UK-based telecom giant Vodafone reported its first quarter results on Monday, showing improved revenue growth in most of its major markets.
Vodafone shares were 3.4% higher just after 8am in London.
Group service revenue grew 3.7% in Q1 compared to 1.9% in Q4 last year. Excluding Turkey, service revenue was up 1.8% versus just 0.5% in Q4. This broad-based improvement was seen across nearly all of Vodafone’s European operations.
In Germany, Vodafone’s largest market, service revenue declined 1.3% which was an improvement over the 2.8% drop seen in Q4. This was supported by price increases for broadband services.
Vodafone Business, the company’s enterprise segment, saw accelerated service revenue growth of 4.5% compared to 2.9% in Q4. This was attributed to strong performance in digital services offerings.
Africa remains a bright spot, with Vodacom service revenue expanding 9.0% compared to 7.0% in Q4. Trends improved in South Africa while growth remained robust in markets like Egypt.
For fiscal 2024, Vodafone reiterated its guidance of adjusted EBITDA after leases of around €13.3 billion and adjusted free cash flow of approximately €3.3 billion.
While challenges remain in some markets like Germany, the company appears to be stabilising commercial performance as it continues investing in next-generation networks and digital services.
Margherita Della Valle, Group Chief Executive, commented:
“As we progress our plans to transform Vodafone, we have achieved a better service revenue performance across almost all of our markets. We have delivered particularly strong trading in our Business segment and returned to service revenue growth in Europe.
“Looking ahead, we have taken the first steps of our action plan focused on customers, simplicity and growth, but we have much more still to do.”