Vodafone Group Shares Fall on Lower German Service Revenue

By Najat Kantouar

Vodafone Group shares fell after the company's German business revenue declined on lower service revenue and equipment sales, despite delivering higher group revenue for its fiscal first quarter.

At 0807 GMT, shares were down 1.80 pence, or 2.6%, at 68.66 pence. Year to date, shares have risen 0.15%.

The U.K. telecommunication company's German segment--the company's largest market representing 37% of group service revenue--reported a 1.5% decline in service revenue to 2.78 billion euros ($3.01 billion) from EUR2.82 billion, due to the cumulative effect of broadband and TV customer losses and lower regulated rates for terminating mobile calls.

Total revenue for Germany fell to EUR3.095 billion from EUR3.15 billion for the same period a year earlier. However, group revenue rose 2.8% to EUR9.04 billion from EUR8.79 billion.

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

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 at least EUR2.4 billion.

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

(END) Dow Jones Newswires

July 25, 2024 04:33 ET (08:33 GMT)

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