- Vodafone's first-quarter results were positive, with adjusted EBITDAaL up 6.2% year on year and management guiding toward the higher end of its €13.0 billion-€13.3 billion adjusted EBITDAaL guidance.
- Full-year guidance has been updated to include nine months of Safaricom following completion of the transaction.
- Vodafone now expects adjusted cash profit of €13.0-13.3bn and free cash flow of €2.6-2.9bn, with performance expected at the upper end of both ranges.
- Shares rose 4% to GBX 119 following the results and look slightly undervalued.
- First-quarter revenue rose 9.7% to €10.3bn, with growth boosted by the addition of Three UK revenue.
- Organic Service revenue growth was 5.2% to €8.6bn, with all segments contributing positively.
- Adjusted cash profit (EBITDAaL) rose 6.2% organically to €2.9bn, with margins up 0.6 percentage points to 28.5%.
Vodafone's first-quarter results for the 2027 financial year showed a 6.2% year-on-year increase in adjusted EBITDAaL, reaching €2.9 billion. The company has updated its full-year guidance to €13.0-13.3 billion in adjusted cash profit, reflecting strong performance across all segments.123
First-quarter revenue surged 9.7% to €10.3 billion, driven by the addition of Three UK revenue and 5.2% organic service revenue growth to €8.6 billion. The adjusted cash profit margin improved by 0.6 percentage points to 28.5%, indicating robust operational efficiency.56
Following the announcement, Vodafone shares rose 4% to GBX 119, with analysts noting the stock appears slightly undervalued. The company is also benefiting from a €1 billion net cost-reduction program initiated in May, which is expected to enhance profitability further.
Vodafone's management anticipates performance at the upper end of its guidance ranges, with free cash flow projected between €2.6-2.9 billion. This optimistic outlook is supported by broad-based growth across its operations, positioning Vodafone favorably in the competitive telecommunications market.
“Vodafone's first-quarter revenue rose 9.7% to €10.3bn, driven by the addition of Three UK revenue. The company now expects performance at the upper end of its guidance, with adjusted cash profit projected between €13.0-13.3bn and free cash flow between €2.6-2.9bn.”
Hargreaves Lansdown
