Vodafone Group plc (LON:VOD) has announced its H1 2027 results.
Strong start with FY27 guidance upgrade
“We have made a strong start to Vodafone’s new growth chapter, with organic service revenue increasing by 5.8%. This included our best-ever growth in Vodafone Business, with a record performance in digital services as we focus on smart, secure and sovereign solutions for our B2B and public sector customers.I am very happy about our overall Group performance, but Germany is not yet where it needs to be. We have a clear action plan in progress, which is structurally simplifying our German operations and improving customer satisfaction across all of our services.Strong Group revenue growth – together with our continued focus on productivity improvement – generated a 6.4% increase in Adjusted EBITDAaL in H1. Today, we are upgrading our guidance for both profit and cash flow for the year, and we now expect to deliver over 20% organic Adjusted Free Cash Flow growth in year one of our multi-year double-digit cash flow growth trajectory.”
Margherita Della Valle, Group Chief Executive
Financial highlights
| 6.4% | 2.306 eurocents | Upgrading FY27 Group guidance |
| Adjusted EBITDAaL organic growth | Interim dividend per share | 7% Adj. EBITDAaL & 21% Adj. FCF growth at mid-point |
Total revenue: Increased 11.4% to €21.9 billion (H1 FY26: €19.6 billion), driven by strong service revenue growth and the consolidation of Safaricom, VodafoneThree, and Telekom Romania. This was partially offset by adverse foreign exchange movements.
Service revenue: Grew 12.8% to €18.4 billion (H1 FY26: €16.3 billion), and increased 5.8% on an organic basis, with growth across all segments.
Germany: Organic service revenue increased 0.4%, with higher wholesale revenue and fixed line growth, reflecting good broadband growth in Consumer and strong digital services growth in Business, offsetting the ongoing TV decline and continued mobile pressure.
UK: Organic service revenue grew 0.9%, driven by strong fixed line growth and higher mobile wholesale revenue.
Africa: Organic service revenue accelerated to 13.4%, with growth in all of Vodacom’s markets across both connectivity and financial services.
Business service revenue: Organic service revenue increased 5.8%, and in Q2 we delivered our best-ever growth of 6.6%. This was driven by double-digit growth in digital services in Europe, as well as an improvement in core connectivity.
Adjusted EBITDAaL: Increased 12.6% to €6.5 billion (H1 FY26: €5.7 billion), and 6.4% on an organic basis driven by service revenue growth and improved operating leverage. Adjusted EBITDAaL margin improved 0.5 percentage points on an organic basis to 29.5%.
Loss/profit for the financial period: We reported a loss of €3.6 billion (H1 FY26: profit of €1.1 billion), due to non-cash accounting charges including an impairment in Germany, primarily driven by adverse changes in interest rates, and a write-down of deferred tax assets in the UK following the buyout of CK Hutchison Group Telecom Holding Limited from VodafoneThree. These items were partially offset by a non-cash accounting gain arising from the Safaricom transaction.
Shareholder returns: Interim dividend per share increased 2.5% year-on-year to 2.306 eurocents (H1 FY26: 2.25 eurocents), in line with our progressive dividend policy.
FY27 guidance: We are upgrading our Group guidance ranges to Adjusted EBITDAaL of €13.2 – 13.4 billion and Adjusted free cash flow of €2.8 – 3.0 billion.
Operational highlights
Customers: We are now NPS leaders or co-leaders in 12 markets and customer satisfaction continues to improve.
Simplicity: Strong start to our new opex efficiency target, with €0.2 billion gross savings and c.3,000 role reductions already delivered in Europe and shared operations in H1.
Growth: Our upgraded FY27 Group guidance ranges imply organic growth of 7% in Adjusted EBITDAaL and 21% in Adjusted free cash flow at the mid-points, as we make a strong start to our new growth chapter.
