# Vodafone Group back to service revenue growth in Europe, as well as Africa

- Link: https://www.directorstalkinterviews.com/vodafone-group-back-to-service-revenue-growth-in-europe-as-well-as-africa/4121011257
- Published: 2021-07-23T07:22:31+01:00
- Author: Amilia Stone

**[Vodafone Group Plc](https://www.directorstalkinterviews.com/ftse-company/vodafone-group/vod.l)**(
[LON:VOD](https://www.directorstalkinterviews.com/ftse-company/vodafone-group/vod.l))
has announced its Q1 FY22 trading update.

**Growth in Europe and Africa**

·   Group service revenue growth of 3.3%* (Q4: 0.8%*), with growth across both Consumer
and Business segments

·   Strong service revenue trend, including one-off growth of around 1.0 percentage
point following COVID-19 disruption last year

·   Good service revenue growth in Germany of 1.4%* (Q4: 1.2%*) 

| Q1 performance summary^(1) | Q1 FY22
€m | Q1 FY21€m  | Reportedgrowth | Organic_growth^(2)_ | 
| Service revenue | 9,390  | 9,110  | 3.1% | 3.3% | 
|  – of which Germany | 2,872  | 2,840  | 1.1% | 1.4% | 
| Other revenue | 1,711  | 1,396  | 22.6% | 20.2% | 
| Total revenue | 11,101  | 10,506  | 5.7% | 5.6% |

1.  Our segmental reporting has been updated to include Vantage Towers A.G. as a
separate reporting segment for the year ending 31 March 2022. See page 4.

2.  Organic growth is a Non-GAAP measure. All amounts marked with an “*” in the 
commentary represent organic growth. See page 8.

·   Europe mobile contract churn 1.6 percentage points lower than Q1 FY20 (pre-pandemic),
but commercial activity yet to return to normal conditions

·   Roaming and visitor revenue grew 56% year-on-year, but still 54% lower than 
Q1 FY20 (pre-pandemic)

·   Vodafone Business service revenue growth of 2.7%*, driven by strong growth in
IoT and digital services

·   Strong growth in Africa, with M-Pesa transaction volumes increasing 45% year-
on-year

·   On track to deliver FY22 guidance with Adjusted EBITDAaL expected to be between
€15.0 – €15.4 billion and Adjusted FCF of at least €5.2 billion

> **Nick Read, Vodafone Group Chief Executive, commented:**
> “I am pleased to report that we are back to service revenue growth in Europe, 
> as well as Africa. This growth was broad-based within both Consumer and Business
> segments, with the vast majority of our markets contributing. This is a result
> of our commercial and operating momentum built over the past 3 years as part of
> our strategic transformation.
> In Europe, the operating and retail environment has not yet returned to normal
> conditions, but we are delivering a good service revenue performance. In our Business
> segment, we are seeing stronger growth with our public sector and corporate customers,
> whilst further building a pipeline of demand for our digital services, such as
> IoT, security and cloud.
> In May we announced, for the first time, our medium-term growth ambition. We have
> entered the year in line with this ambition, on track to deliver our guidance 
> for the year, and with a continued focus to optimise our portfolio, to accelerate
> the delivery of shareholder value.”

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