Vodafone Group Plc (LON:VOD) has announced its Q3 FY22 trading update.
Good performance in line with expectations and on track to meet FY22 guidance
· Group service revenue growth of 2.7%* (Q2: 2.4%*) with growth in both Europe and Africa
· Good service revenue growth trend, especially given increase in prior year comparative
· Consistent service revenue growth in Germany of 1.1%* (Q2: 1.0%*)
| Q3 performance summary | Q3 FY22 €m | Q3 FY21 €m | Reported growth % | Organic growth %1 |
| Service revenue | 9,647 | 9,357 | 3.1 | 2.7 |
| – of which Germany | 2,936 | 2,912 | 0.8 | 1.1 |
| Other revenue | 2,037 | 1,844 | ||
| Total revenue | 11,684 | 11,201 | 4.3 | 3.7 |
1. Organic growth is a non-GAAP measure. All amounts marked in the commentary with an “*” represent organic growth. See page 8.
· Good growth in Africa, and successful launch of our VodaPay ‘super-app’ with over 1.4 million downloads
· Vodafone Business service revenue growth of 0.6%*, with IoT and cloud & security growing double digits
· Reaffirming FY22 guidance with Adjusted EBITDAaL expected to be between €15.2 – €15.4 billion and Adjusted free cash flow of at least €5.3 billion
Nick Read, Vodafone Group Chief Executive, commented:
“Our team has delivered another solid quarter, demonstrating the sustainability of our growth strategy and medium-term ambition. This performance keeps us firmly on track to deliver FY22 results in line with the higher guidance we set out in November.
We remain focused on our operational priorities to strengthen commercial momentum in Germany, accelerate our transformation in Spain and position Vodafone Business to maximise EU recovery funding opportunities. We are also committed to creating value for our shareholders through proactive portfolio actions and continuing to improve returns at pace.”
A webcast Q&A session will be held at 10am on 2 February 2022. The webcast and supporting information can be accessed at investors.vodafone.com
