Vodafone raises its full-year profit and cash-flow forecasts
The telecom group lifted its outlook after first-half growth, while saying Germany still needs improvement.
Vodafone raised its full-year profit and cash-flow forecasts Tuesday after reporting stronger first-half service revenue and adjusted earnings. The upgrade applies to the financial year ending in March 2027, not the calendar year.
The company now expects adjusted earnings before interest, tax, depreciation and amortization after leases, or EBITDAaL, of €13.2 billion to €13.4 billion. Its previous range, updated in July, was €13.0 billion to €13.3 billion.
Adjusted free cash flow is now forecast at €2.8 billion to €3.0 billion, up from €2.6 billion to €2.9 billion. Both ranges are company forecasts rather than results already earned.
Growth supports the upgrade
First-half adjusted core earnings were about €6.5 billion, up 6.4% on an organic basis. Organic service revenue increased 5.8%. Business customers and operations in Africa helped drive the performance.
Those adjusted measures help describe operating trends, but should not be read as net profit. In particular, EBITDAaL excludes several costs that ultimately affect shareholders' earnings.
Germany remains a qualification
Chief Executive Margherita Della Valle said Germany was not yet where it needed to be. The company's results presentation describes continued pressure in mobile and television alongside growth in wholesale revenue.
The contrast is the main point of the update: Vodafone has raised the group outlook without claiming that every major market has recovered. The remaining months of its financial year will determine whether stronger group growth and operating improvements deliver the new cash-flow range.
