Telecommunications giant Vodafone has revealed its FY25 results, with the company £346m in the red for the year after making a profit of £3.1bn in FY24.
The London-based firm has attributed the huge £3.4bn swing to its struggling divisions in Germany and Romania, with non-cash impairment charges (a write-down of an asset’s value) totalling £3.8bn.
Vodafone’s turnover slumped by 5 per cent in Germany, which could be down to new laws.
These laws in Germany allow for tenants in apartment blocks to choose their own television and broadband provider.
Despite the company now operating at a loss, its revenue still increased by 2 per cent to a whopping £31.5bn, with its UK organic service revenue increasing by 1.9 per cent.
The business also expects its merger with Three UK to be completed in the first half of 2025 and has confirmed the sale of both Vodafone Spain and Vodafone Italy.
It has, however, admitted that it ‘still has much more to do to reach the full potential of our businesses’ in a statement to the London Stock Exchange.
“Since I set out my plans to transform Vodafone two years ago, Vodafone has changed,” said Margherita Della Valle, Vodafone group chief executive.
“We have reshaped Europe, we are seeing the positive impact of our drive for customer satisfaction in all our markets – most noticeably in the UK and Germany – and we have delivered strong operational improvements across the business.
“Clearly there is much more to do, but this period of transition has repositioned Vodafone for multi-year growth.
“Looking ahead, we expect to see broad-based momentum across Europe and Africa, and for Germany to return to top-line growth during this year. This is reflected in our guidance for profit and cash flow growth for the year ahead.”
The FTSE 100 firm’s share price has been relatively stable over the past 12 months, dropping slightly from 77.16p to 72.50p.
It currently has a market cap of £18.06bn.