Vodafone reported a 3.9 percent increase in revenue to €9.4 billion in Q1 FY26, driven by strong service revenue growth and the consolidation of Three UK.
“We reiterate our full year guidance of growth in profit and cash flow. After two years of transformation and change, Vodafone is now well positioned for multi-year growth across both Europe and Africa,” said Margherita Della Valle, Vodafone Group Chief Executive Officer.
Service revenue
Vodafone Group service revenue rose 5.3 percent to €7.9 billion.
In Germany, service revenue declined by 3.2 percent to 2.688 million due to the impact of TV law changes, although the decline moderated compared to the previous quarter.
In the UK, service revenue increased 15.2 percent to €1,646 million primarily due to the Three UK merger, but organic growth slowed to 0.9 percent.
Other Europe saw marginal growth of 0.3 percent to €1,184 million, with mixed performance across countries.
Turkiye achieved strong service revenue growth of 22.1 percent in euro terms to €629 million, benefiting from ongoing price actions and business demand.
Africa maintained solid momentum with 13.8 percent service revenue growth to €1,555 million, supported by data and financial services.
Vodafone Business posted 4.0 percent organic growth in service revenue.
Group Adjusted EBITDAaL rose 4.9 percent on an organic basis to €2.7 billion, though operating profit declined 34.3 percent due to a high base from prior-year one-off gains.
Total revenue
Vodafone’s revenue trends in Q1 FY26 varied across key markets. In Germany, total revenue declined 3.7 percent to €3.0 billion, impacted by regulatory changes affecting TV contracts and pressure on fixed service revenue, despite improvements in mobile wholesale and digital services.
In the UK, total revenue rose 14.5 percent to €1.9 billion, largely due to the inclusion of Three UK results post-merger, though organic growth remained modest at 0.9 percent.
Other Europe recorded a slight revenue decline of 0.5 percent to €1.4 billion, as stable service revenue was offset by lower equipment sales, with competitive pressure in Portugal affecting ARPU.
In Turkiye, total revenue grew 14.8 percent to €762 million, driven by strong price-led growth in service revenue, which increased 63.8 percent organically.
In Africa, total revenue rose 6.6 percent to €1.9 billion, with broad-based growth in mobile and financial services across South Africa, Egypt, and international markets, though partially offset by currency depreciation.
ARPU
Vodafone reported ARPU pressure across several markets in Q1 FY26. In Germany, lower consumer ARPU contributed to the decline in fixed service revenue, despite improvements in wholesale and business segments.
In the UK, ARPU dilution affected mobile service revenue due to a shift in the customer mix following the Three UK merger, particularly within the Three customer base. This change in mix impacted pricing, although it was anticipated and is expected to be addressed through integration benefits.
In Other Europe, mobile ARPU declined in Portugal due to the entrance of a fourth operator, which more than offset growth in fixed-line services. In Ireland, mobile contract ARPU also decreased, even as broadband and contract customer bases expanded.
Customers
Despite these pressures, Vodafone continued to experience growth in customer bases and digital service adoption in multiple regions.
In Germany, the broadband customer base declined by 23,000 and the mobile contract base dropped by 36,000, mainly due to reduced reseller activity and business disconnections. However, TV customers increased by 28,000, aided by bundling strategies.
In the UK, the mobile contract base declined by 46,000 due to business contract disconnections and Three UK consumer losses, while the broadband base grew by 44,000, reflecting strong demand and loyalty.
In Other Europe, Vodafone added 28,000 mobile contract customers and 3,000 broadband customers across six markets.
In Turkiye, 200,000 mobile contract customers were added, including migrations from prepaid users.
In Africa, Vodacom added 78,000 contract and 636,000 prepaid mobile customers in Egypt, while international markets gained 1 million mobile customers and 0.9 million new M-Pesa users.
Capex
Vodafone maintained its focus on investment to support long-term growth and operational integration. In the UK, following the merger with Three, VodafoneThree committed to invest £11 billion over the next 10 years to develop one of Europe’s most advanced 5G networks and achieve €700 million in annual synergies by the fifth year.
In Germany, investment continued in customer experience, brand, and business services, including sponsorship of Borussia Dortmund and enhancements to unlimited data plans. The company also progressed with its network expansion through the OXG joint venture, passing around 100,000 additional homes.
Group-wide, Vodafone completed a €0.5 billion tranche of a €2 billion share buyback programme and launched the next €0.5 billion tranche, reflecting continued capital returns alongside operational investment.
Baburajan Kizhakedath
