Vodafone Group revealed plans to cut more than €1 billion from costs by the end of its 2026 financial year (31 March 2026) through changes to its structure and accelerated adoption of digital operations, as it attempts to mitigate macroeconomic issues.
In the company’s fiscal H1 2023 financial statement (covering the period to end-September), CEO Nick Read explained it would seek to further streamline its operations and accelerate digitalisation to achieve savings.
The plan adds to cost-cutting efforts already underway at the group.
Its latest bid to snip overheads comes alongside contractual price rises and reduced discounts in several markets. The measures are an attempt to “mitigate the economic backdrop of high energy costs and rising inflation,” Read added.
Despite price rises in its markets, the executive also noted Vodafone continued with policies designed to support its most vulnerable customers.
In terms of H1 performance, Vodafone recorded year-on-year service revenue declines in Germany, Spain and Italy.
The latter two drops of 2.8 per cent and 4.5 per cent, respectively were blamed on high levels of competition.
In its largest market of Germany, which contributes 30 per cent of group revenue, figures were hit by falls from its fixed and TV businesses.
The trio of declines were offset by increases in the UK, the rest of Europe and earnings from Africa subsidiary Vodacom Group, which booked a 9.4 per cent rise in revenue to €3.2 billion, boosted by favourable exchange rates.
Vodacom also reported increases in data use and contractual price increases in South Africa, alongside higher transaction volumes in its mobile money services across other markets.
Vodafone’s fiscal H1 revenue was €22.9 billion, up 2 per cent on higher equipment sales and an increase in overall service revenue.
Profit was broadly flat at €1.2 billion.