Vodafone has raised its full-year earnings forecast after cutting 3,000 jobs across Europe.
The telecommunications group recorded savings of €200m (£167m) in its first-half results while it has upgraded its guidance for profit and cash flow for the 2027 financial year.
The company now expects adjusted EBITDAaL (Earnings Before Interest, Taxes, Depreciation, Amortization, and After Leases) of €13.2-13.4 billion and adjusted free cash flow of €2.8-3bn.
CEO Margherita Della Valle said: “We have made a strong start to Vodafone’s new growth chapter, with organic service revenue increasing by 5.8%.”
Total revenue increased 11.4% to €21.9bn in H127, against €19.6bn in H126, which Vodafone attributed to strong service revenue growth and the consolidation of Safaricom, VodafoneThree and Telekom Romania.
That was partially offset by adverse foreign exchange movements.
Despite the growth, Vodafone reported a loss of €3.6 billion for the period, against a profit of €1.1bn in the same period a year earlier.
The company said this was due to non-cash accounting charges, including an impairment in Germany that was primarily driven by adverse changes in interest rates.
It also took a write-down of deferred tax assets in the UK following the buyout of CK Hutchison Group Telecom Holding Limited from VodafoneThree.
In the UK, organic service revenue grew 0.9%, driven by strong fixed line growth and higher mobile wholesale revenue.
