Vodafone Group CEO Margherita Della Valle (pictured) was buoyant about its recent financial performance despite a dip in revenue, insisting initial progress was being made with a wider strategic plan resulting in improved trends.
Della Valle stated in a fiscal H1 2024 (covering the period to end-September 2023) earnings announcement the operator had delivered revenue increases “in nearly all of our markets”, including a return to growth in Germany in the second quarter.
She also pointed to wider strategic moves made throughout the first half of the year, including a proposed tie-up with 3 UK to strengthen its position in the country and exiting “the challenging Spanish market in order to right-size our portfolio for growth”.
“Vodafone’s transformation is progressing. Our focus on customers and simplifying our business is beginning to bear fruit, although much more needs to be done,” she said.
Despite the optimism, H1 2024 revenue dipped 4.3 per cent year-on-year to just shy of €22 billion, with the decline pinned on adverse foreign exchange movements along with disposals of Vantage Towers and its businesses in Hungary and Ghana in the prior financial year. Operating profit was also hit by the disposals and foreign exchange movements, declining 44 per cent to €1.7 billion.
Group service revenue did, however, increase by 4.2 per cent to €18.6 billion. This was helped by a small return to growth in Germany, modest improvements in Spain and Italy and almost a 5 per cent rise from its Vodafone Business segment.
Vodafone reiterated its full-year guidance for adjusted EBITDA-AL of €13.3 billion and free cash flow of €3.3 billion.