Vodafone Group Backed Its Full-Year Expectations After Higher Revenue Growth

By Najat Kantouar

Vodafone Group backed its full-year expectations after delivering higher revenue for the first quarter, boosted by strong growth in Africa and Turkey.

The U.K. telecommunication company said Thursday that for the quarter ended June 30, group revenue rose 2.8% to 9.04 billion euros ($9.80 billion), from EUR8.79 billion for the same period a year earlier.

The group's service revenue--a closely watched metric in the telecom sector--increased 5.4% to EUR7.465 billion from EUR7.235 billion.

Within this, Africa service revenue grew 1.6%, U.K. rose 2%, while other Europe service revenue grew 1.6% to EUR1.18 billion. Germany service revenue declined 1.5% to EUR2.78 billion, due to the cumulative impact of broadband and TV customer losses and lower regulated rates for terminating mobile calls. In Turkey, service revenue rose 54.7% to EUR515 million.

At its Vodafone business segment, service revenue grew by 2.6%, with project phasing in Germany and other Europe affecting trends, which are expected to normalize throughout the fiscal year, the company said.

Vodafone reiterated its fiscal 2025 guidance, expecting adjusted earnings before interest, taxes, depreciation and amortization after leases to be around EUR11 billion and adjusted free cash flow of least EUR2.4 billion.

Write to Najat Kantouar at najat.kantouar@wsj.com

(END) Dow Jones Newswires

July 25, 2024 02:48 ET (06:48 GMT)

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