Telecom operator Vodafone today said its revenue rose 5 percent to €9.811 billion during the October-December quarter of 2024.
Total revenue in Q3
Germany — €3,090 million
UK — €1,865 million
Other Europe — €1,436 million
Türkiye — €963 million
Africa — €2,072 million
Vodafone service revenue grew 5.6 percent in Q3 fiscal 2024-2025 to €7.9 billion, driven by business performance in the UK and Africa.
“We are on track to grow in line with our full year guidance for this year, which we reiterate today, and are looking forward to a stronger Vodafone in the years ahead,” Vodafone Group CEO Margherita Della Valle said.
Germany
Vodafone Germany’s revenue fell 6.4 percent in Q3, primarily due to the impact of the TV law change and lower broadband service revenue. In Q2, Vodafone Germany’s revenue had dropped 6.2 percent.
Total revenue of Vodafone Germany fell 7.6 percent to €3.1 billion due to lower service and equipment revenue. Service revenue declined by 6.4 percent in Q3, primarily due to the end of bulk TV contracting in Multi Dwelling Units (MDU), a lower broadband customer base, and lower mobile ARPU.
Fixed service revenue fell 10.7 percent in Q3, impacted by TV and broadband customer losses and the final phase of prior-year price increases.
Mobile service revenue declined by 1.0 percent, with ARPU pressure from market competition and lower mobile termination rates partially offset by a growing contract customer base. Vodafone Business service revenue dropped by 3.0 percent due to lower mobile ARPU and project revenue slowdown.
The broadband customer base declined by 7,000, showing an improvement from Q2. Gigabit-capable customers increased by 1,000, and Vodafone remains the largest provider of fixed-line gigabit connectivity in Germany. The MDU TV customer migration is nearly complete, with 4.1 million households retained, in line with expectations. The total TV customer base declined by 66,000, mainly due to the MDU transition. The Consumer mobile contract customer base grew by 23,000, while Business accounts saw a net loss of 5,000.
Germany Adjusted EBITDAaL is expected to be lower in the second half of FY25 due to continued investment in the turnaround, challenging mobile market conditions, and one-off items. A new management team is in place, and Vodafone is progressing with a 3,100 role reduction plan. The company stabilized its gigabit broadband customer base and completed the MDU transition. Investments in customer experience, branding, and B2B are driving improvements in customer satisfaction and brand perception.
UK
Vodafone UK’s service revenue grew 3.3 percent in Q3, driven by better customer experience following its significant investments. In Q2, Vodafone UK’s service revenue grew 1.2 percent.
Total revenue of Vodafone UK increased by 7.2 percent to €1.9 billion, driven by service revenue growth and the appreciation of the pound sterling against the euro. Service revenue grew by 7.6 percent, with organic growth of 3.3 percent, supported by Consumer and wholesale revenue, while Business revenue declined.
Mobile service revenue grew by 6.0 percent, with organic growth of 1.8 percent, benefiting from Consumer customer base expansion and project milestone deliveries in Business.
Fixed service revenue increased by 12.3 percent, with organic growth of 7.6 percent, supported by customer base expansion and higher Consumer ARPU. Vodafone Business service revenue grew by 3.7 percent, though organic revenue declined by 0.4 percent, impacted by mobile ARPU pressure and a lower customer base, partially offset by fixed growth from project work.
The Consumer contract mobile customer base grew by 37,000, but total contract growth was limited to 1,000 due to Business contract disconnections and a reclassification of some mobile customers to IoT. Broadband net additions reached a record 72,000, supported by the launch of ‘One Touch Switching’ in September 2024. Fibre coverage expanded to 18.4 million households, offering speeds up to 2.2Gbps in more locations than any other provider. Vodafone achieved the highest brand Net Promoter Score in the market across all services and reduced Consumer detractors to a record low, reflecting continued investment in customer experience.
Other Europe
Vodafone’s service revenue in Other Europe and Turkiye region was remained stable at 2.6 percent in Q3. Service revenue grew 53.1 percent in Turkiye.
Vodafone’s total revenue in Other Europe grew by 1.8 percent to €1.4 billion, with higher service revenue partially offset by local currency depreciation against the euro. Service revenue increased by 2.2 percent, with organic growth of 2.6 percent, supported by price actions in most markets and public sector project work, though offset by lower mobile termination rates. In Portugal, both Consumer and Business segments performed well, and Vodafone launched a second brand, Amigo, in response to a new entrant. In Ireland, service revenue returned to growth due to Business demand for fixed connectivity. In Greece, service revenue increased, driven by public sector growth and a higher Consumer mobile contract customer base.
Turkiye
Vodafone Turkiye’s revenue increased by 81.0 percent to €1.0 billion, driven by service revenue growth, though partially offset by local currency depreciation in prior quarters. Service revenue grew by 97.5 percent in euro terms under IAS 29, with organic growth of 83.4 percent. Excluding hyperinflationary adjustments, service revenue increased by 53.1 percent, supported by repricing actions and value accretive base management, partially offset by adverse foreign exchange movements. Vodafone Business service revenue increased by 117.0 percent in euro terms under IAS 29, with organic growth of 102.8 percent, driven by strong demand for digital services, fixed line connectivity, and mobile repricing actions. Vodafone added 341,000 mobile contract customers, including prepaid customer migrations.
Vodacom
Vodacom, its business in Africa, achieved service revenue growth of 11.6 percent in Q3 from 9.7 percent in Q2, supported by an acceleration in South Africa and growth in Egypt, driven by demand for data and price actions.
Vodacom’s total revenue increased by 7.2 percent to €2.1 billion, driven by higher service and equipment revenue and the appreciation of the South African rand, partially offset by the depreciation of the Egyptian pound. Service revenue grew by 4.1 percent, with organic growth of 11.6 percent, supported by growth in South Africa, Egypt, and all international markets except Mozambique.
In South Africa, service revenue growth accelerated due to seasonal campaigns, an improved consumer environment, and Business demand for fixed connectivity. In Egypt, service revenue continued to grow above inflation, supported by customer base expansion, price actions, and data demand, with a further price increase implemented in December following regulatory changes.
‘Vodafone Cash’ revenue increased to €30.4 million, representing 8.4 percent of Egypt’s service revenue. In international markets, service revenue was driven by a higher customer base and strong M-Pesa demand, with M-Pesa revenue growing by 9.7 percent to €103.5 million, now accounting for 27.8 percent of service revenue.
Vodacom Business service revenue rose by 6.6 percent, with organic growth of 10.8 percent, supported by rising demand for fixed connectivity, including cloud services, in South Africa. In South Africa, 61,000 mobile contract customers were added, bringing the total contract base to 7.0 million, with 78.2 percent of mobile customers using data services.
The ‘VodaPay’ super-app reached 10.1 million registered users. In Egypt, 167,000 contract customers and 669,000 prepaid customers were added, bringing the total mobile customer base to 50.7 million, while ‘Vodafone Cash’ reached 10.5 million active users, adding 0.9 million in the quarter.
In international markets, 2.3 million mobile customers were added, bringing the total base to 58.4 million, with 68.4 percent using data services. The M-Pesa customer base grew to 24.7 million active users, with 0.9 million added during the quarter.
Vodafone Business
Vodafone Business revenue grew by 5.3 percent, mainly driven by demand for digital services, fixed connectivity, and public sector project work in Greece and Romania. Vodafone added 153,000 mobile contract customers and 4,000 fixed customers across six markets in Q3.
In November 2024, Vodafone and Digi Romania signed a MoU with Hellenic Telecommunications for a potential acquisition of separate parts of its subsidiary Telekom Romania.
In December 2024, the UK’s Competition and Markets Authority approved the merger of Vodafone and Three in the UK. Vodafone expects the merger to complete in the next few months.
The sale of Vodafone Italy to Swisscom for €8 billion was completed on 31 December 2024. Vodafone used the proceeds to reduce net debt.
Baburajan Kizhakedath
