Vodafone shares were down on Thursday after reporting Q3 results, but investors shouldn’t be too disappointed. Growth was respectable, and the share price decline is likely a consequence of the strong run going into results and slight disappointment around the UK and Germany.
The company recorded adjusted EBITDAaL growth of 2.3% on an organic basis to €2.8 billion. Total revenue surged 6.5% to €10.5 billion, propelled by continued expansion in Africa and the consolidation of Three UK and Telekom Romania assets.
Africa was again a bright spot with organic service revenue growth of 13.5%, matching the previous quarter’s impressive momentum. Turkey also contributed significantly, with service revenue increasing 3.7% in euro terms.
UK service revenue declined by 0.5%, while Germany grew by 0.7%. As the group’s two largest geographies by revenue, this will be a concern that balances out encouraging numbers elsewhere.
Vodafone has completed €3.5 billion in share buybacks since May 2024. A further €500 million tranche begins today, underscoring management’s confidence in the business’s trajectory and its commitment to returning capital to shareholders.
Vodafone shares were down 7% on Thursday but are still up 65% over the past year.
“Investors shouldn’t read too much into the fall for Vodafone this morning, given the strong run from the shares in recent months,” said Chris Beauchamp, Chief Market Analyst UK at IG.
“All the signs point to continued strong performance in coming months, and even the competitive pricing pressures in Europe appear not to be having too much of an impact. Some retrenchment would be welcome, allowing a measured view to develop on what is one of the FTSE’s more impressive turnaround stories.”