Vodafone Group said its revenue increased by 7.3 percent to €19.6 billion in H1 fiscal 2026 against €18.3 billion in H1 FY25 due to strong service revenue growth and the consolidation of Three UK.
Service revenue grew by 8.1 percent to €16.3 billion in H1 as compared with €15.1 billion during the first half of FY25.
Vodafone Group has generated revenue of €5,996 million from Germany, €4,409 million from the UK, €2,804 million from Other Europe, €1,601 million from Turkiye, and €3,950 million from Africa.
Germany
Vodafone Germany reported a 2.1 percent decline in total revenue to €6.0 billion, driven by lower service and equipment sales. Service revenue fell 1.4 percent, mainly due to the end of bulk TV contracts in Multi Dwelling Units (MDUs), which had a temporary negative impact in the first quarter. Revenue returned to growth in the second quarter, supported by higher mobile wholesale income.
Fixed service revenue declined 5.2 percent, reflecting lower TV ARPU and the MDU transition, while mobile service revenue grew 3.3 percent, boosted by wholesale gains from migrating 1&1 customers to Vodafone’s network. By the end of Q2, 10.5 million 1&1 customers had been migrated, with full revenue contribution expected by Q4 FY26. Vodafone Business service revenue slipped 1.2 percent due to pressure in core connectivity, partly offset by growing demand for digital services.
Vodafone’s broadband customer base fell by 49,000, as the company focused on higher-value customers and reduced promotional offers. The company remains Germany’s largest fixed-line gigabit provider, offering gigabit speeds to nearly 75 percent of homes and reaching 350,000 households through its OXG fibre joint venture. TV customers increased by 90,000 through broadband bundling, offset by declining standalone TV demand. Mobile contract customers declined by 37,000 amid strong competition, though churn improved and IoT connections grew by 4.7 million.
Operationally, Vodafone continued investing in its network, brand, and customer experience, achieving record-high Net Promoter Scores and top independent network rankings. Key initiatives included becoming Borussia Dortmund’s main sponsor, expanding mobile device financing with a five-year warranty, and agreeing to acquire Skaylink to enhance digital service offerings for business and public sector clients.
UK
Vodafone UK reported a 27.9 percent increase in total revenue to €4.4 billion, primarily driven by the consolidation of Three UK’s financial results following their merger on 31 May 2025. Service revenue rose 26.7 percent, with organic growth of 1.1 percent supported by strong performance in consumer broadband and wholesale, partially offset by declines in the business segment.
Mobile service revenue grew 35.8 percent overall, with organic growth of 0.4 percent as wholesale gains balanced out a reduction in Three UK’s consumer contract base and lower business ARPU. Fixed service revenue increased 2.4 percent, with organic growth of 3.5 percent due to continued strength in consumer broadband. Vodafone Business service revenue rose 0.4 percent overall but declined 2.3 percent organically, reflecting planned contract terminations and mobile ARPU pressure, partly offset by digital service growth and expansion of Three’s B2B customer base.
Vodafone UK strengthened its customer experience, launching the “Just Ask Once” service initiative. The mobile contract customer base declined by 32,000 due to losses at Three UK, while prepaid brands VOXI and SMARTY added 104,000 customers. Fixed broadband continued to grow strongly, adding 94,000 customers, with Vodafone now able to serve 21.8 million households with gigabit speeds through its partnership with Community Fibre in London.
Other Europe
Vodafone’s Other Europe operations reported stable total revenue of €2.8 billion year-on-year. Service revenue grew slightly by 0.2 percent, though organic service revenue declined 0.1 percent due to ARPU pressure in Portugal and the timing of business projects.
In Portugal, service revenue was impacted by lower mobile ARPU following the entry of a fourth market player, offsetting fixed-line growth, though the mobile contract base continued to expand. Ireland achieved service revenue growth driven by the business segment and a higher broadband base. Greece’s service revenue remained broadly stable as mobile gains were offset by delayed business project revenue, while Romania saw a decline due to competitive pressure and business phasing effects.
Vodafone Business service revenue increased 0.3 percent overall and remained flat organically, supported by growth across most markets but impacted by lower public sector revenue in Greece and Romania.
Vodafone added 103,000 mobile contract customers across six markets, led by growth in Portugal, Greece, and the Czech Republic. In Portugal, the company gained 77,000 mobile and 5,000 fixed broadband customers; Greece added 54,000 mobile customers but lost 9,000 fixed broadband users; and in Ireland, mobile customers declined by 6,000 while broadband grew by 9,000. Through its wholesale and fibre partnerships, including SIRO, Vodafone now reaches over 2.2 million Irish households with FTTH connectivity.
Vodacom
Vodacom reported a 6.6 percent increase in total revenue to €4.0 billion, as strong service revenue growth offset currency depreciation against the euro. Service revenue rose 7.9 percent (up 13.7 percent organically), driven by solid performance in South Africa, Egypt, and all international markets.
In South Africa, organic service revenue grew 2.2 percent, supported by higher mobile contract revenue, strong wholesale performance, and growth in fixed connectivity and financial services. Prepaid revenue declined amid competitive pricing. Financial services revenue grew 6.3 percent, led by increased demand for insurance products.
Egypt delivered robust 42.5 percent organic service revenue growth, fueled by expanding customer numbers, rising data usage, and prior price actions. Vodafone Cash revenue grew 36.7 percent and now accounts for 7.9 percent of Egypt’s service revenue.
In Vodacom’s international markets, organic service revenue grew 13.7 percent, supported by strong data demand, accelerating M-Pesa growth, and strong performances in the DRC and Tanzania, with Mozambique returning to growth. M-Pesa revenue rose 21.7 percent and now contributes 29.1 percent of service revenue. Vodacom Business service revenue increased 5.7 percent (up 11.0 percent organically) due to connectivity and digital service growth.
Adjusted EBITDAaL rose 11.0 percent (up 17.0 percent organically), driven by higher service revenue, cost efficiency initiatives, and normalization of prior-year one-offs. The EBITDAaL margin improved to 34.1 percent, up 1.3 percentage points year-on-year.
In South Africa, Vodacom’s mobile contract base decreased by 18,000 to 6.9 million, but customer satisfaction improved to market-leading levels. The VodaPay app reached 14.1 million registered users, up 3.3 million in H1. In Egypt, the company added 1.7 million mobile customers, launched 5G services, and grew Vodafone Cash to 12.7 million active users. Across international markets, Vodacom added 3.7 million new customers, reaching 63.7 million mobile users, with 27.1 million active M-Pesa users.
AI focus
Vodafone is leveraging Generative AI to enhance efficiency, automate operations, and improve customer experience across its European markets.
The company’s GenAI-powered bot, SuperTobi, is now live across all European markets, achieving a 70 percent end-to-end resolution rate and higher customer satisfaction. In call centers, AI-driven agent assistance is simplifying customer care at scale.
Vodafone is also automating network operations through zero-touch processes that use real-time diagnostics for faster and more accurate issue resolution. This approach improves operational efficiency and service quality. Additionally, the company has transformed its network investment planning by using real-time data to optimize RAN capital allocation and target areas with the highest consumer impact.
These advancements are supported by Vodafone’s advanced architecture, featuring interconnected multi-vendor APIs, a pan-European data ocean, and an integrated team deploying AI use cases across markets.
Baburajan Kizhakedath