Vodafone Group Plc has reported its first results since its £16.5bn merger with Three was green-lit.
In December 2024 the Competition and Markets Authority approved the combination of Vodafone and Three in the UK. It expects the merger to formally complete in the next few months.
On the final day of 2024, it completed the €8bn cash disposal of Vodafone Italy to Swisscom AG. The proceeds from the deal have been used to reduce net debt and the company’s board said it will target to return up to €2bn via share buybacks.
Total group revenue increased by 5% to €9.8bn in Q3, driven by the UK and Africa.
Its German business declined by 6.4% in the period, which it blamed primarily on the impact of a change in the law which prohibits landlords from passing cable TV fees onto tenants.
Vodafone said it is on track to deliver adjusted EBITDA of around €11bn and free cash flow of at least €2.4bn for the year.
“We are continuing to invest in the turnaround of our German business and we are starting to see improving customer trends, although conditions have become more challenging in the mobile market,” said Margherita Della Valle, group chief executive.
“During the quarter, we completed the sale of Italy for €8bn and received regulatory approval for Vodafone’s merger with Three in the UK. When the UK merger completes in the next few months, we will have fully executed Vodafone’s reshaping for growth.
“We are on track to grow in line with our full year guidance for this year, which we reiterate today, and are looking forward to a stronger Vodafone in the years ahead.”