The Court dismissed
Vodafone’s request for an interim injunction in September
2026 for procedural reasons and scheduled a hearing in January 2027
on Vodafone’s application.
While the outcome is uncertain, the Group believes it has strong
defences and that it is probable no present obligation
exists.
Germany: teleshopping channels v Vodafone Germany
In August 2026, four teleshopping channels issued a claim against
Vodafone Germany in the Munich Regional Court alleging breaches of
competition law in relation to the commercial model for determining
the charges applied to TV channels for providing access to
broadband cable networks. The claimants are seeking damages of
approximately €239 million for overpaid fees and lost profits
plus other unquantified losses and an injunction preventing the
continued application of the commercial model. Vodafone Germany is
due to file its Defence in April 2027.
The Group intends to defend the claim robustly and believes it is
probable that no present obligation exists.
Kenya: challenge to the acquisition of Safaricom
shares
The Group acquired a controlling interest in Safaricom PLC
(‘Safaricom’) as the result of the acquisition of 15%
of Safaricom’s equity from the Government of Kenya
(‘the Government’) - see note 9 ‘Acquisitions and
disposals’.
The High Court of Kenya heard a petition on 29 June 2026 alleging
that the sale of the Government’s 15% shareholding would be
unlawful. Judgement was delivered on 15 September 2026 in which the
court nullified the sale and the related dividend rights
transaction (‘the Judgement’). Appeals against the
Judgement have been filed by the Government and Group respondents
with the Court of Appeal (Nairobi) (‘the Court’). The
petitioners have also appealed certain aspects of the Judgement.
An application to stay the execution of the Judgement was also
submitted to the Court by the Government and supported by the
Group. On 13 October 2026 the Court ordered that the prevailing
status quo in respect of the shares and purchase consideration
shall be maintained, such that Vodafone Kenya Limited’s name
remains the registered holder of the shares, pending the hearing of
the appeal. The Court further directed that the hearing of the
appeal be expedited; the Group expects an appeal date to be set
before the end of December 2026.
Notes to the unaudited condensed consolidated financial
statements
12 Related party transactions
Related party transactions with the Group’s joint
arrangements and associates primarily comprise fees for the use of
products and services including network airtime and access charges,
fees for the provision of network infrastructure and cash pooling
arrangements. No related party transactions have been entered into
during the period which might reasonably affect any decisions made
by the users of these unaudited condensed consolidated financial
statements except as disclosed below.
|
|
Six
months ended 30 September
|
|
|
|
2026
|
2025
|
|
|
€m
|
€m
|
|
Sales
of goods and services to associates
|
30
|
3
|
|
Purchase
of goods and services from associates
|
1
|
2
|
|
Sales
of goods and services to joint ventures
|
89
|
150
|
|
Purchase
of goods and services from joint ventures
|
243
|
306
|
|
Interest
income receivable from associates
|
10
|
–
|
|
Interest
expense payable to associates
|
10
|
–
|
|
Interest
income receivable from joint ventures1
|
23
|
29
|
|
Interest
expense payable to joint ventures1
|
84
|
86
|
|
|
|
|
|
|
30
September
|
31
March
|
|
|
2026
|
2026
|
|
|
€m
|
€m
|
|
Trade
balances owed:
|
|
|
|
by associates
|
6
|
9
|
|
to associates
|
1
|
2
|
|
by joint ventures
|
68
|
220
|
|
to joint ventures
|
288
|
304
|
|
Other
balances owed by associates
|
–
|
11
|
|
Other
balances owed to associates
|
140
|
126
|
|
Other
balances owed by joint ventures1
|
361
|
1,219
|
|
Other
balances owed to joint ventures2
|
3,136
|
3,192
|
Notes:
1.
Amounts arise
primarily through VodafoneZiggo and Oak Holdings 1 GmbH. Interest
is paid/received in line with market rates.
2.
Amounts
are primarily in relation to leases of tower space from Oak
Holdings 1 GmbH.
In the six months ended 30 September 2026, the Group made
contributions to defined benefit pension schemes of €83
million (six months ended 30 September 2025: €26
million).
In the six months ended 30 September 2026, cash dividend
equivalents of €2.8 million were paid to Board and Executive
Committee members (six months ended 30 September 2025: €1.1
million).
Dividends received from joint ventures and associates are disclosed
in the consolidated statement of cash flows.
13 Subsequent events
Transformation plan in Germany
On 9 November 2026, the Group announced around 2,300 role
reductions over the next two financial years as a part of its
transformation plan in Germany. The Group anticipates
recognising a restructuring provision in the second half of the
financial year. The transformation plan is included in the
€0.7 billion restructuring and integration cash costs
previously disclosed as expected to be incurred during the year
ending 31 March 2027.
|
Independent review report to Vodafone Group Plc
|
|
|
|
|
Conclusion
We have been engaged by Vodafone Group Plc (‘the
Group’) to review the unaudited condensed consolidated
financial statements in the half-yearly financial report for the
six months ended 30 September 2026 which comprises the consolidated
income statement, the consolidated statement of comprehensive
income, the consolidated statement of financial position, the
consolidated statement of changes in equity, the consolidated
statement of cash flows and the related notes 1 to 13 to the
unaudited condensed consolidated financial statements. We have read
the other information contained in the half yearly financial report
and considered whether it contains any apparent misstatements or
material inconsistencies with the information in the unaudited
condensed consolidated financial statements.
Based on our review, nothing has come to our attention that causes
us to believe that the unaudited condensed consolidated financial
statements in the half-yearly financial report for the six months
ended 30 September 2026 is not prepared, in all material respects,
in accordance with International Accounting Standard 34
‘Interim Financial Reporting’ as issued by the
International Accounting Standards Board (‘IASB’) and
as adopted by the United Kingdom, and the Disclosure Guidance and
Transparency Rules of the United Kingdom’s Financial Conduct
Authority.
Basis for Conclusion
We conducted our review in accordance with International Standard
on Review Engagements 2410 (UK) "Review of Interim Financial
Information Performed by the Independent Auditor of the Entity"
(ISRE) issued by the Financial Reporting Council. A review of
interim financial information consists of making enquiries,
primarily of persons responsible for financial and accounting
matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in
accordance with International Standards on Auditing (UK) and
consequently does not enable us to obtain assurance that we would
become aware of all significant matters that might be identified in
an audit. Accordingly, we do not express an audit
opinion.
As disclosed in note 1 ‘Basis of Preparation’, the
annual financial statements of the Group are prepared in accordance
with UK adopted International Accounting Standards
(‘IAS’), with International Financial Reporting
Standards (‘IFRS’) as issued by the IASB and with the
requirements of the UK Companies Act 2006. The unaudited condensed
consolidated financial statements included in this half-yearly
financial report has been prepared in accordance with International
Accounting Standard 34, ‘Interim Financial Reporting’
as issued by the IASB and as adopted by the United Kingdom, and the
Disclosure Guidance and Transparency Rules of the United
Kingdom’s Financial Conduct Authority.
Conclusions Relating to Going Concern
Based on our review procedures, which are less extensive than those
performed in an audit as described in the Basis for Conclusion
section of this report, nothing has come to our attention to
suggest that management have inappropriately adopted the going
concern basis of accounting or that management have identified
material uncertainties relating to going concern that are not
appropriately disclosed.
This conclusion is based on the review procedures performed in
accordance with this ISRE, however future events or conditions may
cause the entity to cease to continue as a going
concern.
Responsibilities of the directors
The directors are responsible for preparing the half-yearly
financial report in accordance with the Disclosure Guidance and
Transparency Rules of the United Kingdom's Financial Conduct
Authority.
In preparing the half-yearly financial report, the directors are
responsible for assessing the Group’s ability to continue as
a going concern, disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting
unless the directors either intend to liquidate the Group or to
cease operations, or have no realistic alternative but to do
so.
Auditor’s Responsibilities for the review of the financial
information
In reviewing the half-yearly report, we are responsible for
expressing to the Group a conclusion on the unaudited condensed
consolidated financial statements in the half-yearly financial
report. Our conclusion, including our Conclusions Relating to Going
Concern, are based on procedures that are less extensive than audit
procedures, as described in the Basis for Conclusion paragraph of
this report.
Use of our report
This report is made solely to the Group in accordance with guidance
contained in International Standard on Review Engagements 2410 (UK)
"Review of Interim Financial Information Performed by the
Independent Auditor of the Entity" issued by the Financial
Reporting Council. To the fullest extent permitted by law, we do
not accept or assume responsibility to anyone other than the Group,
for our work, for this report, or for the conclusions we have
formed.
Ernst & Young LLP
London
10 November 2026
|
Non-GAAP measures
|
|
|
|
|
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
50
|
Revenue
|
Pages
51, 53 and 54
|
|
Organic
service revenue growth
|
Page
50
|
Service
revenue
|
Pages
51, 53 and 54
|
|
Organic
mobile service revenue growth
|
Page
50
|
Service
revenue
|
Pages
51, 53 and 54
|
|
Organic
fixed service revenue growth
|
Page
50
|
Service
revenue
|
Pages
51, 53 and 54
|
|
Organic
Vodafone Business service revenue growth
|
Page
50
|
Service
revenue
|
Pages
51, 53 and 54
|
|
South
Africa: Financial services organic revenue growth
|
Page
50
|
Service
revenue
|
Pages
51, 53 and 54
|
|
Vodacom
International: M-Pesa organic revenue growth
|
Page
50
|
Service
revenue
|
Pages
51, 53 and 54
|
|
Egypt:
Financial services revenue (Vodafone Cash) organic revenue
growth
|
Page
50
|
Service
revenue
|
Pages
51, 53 and 54
|
|
Group
Adjusted EBITDAaL
|
Page
50
|
Operating
profit
|
Page
32
|
|
Organic
Adjusted EBITDAaL growth
|
Page
50
|
Operating
profit
|
Pages
52, 53 and 54
|
|
Organic
Adjusted EBITDAaL margin growth
|
Page
50
|
Operating
profit
|
Page
52
|
|
Other metrics
|
|
|
|
|
Adjusted
profit attributable to owners of the parent
|
Page
55
|
Profit
attributable to owners of the parent
|
Page
55
|
|
Adjusted
basic earnings per share
|
Page
55
|
Basic
earnings per share
|
Page
56
|
|
Cash flow, funding and capital allocation metrics
|
|
|
|
|
Free
cash flow
|
Page
56
|
Inflow
from operating activities
|
Page
57
|
|
Adjusted
free cash flow
|
Page
56
|
Inflow
from operating activities
|
Pages
17 and 57
|
|
Gross
debt
|
Page
56
|
Borrowings
|
Page
57
|
|
Net
debt
|
Page
56
|
Borrowings
less cash and cash equivalents
|
Page
57
|
|
Pre-tax
ROCE (controlled)
|
Page
58
|
ROCE
calculated using GAAP measures
|
Pages
58 and 59
|
|
Post-tax
ROCE (controlled and associates/joint ventures)
|
Page
58
|
ROCE
calculated using GAAP measures
|
Pages
58 and 59
|
|
Financing and Taxation metrics
|
|
|
|
|
Adjusted
net financing costs
|
Page
60
|
Net
financing costs
|
Page
15
|
|
Adjusted
profit before taxation
|
Page
60
|
Profit
before taxation
|
Page
61
|
|
Adjusted
income tax expense
|
Page
60
|
Income
tax expense
|
Page
61
|
|
Adjusted
effective tax rate
|
Page
60
|
Income
tax expense
|
Page
61
|
|
Adjusted
share of results of equity accounted associates and joint
ventures
|
Page
60
|
Share
of results of equity accounted associates and joint
ventures
|
Page
61
|
|
Adjusted
share of results of equity accounted associates and joint ventures
used in post-tax ROCE
|
Page
60
|
Share
of results of equity accounted associates and joint
ventures
|
Page
61
|
Non-GAAP measures
Performance metrics
|
Non-GAAP measure
|
Purpose
|
Definition
|
|
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.
|
Adjusted EBITDAaL margin
Adjusted EBITDAaL margin is Adjusted EBITDAaL divided by
Revenue.
Organic growth
Organic growth presents performance on a comparable basis,
excluding the impact of foreign exchange rates, mergers and
acquisitions, the hyperinflation adjustment in Türkiye and
other adjustments to improve the comparability of results between
periods.
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.
Service revenue growth in Türkiye excluding the impact of the
hyperinflationary adjustment
This growth metric presents performance in Türkiye excluding
the hyperinflationary adjustment recorded in the Group’s
consolidated financial statements in accordance with IAS 29
‘Financial Reporting in Hyperinflationary
Economies’.
Non-GAAP measures
|
Six months ended 30 September 2026
|
|
|
|
|
|
|
|
|
|
|
|
Reported
growth
|
M&A
and Other
|
Foreign
exchange
|
Organic
growth
|
|
|
|
|
H1 FY27
|
H1 FY26
|
||||
|
|
|
€m
|
€m
|
%
|
pps
|
pps
|
%
|
|
Service revenue
|
|
|
|
|
|
|
|
|
Germany
|
5,483
|
5,425
|
1.1
|
(0.7)
|
–
|
0.4
|
|
|
|
Mobile
service revenue
|
2,568
|
2,579
|
(0.4)
|
–
|
–
|
(0.4)
|
|
|
Fixed
service revenue
|
2,915
|
2,846
|
2.4
|
(1.3)
|
–
|
1.1
|
|
UK
|
4,040
|
3,664
|
10.3
|
(9.6)
|
0.2
|
0.9
|
|
|
|
Mobile
service revenue
|
3,212
|
2,862
|
12.2
|
(12.4)
|
0.2
|
–
|
|
|
Fixed
service revenue
|
828
|
802
|
3.2
|
1.3
|
0.3
|
4.8
|
|
Other
Europe
|
2,520
|
2,415
|
4.3
|
(2.4)
|
(0.5)
|
1.4
|
|
|
Türkiye1
|
1,523
|
1,327
|
14.8
|
1.9
|
16.1
|
32.8
|
|
|
Africa
|
4,504
|
3,183
|
41.5
|
(23.8)
|
(4.3)
|
13.4
|
|
|
Common
Functions2
|
404
|
388
|
|
|
|
|
|
|
Eliminations
|
(65)
|
(75)
|
|
|
|
|
|
|
Total service revenue
|
18,409
|
16,327
|
12.8
|
(7.3)
|
0.3
|
5.8
|
|
|
Other
revenue
|
3,444
|
3,282
|
|
|
|
|
|
|
Revenue
|
21,853
|
19,609
|
11.4
|
(6.9)
|
0.2
|
4.7
|
|
|
|
|
|
|
|
|
|
|
|
Other growth metrics
|
|
|
|
|
|
|
|
|
Vodafone
Business - Service revenue
|
4,413
|
3,991
|
10.6
|
(4.7)
|
(0.1)
|
5.8
|
|
|
Germany
- Vodafone Business service revenue
|
1,251
|
1,170
|
6.9
|
(3.2)
|
–
|
3.7
|
|
|
UK -
Vodafone Business service revenue
|
1,070
|
1,058
|
1.1
|
(1.6)
|
0.3
|
(0.2)
|
|
|
Other
Europe - Vodafone Business service revenue
|
819
|
763
|
7.3
|
0.2
|
(0.5)
|
7.0
|
|
|
Türkiye
- Vodafone Business service revenue
|
251
|
208
|
20.7
|
2.0
|
17.3
|
40.0
|
|
|
Africa
- Vodacom Business service revenue
|
781
|
572
|
36.5
|
(21.3)
|
(6.1)
|
9.1
|
|
|
South
Africa - Financial services revenue
|
101
|
88
|
14.8
|
–
|
(8.9)
|
5.9
|
|
|
Vodacom
International - M-Pesa revenue
|
285
|
233
|
22.3
|
–
|
1.1
|
23.4
|
|
|
Safaricom
- M-Pesa revenue
|
669
|
592
|
13.0
|
–
|
0.7
|
13.7
|
|
|
Egypt -
Financial services revenue (Vodafone Cash)
|
113
|
67
|
68.7
|
–
|
5.6
|
74.3
|
|
Notes:
1.
Reported
service revenue growth in Türkiye of 14.8% includes 2.1pps in
relation to the application of IAS 29 ‘Financial Reporting in
Hyperinflationary Economies’. Growth in Türkiye
excluding the impact of this hyperinflationary adjustment was
12.7%.
2.
Comprises
corporate functions and shared operations.
Non-GAAP measures
|
Six months ended 30 September 2026
|
|
|
|
|
|
|
|
|
|
|
|
Reported
growth
|
M&A
and Other
|
Foreign
exchange
|
Organic
growth
|
|
|
|
|
H1 FY27
|
H1 FY26
|
||||
|
|
|
€m
|
€m
|
%
|
pps
|
pps
|
%
|
|
Adjusted EBITDAaL
|
|
|
|
|
|
|
|
|
Germany
|
2,139
|
2,191
|
(2.4)
|
(0.8)
|
–
|
(3.2)
|
|
|
UK
|
984
|
884
|
11.3
|
(5.6)
|
0.2
|
5.9
|
|
|
Other
Europe
|
772
|
835
|
(7.5)
|
3.5
|
(0.6)
|
(4.6)
|
|
|
Türkiye
|
531
|
485
|
9.5
|
8.0
|
15.2
|
32.7
|
|
|
Africa
|
2,058
|
1,347
|
52.8
|
(30.3)
|
(4.5)
|
18.0
|
|
|
Common
Functions1
|
(33)
|
(14)
|
|
|
|
|
|
|
Eliminations
|
–
|
–
|
|
|
|
|
|
|
Group
|
6,451
|
5,728
|
12.6
|
(6.6)
|
0.4
|
6.4
|
|
|
|
|
|
|
|
|
|
|
|
Percentage point change in Adjusted EBITDAaL margin
|
|
|
|
|
|
|
|
|
Germany
|
35.3%
|
36.5%
|
(1.2)
|
(0.1)
|
–
|
(1.3)
|
|
|
UK
|
20.3%
|
20.0%
|
0.3
|
0.9
|
–
|
1.2
|
|
|
Other
Europe
|
26.5%
|
29.8%
|
(3.3)
|
2.0
|
–
|
(1.3)
|
|
|
Türkiye
|
28.9%
|
30.3%
|
(1.4)
|
1.4
|
–
|
–
|
|
|
Africa
|
37.9%
|
34.1%
|
3.8
|
(2.5)
|
0.3
|
1.6
|
|
|
Group
|
29.5%
|
29.2%
|
0.3
|
0.2
|
–
|
0.5
|
|
Note:
1.
Comprises
corporate functions and shared operations.
Non-GAAP measures
|
Quarter ended 30 September 2026
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
growth
|
M&A
and Other
|
Foreign
exchange
|
Organic
growth
|
|
|
|
Q2 FY27
|
Q2 FY26
|
||||
|
|
|
€m
|
€m
|
%
|
pps
|
pps
|
%
|
|
Service revenue
|
|
|
|
|
|
|
|
|
Germany
|
2,743
|
2,737
|
0.2
|
(0.7)
|
–
|
(0.5)
|
|
|
|
Mobile
service revenue
|
1,289
|
1,315
|
(2.0)
|
0.1
|
–
|
(1.9)
|
|
|
Fixed
service revenue
|
1,454
|
1,422
|
2.3
|
(1.4)
|
–
|
0.9
|
|
UK
|
2,052
|
2,018
|
1.7
|
0.8
|
(1.3)
|
1.2
|
|
|
|
Mobile
service revenue
|
1,631
|
1,612
|
1.2
|
0.7
|
(1.3)
|
0.6
|
|
|
Fixed
service revenue
|
421
|
406
|
3.7
|
1.2
|
(1.4)
|
3.5
|
|
Other
Europe
|
1,289
|
1,231
|
4.7
|
(2.4)
|
(0.5)
|
1.8
|
|
|
Türkiye1
|
807
|
698
|
15.6
|
3.5
|
16.1
|
35.2
|
|
|
Africa
|
2,714
|
1,628
|
66.7
|
(46.2)
|
(6.5)
|
14.0
|
|
|
Common
Functions2
|
207
|
196
|
|
|
|
|
|
|
Eliminations
|
(29)
|
(39)
|
|
|
|
|
|
|
Total service revenue
|
9,783
|
8,469
|
15.5
|
(8.9)
|
(0.2)
|
6.4
|
|
|
Other
revenue
|
1,776
|
1,755
|
|
|
|
|
|
|
Revenue
|
11,559
|
10,224
|
13.1
|
(7.6)
|
(0.4)
|
5.1
|
|
|
|
|
|
|
|
|
|
|
|
Other growth metrics
|
|
|
|
|
|
|
|
|
Vodafone
Business - Service revenue
|
2,316
|
2,027
|
14.3
|
(7.0)
|
(0.7)
|
6.6
|
|
|
Germany
- Vodafone Business service revenue
|
628
|
589
|
6.6
|
(3.3)
|
–
|
3.3
|
|
|
UK -
Vodafone Business service revenue
|
543
|
540
|
0.6
|
0.9
|
(1.2)
|
0.3
|
|
|
Other
Europe - Vodafone Business service revenue
|
425
|
385
|
10.4
|
0.1
|
(0.6)
|
9.9
|
|
|
Türkiye
- Vodafone Business service revenue
|
130
|
109
|
19.3
|
3.6
|
16.7
|
39.6
|
|
|
Africa
- Vodacom Business service revenue
|
465
|
292
|
59.2
|
(41.4)
|
(8.5)
|
9.3
|
|
|
Group
Adjusted EBITDAaL
|
3,519
|
2,980
|
18.1
|
(11.6)
|
–
|
6.5
|
|
Notes:
1.
Reported
service revenue growth in Türkiye of 15.6% includes -1.4pps in
relation to the application of IAS 29 ‘Financial Reporting in
Hyperinflationary Economies’. Growth in Türkiye
excluding the impact of this hyperinflationary adjustment was
17.0%.
2.
Comprises
corporate functions and shared operations.
Non-GAAP measures
|
Quarter ended 30 June 2026
|
|
|
|
|
|
|
|
|
|
|
|
|
Reported
growth
|
M&A
and Other
|
Foreign
exchange
|
Organic
growth
|
|
|
|
Q1 FY27
|
Q1 FY26
|
||||
|
|
|
€m
|
€m
|
%
|
pps
|
pps
|
%
|
|
Service revenue
|
|
|
|
|
|
|
|
|
Germany
|
2,740
|
2,688
|
1.9
|
(0.7)
|
–
|
1.2
|
|
|
|
Mobile
service revenue
|
1,279
|
1,264
|
1.2
|
–
|
–
|
1.2
|
|
|
Fixed
service revenue
|
1,461
|
1,424
|
2.6
|
(1.3)
|
–
|
1.3
|
|
UK
|
1,988
|
1,646
|
20.8
|
(22.5)
|
2.3
|
0.6
|
|
|
|
Mobile
service revenue
|
1,581
|
1,250
|
26.5
|
(29.6)
|
2.4
|
(0.7)
|
|
|
Fixed
service revenue
|
407
|
396
|
2.8
|
1.3
|
2.0
|
6.1
|
|
Other
Europe
|
1,231
|
1,184
|
4.0
|
(2.4)
|
(0.6)
|
1.0
|
|
|
Türkiye1
|
716
|
629
|
13.8
|
0.2
|
16.2
|
30.2
|
|
|
Africa
|
1,790
|
1,555
|
15.1
|
–
|
(2.5)
|
12.6
|
|
|
Common
Functions2
|
197
|
192
|
|
|
|
|
|
|
Eliminations
|
(36)
|
(36)
|
|
|
|
|
|
|
Total service revenue
|
8,626
|
7,858
|
9.8
|
(5.5)
|
0.9
|
5.2
|
|
|
Other
revenue
|
1,668
|
1,527
|
|
|
|
|
|
|
Revenue
|
10,294
|
9,385
|
9.7
|
(6.1)
|
0.7
|
4.3
|
|
|
|
|
|
|
|
|
|
|
|
Other growth metrics
|
|
|
|
|
|
|
|
|
Vodafone
Business - Service revenue
|
2,097
|
1,964
|
6.8
|
(2.3)
|
0.5
|
5.0
|
|
|
Germany
- Vodafone Business service revenue
|
623
|
581
|
7.2
|
(3.2)
|
–
|
4.0
|
|
|
UK -
Vodafone Business service revenue
|
527
|
518
|
1.7
|
(4.3)
|
1.9
|
(0.7)
|
|
|
Other
Europe - Vodafone Business service revenue
|
394
|
378
|
4.2
|
0.1
|
(0.3)
|
4.0
|
|
|
Türkiye
- Vodafone Business service revenue
|
121
|
99
|
22.2
|
0.3
|
17.9
|
40.4
|
|
|
Africa
- Vodacom Business service revenue
|
316
|
280
|
12.9
|
–
|
(4.2)
|
8.7
|
|
|
Group
Adjusted EBITDAaL
|
2,932
|
2,748
|
6.7
|
(1.2)
|
0.7
|
6.2
|
|
Notes:
1.
Reported
service revenue growth in Türkiye of 13.8% includes 5.5pps in
relation to the application of IAS 29 ‘Financial Reporting in
Hyperinflationary Economies’. Growth in Türkiye
excluding the impact of this hyperinflationary adjustment was
8.3%.
2.
Comprises
corporate functions and shared operations.
Non-GAAP measures
Other metrics
|
Non-GAAP
measure
|
Purpose
|
Definition
|
|
Adjusted
profit attributable to owners of the parent
|
This
metric is used in the calculation of Adjusted basic earnings per
share.
|
Adjusted
profit attributable to owners of the parent excludes restructuring
costs arising from discrete restructuring plans, amortisation of
customer bases and brand intangible assets, impairment
losses/reversals, other income and expense, mark-to-market and
foreign exchange movements and fair value movements on Other
investments through profit and loss, together with related tax
effects.
|
|
Adjusted
basic earnings per share
|
This
performance measure is used in discussions with the investor
community.
|
Adjusted
basic earnings per share is Adjusted profit attributable to owners
of the parent divided by the weighted average number of shares
outstanding. This is the same denominator used when calculating
basic earnings per share.
|
Adjusted EBITDAaL and Adjusted profit attributable to owners of the
parent
The table below reconciles Adjusted EBITDAaL and Adjusted profit
attributable to owners of the parent to their closest equivalent
GAAP measures, being Operating profit and Profit attributable to
owners of the parent, respectively.
|
|
H1 FY27
|
H1 FY26
|
||||
|
|
Reported
|
Adjustments
|
Adjusted
|
Reported
|
Adjustments
|
Adjusted
|
|
|
€m
|
€m
|
€m
|
€m
|
€m
|
€m
|
|
Adjusted EBITDAaL
|
6,451
|
–
|
6,451
|
5,728
|
–
|
5,728
|
|
Restructuring
costs
|
(317)
|
317
|
–
|
(186)
|
186
|
–
|
|
Interest
on lease liabilities
|
340
|
–
|
340
|
292
|
–
|
292
|
|
(Loss)/gain
on disposal of property, plant & equipment and intangible
assets
|
(9)
|
–
|
(9)
|
155
|
–
|
155
|
|
Depreciation
and amortisation on owned assets1
|
(4,492)
|
386
|
(4,106)
|
(4,095)
|
336
|
(3,759)
|
|
Share
of results of equity accounted associates and joint
ventures2
|
25
|
75
|
100
|
182
|
(37)
|
145
|
|
Impairment
charge
|
(4,850)
|
4,850
|
–
|
–
|
–
|
–
|
|
Other
income
|
3,369
|
(3,369)
|
–
|
86
|
(86)
|
–
|
|
Operating profit
|
517
|
2,259
|
2,776
|
2,162
|
399
|
2,561
|
|
Investment
and other income
|
288
|
–
|
288
|
1,085
|
–
|
1,085
|
|
Financing
costs3
|
(1,178)
|
21
|
(1,157)
|
(1,134)
|
76
|
(1,058)
|
|
(Loss)/profit before taxation
|
(373)
|
2,280
|
1,907
|
2,113
|
475
|
2,588
|
|
Income
tax expense4
|
(3,224)
|
2,803
|
(421)
|
(1,061)
|
392
|
(669)
|
|
(Loss)/profit for the financial period
|
(3,597)
|
5,083
|
1,486
|
1,052
|
867
|
1,919
|
|
|
|
|
|
|
|
|
|
(Loss)/profit
attributable to:
|
|
|
|
|
|
|
|
-
Owners of the parent
|
(4,789)
|
5,131
|
342
|
829
|
867
|
1,696
|
|
-
Non-controlling interests
|
1,192
|
(48)
|
1,144
|
223
|
–
|
223
|
|
(Loss)/profit for the financial period
|
(3,597)
|
5,083
|
1,486
|
1,052
|
867
|
1,919
|
Notes:
1.
Depreciation
and amortisation on owned assets excludes depreciation on leased
assets and loss on disposal of leased assets included within
Adjusted EBITDAaL. See page 62 for an analysis of depreciation and
amortisation. The adjustment of €386 million (H1 FY26:
€336 million) relates to amortisation of customer bases and
brand intangible assets.
2.
See page 61
for a breakdown of the adjustments to Share of results of equity
accounted associates and joint ventures to derive Adjusted share of
results of equity accounted associates and joint
ventures.
3.
See ‘Net
financing costs’ on page 15 for further
analysis.
4.
See
‘Adjusted tax metrics’ on page 61 for further
analysis.
Non-GAAP measures
Adjusted basic earnings per share
The table below reconciles Adjusted basic earnings per share to the
closest equivalent GAAP measure, Basic earnings per
share.
|
|
H1 FY27
|
H1 FY26
|
|
|
€m
|
€m
|
|
(Loss)/profit
attributable to owners of the parent
|
(4,789)
|
829
|
|
Adjusted
profit attributable to owners of the parent
|
342
|
1,696
|
|
|
|
|
|
|
Million
|
Million
|
|
Weighted
average number of shares outstanding - Basic
|
23,078
|
24,509
|
|
|
|
|
|
|
eurocents
|
eurocents
|
|
Basic (loss)/earnings per share
|
(20.75)c
|
3.38c
|
|
Adjusted basic earnings per share
|
1.48c
|
6.92c
|
Cash flow, funding and capital allocation metrics
Cash flow and funding
|
Non-GAAP measure
|
Purpose
|
Definition
|
|
Free
cash flow
|
Internal
performance reporting.
External
metric used by investor community.
Assists
comparability with other companies, although our metric may not be
directly comparable to similarly titled measures used by other
companies.
|
Free
cash flow is Adjusted EBITDAaL after cash flows in relation to
capital additions, working capital movements including in respect
of capital additions, disposal of property, plant and equipment and
intangible assets, integration capital additions and restructuring
costs, together with related working capital, licences and
spectrum, interest received and paid (excluding interest on bank
borrowings secured against Indian assets), taxation, dividends
received from associates and joint ventures, dividends paid to
non-controlling shareholders in subsidiaries, payments in respect
of lease liabilities and other.
|
|
Adjusted
free cash flow
|
Internal
performance reporting.
External
metric used by investor community.
Setting
director and management remuneration.
Key
external metric used to evaluate liquidity and the cash generated
by our operations.
|
Adjusted
free cash flow is Free cash flow before licences and spectrum,
restructuring costs arising from discrete restructuring plans,
integration capital additions and working capital related
items.
|
|
Gross
debt
|
Prominent
metric used by debt rating agencies and the investor
community.
|
Non-current
borrowings and current borrowings, excluding lease liabilities,
collateral liabilities and borrowings specifically secured against
Indian assets.
|
|
Net
debt
|
Prominent
metric used by debt rating agencies and the investor
community.
|
Gross
debt less cash and cash equivalents, short-term investments,
non-current investments in sovereign securities, derivative and
other financial instruments excluding mark-to-market adjustments
and net collateral assets.
|
Non-GAAP measures
Cash flow and funding (continued)
The table below reconciles Inflow from operating activities and
Free cash flow.
|
|
H1 FY27
|
H1 FY26
|
|
|
€m
|
€m
|
|
Inflow from operating activities
|
6,354
|
5,092
|
|
Net tax
paid
|
706
|
508
|
|
Cash generated by operations
|
7,060
|
5,600
|
|
Capital
additions
|
(3,320)
|
(2,800)
|
|
Working
capital movement in respect of capital additions
|
(686)
|
(639)
|
|
Disposal
of property, plant and equipment and intangible assets
|
17
|
14
|
|
Integration
capital additions
|
(64)
|
(21)
|
|
Working
capital movement in respect of integration capital
additions
|
(71)
|
1
|
|
Licences
and spectrum
|
(21)
|
(45)
|
|
Interest
received and paid1
|
(734)
|
(746)
|
|
Taxation
|
(706)
|
(522)
|
|
Dividends
received from associates and joint ventures
|
125
|
235
|
|
Dividends
paid to non-controlling shareholders in subsidiaries
|
(398)
|
(141)
|
|
Payments
in respect of lease liabilities
|
(1,944)
|
(1,700)
|
|
Other
|
(103)
|
(7)
|
|
Free cash flow
|
(845)
|
(771)
|
Note:
1.
Includes
interest on lease liabilities of €341 million (H1 FY26:
€291 million), excluding discontinued operations.
The table below reconciles Borrowings, Gross debt and Net
debt.
|
|
|
H1 FY27
|
Year-end FY26
|
|
|
|
€m
|
€m
|
|
Borrowings
|
(56,815)
|
(52,636)
|
|
|
Lease
liabilities
|
12,777
|
12,388
|
|
|
Collateral
liabilities
|
1,341
|
1,644
|
|
|
Gross debt
|
(42,697)
|
(38,604)
|
|
|
Collateral
liabilities
|
(1,341)
|
(1,644)
|
|
|
Cash
and cash equivalents
|
5,133
|
8,982
|
|
|
Non-current
investments in sovereign securities
|
407
|
915
|
|
|
Short-term
investments
|
3,257
|
3,431
|
|
|
Collateral
assets
|
1,279
|
1,169
|
|
|
Derivative
and other financial instruments
|
642
|
1,163
|
|
|
Less
mark-to-market gains deferred in hedge reserves
|
(153)
|
(823)
|
|
|
Net debt
|
(33,473)
|
(25,411)
|
|
Non-GAAP measures
Return on Capital Employed
|
Non-GAAP measure
|
Purpose
|
Definition
|
|
Return
on Capital Employed (‘ROCE’)
|
ROCE is
a metric used by the investor community and reflects how
efficiently we are generating profit with the capital we
deploy.
|
We
calculate ROCE by dividing Operating profit by the average of
capital employed as reported in the consolidated statement of
financial position. Capital employed includes borrowings, cash and
cash equivalents, derivative and other financial instruments
included in trade and other receivables/payables, short-term
investments, non-current investments in sovereign securities,
collateral assets, financial liabilities under put option
arrangements and equity.
|
|
Pre-tax
ROCE (controlled)
Post-tax
ROCE (controlled and associates/joint ventures)
|
As
above
|
We
calculate pre-tax ROCE (controlled) by using Operating profit
excluding interest on lease liabilities, restructuring costs
arising from discrete restructuring plans, impairment
losses/reversals, other income and expense, the impact of
hyperinflationary adjustments and the share of results of equity
accounted associates and joint ventures. On a post-tax basis, the
measure includes our Adjusted share of results from associates and
joint ventures and a notional tax charge. Capital is equivalent to
net operating assets and is based on the average of month end
capital employed balances during the period of: property, plant and
equipment (including leased assets and lease liabilities),
intangible assets (including goodwill), operating working capital
(including held for sale assets and excluding derivative balances)
and provisions, excluding the impact of hyperinflationary
adjustments. Other assets that do not directly contribute to
returns are excluded from this measure and include other
investments, current and deferred tax balances and post employment
benefits. On a post-tax basis, ROCE also includes our investments
in associates and joint ventures.
|
ROCE using GAAP measures
The table below presents the calculation of ROCE using GAAP
measures as reported in the consolidated income statement and
consolidated statement of financial position.
For the purpose of the half-year ROCE calculation, the returns are
based on the 12 months ended 30 September and the denominator is
based on the average of 12 month end capital employed balances from
the opening position, and ending at 30 September 2025 and 30
September 2026 of the respective years.
|
|
H1 FY27
|
H1 FY26
|
|
|
€m
|
€m
|
|
Operating profit/(loss)1
|
1,199
|
(631)
|
|
|
|
|
|
Borrowings
|
56,815
|
51,455
|
|
Cash
and cash equivalents
|
(5,133)
|
(7,087)
|
|
Derivative
and other financial instruments included in trade and other
receivables
|
(2,948)
|
(3,005)
|
|
Derivative
and other financial instruments included in trade and other
payables
|
2,306
|
2,451
|
|
Non-current
investments in sovereign securities
|
(407)
|
(904)
|
|
Short-term
investments
|
(3,257)
|
(3,773)
|
|
Collateral
assets
|
(1,279)
|
(1,495)
|
|
Financial
liabilities under put option arrangements
|
299
|
102
|
|
Equity
|
46,783
|
56,609
|
|
Capital employed at end of the period
|
93,179
|
94,353
|
|
|
|
|
|
Average capital employed for the period
|
93,766
|
98,432
|
|
|
|
|
|
ROCE using GAAP measures
|
1.3%
|
(0.6%)
|
Note:
1.
Operating
profit/(loss) includes Other income, which includes merger and
acquisition activity that is non-recurring in
nature.
Non-GAAP measures
Return on Capital Employed (‘ROCE’) : Non-GAAP
basis
The table below presents the calculation of ROCE using non-GAAP
measures and reconciliations to the closest equivalent GAAP
measure.
For
the purpose of the half-year ROCE calculation, the returns are
based on the 12 months ended 30 September and the denominator is
based on the average of 12 month end capital employed balances from
the opening position, and ending at 30 September 2025 and at 30
September 2026 of the respective years.
|
|
H1 FY27
|
H1 FY26
|
|
|
€m
|
€m
|
|
Operating profit/(loss)
|
1,199
|
(631)
|
|
Interest
on lease liabilities
|
(663)
|
(560)
|
|
Restructuring
costs
|
501
|
292
|
|
Other
income
|
(3,195)
|
(118)
|
|
Share
of results of equity accounted associates and joint
ventures
|
539
|
(99)
|
|
Impairment
charge
|
4,850
|
4,515
|
|
Other
adjustments1
|
459
|
431
|
|
Adjusted operating profit for calculating pre-tax ROCE
(controlled)
|
3,690
|
3,830
|
|
Adjusted
share of results of equity accounted associates and joint ventures
used in post-tax ROCE2
|
(9)
|
88
|
|
Notional
tax at Adjusted effective tax rate3
|
(926)
|
(1,037)
|
|
Adjusted operating profit for calculating post-tax ROCE (controlled
and associates/joint ventures)
|
2,755
|
2,881
|
|
|
|
|
|
Capital employed for calculating ROCE on a GAAP basis
|
93,179
|
94,353
|
|
Adjustments
to exclude:
|
|
|
|
-
Leases
|
(12,777)
|
(12,335)
|
|
-
Deferred tax assets
|
(15,431)
|
(18,513)
|
|
-
Deferred tax liabilities
|
1,620
|
796
|
|
-
Taxation recoverable
|
(137)
|
(170)
|
|
-
Taxation liabilities
|
525
|
594
|
|
- Other
investments
|
(1,514)
|
(2,935)
|
|
-
Associates and joint ventures
|
(5,890)
|
(6,699)
|
|
-
Pension assets and liabilities
|
(184)
|
(65)
|
|
- Other
adjustments1
|
(1,276)
|
(1,123)
|
|
Adjusted capital employed for calculating pre-tax ROCE
(controlled)
|
58,115
|
53,903
|
|
Associates
and joint ventures1
|
5,890
|
6,699
|
|
Adjusted capital employed for calculating post-tax ROCE (controlled
and associates/joint ventures)
|
64,005
|
60,602
|
|
|
|
|
|
Average capital employed for calculating pre-tax ROCE
(controlled)
|
55,313
|
52,899
|
|
Average capital employed for calculating post-tax ROCE (controlled
and associates/joint ventures)
|
61,875
|
59,700
|
|
|
|
|
|
Pre-tax ROCE (controlled)
|
6.7%
|
7.2%
|
|
Post-tax ROCE (controlled and associates/joint
ventures)
|
4.5%
|
4.8%
|
Notes:
1.
Comprises
adjustments to exclude hyperinflationary accounting in
Türkiye.
2.
Adjusted share
of results of equity accounted associates and joint ventures used
in post-tax ROCE is a non-GAAP measure and excludes restructuring
costs and other income.
3.
Includes
tax at the Adjusted effective tax rate of 23.3% (H1 FY26:
27.4%).
Non-GAAP measures
Financing and Taxation metrics
|
Non-GAAP measure
|
Purpose
|
Definition
|
|
Adjusted
net financing costs
|
This
metric is used by both management and the investor
community.
This
metric is used in the calculation of Adjusted basic earnings per
share.
|
Adjusted
net financing costs exclude mark-to-market and foreign exchange
gains/losses, together with fair value movements on Other
investments through profit and loss.
|
|
Adjusted
profit before taxation
|
This
metric is used in the calculation of the Adjusted effective tax
rate (see below).
|
Adjusted
profit before taxation excludes the tax effects of items excluded
from Adjusted basic earnings per share, including: impairment
losses/reversals, amortisation of customer bases and brand
intangible assets, restructuring costs arising from discrete
restructuring plans, other income and expense, mark-to-market and
foreign exchange movements and fair value movements on Other
investments through profit and loss.
|
|
Adjusted
income tax expense
|
This
metric is used in the calculation of the Adjusted effective tax
rate (see below).
|
Adjusted
income tax expense excludes the tax effects of items excluded from
Adjusted basic earnings per share, including: impairment
losses/reversals, amortisation of customer bases and brand
intangible assets, restructuring costs arising from discrete
restructuring plans, other income and expense, mark-to-market and
foreign exchange movements and fair value movements on Other
investments through profit and loss. It also excludes deferred tax
movements relating to tax losses in Germany, Luxembourg and the UK
as well as other significant one-off items.
|
|
Adjusted
effective tax rate
|
This
metric is used by both management and the investor
community.
|
Adjusted
income tax expense (see above) divided by Adjusted profit before
taxation (see above).
|
|
Adjusted
share of results of equity accounted associates and joint
ventures
|
This
metric is used in the calculation of Adjusted effective tax
rate.
|
Share
of results of equity accounted associates and joint ventures
excluding restructuring costs, amortisation of acquired customer
base and brand intangible assets and other income and
expense.
|
|
Adjusted
share of results of equity accounted associates and joint ventures
used in post-tax ROCE
|
This
metric is used in the calculation of post-tax ROCE (controlled and
associates/joint ventures).
|
Share
of results of equity accounted associates and joint ventures
excluding restructuring costs and other income and
expense.
|
Non-GAAP measures
Adjusted tax metrics
The table below reconciles Profit before taxation and Income tax
expense to Adjusted profit before taxation, Adjusted income tax
expense and Adjusted effective tax rate.
|
|
H1 FY27
|
H1 FY26
|
|
|
|
€m
|
€m
|
|
|
(Loss)/profit before taxation
|
(373)
|
2,113
|
|
|
Adjustments
to derive Adjusted profit before tax
|
2,280
|
475
|
|
|
Adjusted profit before taxation
|
1,907
|
2,588
|
|
|
Adjusted
share of results of equity accounted associates and joint
ventures
|
(100)
|
(145)
|
|
|
Adjusted profit before tax for calculating Adjusted effective tax
rate
|
1,807
|
2,443
|
|
|
|
|
|
|
|
Income tax expense
|
(3,224)
|
(1,061)
|
|
|
Tax on
adjustments to derive Adjusted profit before tax
|
(149)
|
(148)
|
|
|
Adjustments:
|
|
|
|
|
-
Deferred tax on rate change in Germany
|
66
|
269
|
|
|
-
Deferred tax charge for utilisation of recognised tax losses in
Luxembourg
|
165
|
172
|
|
|
-
UK corporate interest restriction
|
–
|
3
|
|
|
-
Tax relating to inflation-related adjustments in Türkiye
|
117
|
96
|
|
|
-
UK deferred tax asset derecognition and current period
non-recognition
|
2,390
|
–
|
|
|
-
Germany deferred tax asset derecognition and current period
non-recognition
|
214
|
–
|
|
|
Adjusted income tax expense for calculating Adjusted tax
rate
|
(421)
|
(669)
|
|
|
Adjusted effective tax rate
|
23.3%
|
27.4%
|
|
Adjusted share of results of equity accounted associates and joint
ventures
The table below reconciles Adjusted share of results of equity
accounted associates and joint ventures to the closest GAAP
equivalent, Share of results of equity accounted associates and
joint ventures.
|
|
H1 FY27
|
H1 FY26
|
|
|
€m
|
€m
|
|
Share of results of equity accounted associates and joint
ventures
|
25
|
182
|
|
Restructuring
costs, net of tax
|
1
|
15
|
|
Other
income, net of tax
|
10
|
(42)
|
|
Adjusted share of results of equity accounted associates and joint
ventures used in post-tax ROCE
|
36
|
155
|
|
Amortisation
of acquired customer base and brand intangible assets, net of
tax
|
64
|
(10)
|
|
Adjusted share of results of equity accounted associates and joint
ventures
|
100
|
145
|
|
Additional information
|
|
|
|
|
Analysis of depreciation and amortisation
The table below presents an analysis of the different components of
depreciation and amortisation discussed in the document, reconciled
to the GAAP amounts in the consolidated income
statement.
|
|
|
H1 FY27
|
H1 FY26
|
|
|
€m
|
€m
|
|
|
Depreciation
on leased assets - included in Adjusted EBITDAaL
|
1,960
|
1,735
|
|
|
Depreciation
on leased assets - included in Restructuring costs
|
86
|
130
|
|
|
Depreciation on leased assets
|
2,046
|
1,865
|
|
|
|
|
|
|
|
Depreciation
on owned assets
|
2,366
|
2,110
|
|
|
Amortisation
of owned intangible assets
|
2,133
|
1,985
|
|
|
Depreciation and amortisation on owned assets
|
4,499
|
4,095
|
|
|
|
|
|
|
|
Total depreciation and amortisation on owned and leased
assets
|
6,545
|
5,960
|
|
|
|
|
|
|
|
Loss/(gain)
on disposal of owned fixed assets
|
9
|
(155)
|
|
|
(Gain)/loss
on disposal of leased assets
|
(8)
|
1
|
|
|
Depreciation and amortisation - as recognised in the consolidated
income statement
|
6,546
|
5,806
|
|
Analysis of tangible and intangible additions
The table below presents an analysis of the different components of
tangible and intangible additions discussed in the
document.
|
|
|
H1 FY27
|
H1 FY26
|
|
|
€m
|
€m
|
|
|
Capital
additions
|
3,320
|
2,800
|
|
|
Integration
related capital additions
|
64
|
21
|
|
|
Licence
and spectrum additions
|
254
|
261
|
|
|
Additions
to customer bases
|
–
|
1
|
|
|
Additions
|
3,638
|
3,083
|
|
|
|
|
|
|
|
Intangible
asset additions
|
1,179
|
1,103
|
|
|
Property,
plant and equipment owned additions
|
2,459
|
1,980
|
|
|
Total additions
|
3,638
|
3,083
|
|
|
Definitions
|
|
|
|
|
Key terms are defined below. See page 49 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.
|
|
Capital
additions
|
Comprises
the purchase of property, plant and equipment and intangible
assets, other than licence and spectrum payments and integration
capital expenditure.
|
|
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.
|
|
Financial
services revenue
|
Financial
services revenue includes fees generated from the provision of
advanced airtime, overdraft, financing and lending facilities, as
well as merchant payments and the sale of insurance products (e.g.
device insurance, life insurance and funeral cover).
|
|
Fixed
service revenue
|
Service
revenue (see below) relating to the provision of fixed line and
carrier services.
|
|
FTTH
|
Fibre
to the home.
|
|
GAAP
|
Generally
Accepted Accounting Principles.
|
|
IFRS
|
International
Financial Reporting Standards.
|
|
Incoming
revenue
|
Comprises
revenue from termination rates for voice and messaging to Vodafone
customers.
|
|
Indian
assets
|
Comprises
the Group’s investments in Indus Towers Limited and Vodafone
Idea Limited.
|
|
Integration
capital additions
|
Capital
additions incurred in relation to significant changes in the
operating model, such as the integration of recently acquired
subsidiaries.
|
|
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.
|
|
MDU
|
Multi
Dwelling Units.
|
|
Mobile
service revenue
|
Service
revenue (see below) relating to the provision of mobile
services.
|
|
NPS
|
Net
Promoter Score.
|
|
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.
|
|
Notes
|
|
|
|
|
1.
References to
Vodafone Group are to Vodafone Group Plc and its subsidiaries
unless otherwise stated. Vodafone, the Vodafone Speech Mark
Devices, Vodacom and everyone.connected are trademarks owned by
Vodafone. Other product and company names mentioned herein may be
the trademarks of their respective owners.
2.
All growth
rates reflect a comparison to the six months ended 30 September
2025 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
“FY27” are to the financial year ending 31 March 2027.
References to “last year”, “last financial
year” or “FY26” are to the financial year ended
31 March 2026. References to “H1 FY27” are to the six
month period ended 30 September 2026. References to “H1
FY26” are to the six month period ended 30 September
2025.
4.
Vodacom refers
to the Group’s interest in Vodacom Group Limited 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 2027; the integration of Skaylink, Telekom
Romania, VodafoneThree and Safaricom; general expectations for the
Group’s future performance; expectations for the
Group’s dividend policy; 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’, ‘plans’,
‘further’, ‘ongoing’,
‘progress’, ‘targets’ 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 combination of
Vodafone’s UK business with Three UK, the mobile network
sharing agreement with Virgin Media O2 and the Group’s
strategic partnerships with Microsoft and Google; 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
disposal; 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.
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 2026. The Annual Report can be found on the Vodafone
Group’s website (vodafone.com/investors).
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 2026
-End-
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorised.
|
|
VODAFONE
GROUP
|
|
|
PUBLIC
LIMITED COMPANY
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
Date:
November 10, 2026
|
By: /s/ M D B
|
|
|
Name: Maaike de Bie
|
|
|
Title: Group General Counsel and Company Secretary
|