Vodafone’s turnaround efforts are showing signs of success after it posted growth across all of its markets in Europe and Africa in full year results, as it continues to await a decision from the regulator on its potential merger with Three UK.
The telecoms giant reported an increase in group service revenue of 6.3 per cent in 2024 to €29.9bn (£25.7bn). Full year adjusted EBITDAaL (earnings before interest, taxes, depreciation, amortization, and adjusted loss) was €11bn (£9.5bn), slightly above a forecast based on the average consensus of 10 analysts. In 2025 it expects around the same number.
The figures exclude Vodafone’s recently-sold Italian and Spanish divisions, which were offloaded so the company could focus on its better performing businesses.
Overall group revenue fell 2.5 per cent and operating profit in 2024 dropped 74.6 per cent per cent from 2023 to €3.6bn (£3.1bn).
This was due to one off sales of Vantage Towers, Vodafone Hungary and Vodafone Ghana. Vantage Towers alone generated €8.6bn (£7.4bn) in 2024. Operating profit in 2023 was 146 per cent higher than 2022.
Sales from its business unit, a key driver of growth for Vodafone, rose by five per cent in the fourth quarter,
Margherita Della Valle
Vodafone’s relatively new chief executive Margherita Della Valle said: “A year ago, I set out my plans to transform Vodafone, including the need to right-size Europe for growth. Since then, we have announced a series of transactions and we are now delivering growth in all of our markets across Europe and Africa.
“Much more still needs to be done in the year ahead. We will step-up investment in our customer experience, improve our underlying performance in Germany and accelerate our momentum in Business, whilst also continuing to simplify our operations throughout the group.
“We are fundamentally transforming Vodafone for growth,” she added.
A highly competitive market, heavy debts and tight regulation are to blame for the stock’s poor performance over the past year, falling over 22 per cent. Vodafone also recently warned it will halve its dividend in the coming year, due to the smaller operation size, after a previous cut in 2019.
A proposed merger of its UK business with Three UK is still awaiting regulatory approval from the Competition and Markets Authority (CMA). If this goes through, chief executive Margherita Della Valle’s restructuring drive will be complete.