Vodafone said its revenue increased by 2 percent to €37.4 billion in fiscal-2025 from €36.7 billion in fiscal-2024.
Vodafone, as part of the strategy of CEO Margherita Della Valle, has exited from Spain and Italy on 31 May 2024 and 31 December 2024, respectively.
In fiscal year 2025, Vodafone’s total revenue saw varied performance across regions compared to fiscal year 2024. Germany, despite remaining the top contributor, experienced a revenue decline of 6 percent from €12,957 million to €12,180 million.
The UK showed growth, with revenue increasing from €6,837 million to €7,069 million. Other Europe also recorded an increase, rising from €5,504 million to €5,694 million.
Turkiye demonstrated significant growth, with revenue jumping from €2,362 million to €3,086 million. Africa continued its upward trend, with revenue growing from €7,420 million to €7,791 million.
Germany
Vodafone Germany reported a 6.0 percent decline in revenue to €12.2 billion in FY25, primarily due to reduced service and equipment revenue. Service revenue fell by 5.0 percent, largely impacted by the termination of bulk TV contracts in multi-dwelling units (MDUs) following regulatory changes in July 2024 and a decline in broadband customers after prior-year price hikes. Fixed service revenue dropped 8.1 percent, reflecting TV and broadband losses, while mobile service revenue decreased by 1.2 percent amid competitive pressures and reduced mobile termination rates. However, higher wholesale revenue and initial customer migration from 1&1 under a national roaming agreement provided some offset. Vodafone Business service revenue declined by 2.3 percent, affected by mobile price competition and lower roaming revenue, although digital services, particularly Cloud offerings, grew strongly.
Adjusted EBITDAaL declined by 12.6 percent, mainly due to the MDU transition, with the margin falling 2.7 percentage points to 36.0 percent. Higher investments in customer experience, brand, and Vodafone Business were strategic choices to support a turnaround, though inflationary pressures weighed on costs.
On the subscriber front, broadband customers fell by 102,000, including a loss of 43,000 on the gigabit network, though stability returned in H2 FY25. Vodafone now markets gigabit speeds to nearly 75 percent of German homes. The MDU TV transition resulted in 4.2 million retained households—around 50 percent of the original base. Mobile consumer contract customers increased by 90,000, while business accounts saw 65,000 disconnections. Additionally, 6.4 million new IoT connections were added, largely from the automotive sector.
Strategically, Vodafone Germany focused on improving customer experience, expanding digital services, and investing in future growth areas, including the launch of a Cyber Security Centre in Dusseldorf to support SMEs.
UK
Vodafone UK achieved a 3.4 percent increase in revenue to €7.1 billion in FY25, driven by service revenue growth. Service revenue rose by 4.5 percent, with organic growth of 1.9 percent, supported by a growing Consumer segment despite a decline in Business. Mobile service revenue grew by 2.9 percent, underpinned by Consumer customer base expansion and business project milestones, though organic growth was modest due to softer inflation-linked price increases and mobile ARPU pressure. Fixed service revenue saw growth of 9.2 percent, boosted by customer additions and higher ARPU in Consumer, though partially offset by contract losses in Business.
Vodafone Business service revenue grew by 1.6 percent, but organic performance declined by 0.9 percent due to weaker mobile performance, despite solid demand for digital services and fixed-line offerings. Adjusted EBITDAaL increased by 10.7 percent, with a 7.9 percent organic rise, supported by revenue growth, lower energy costs, and cost efficiencies. The EBITDAaL margin improved by 1.4 percentage points to 22.0 percent.
On the subscriber front, Vodafone UK reported significant improvements in customer experience, leading to a market-leading NPS and a 30 percent drop in Ofcom mobile complaints. The mobile Consumer contract base grew by 117,000, though overall contract growth was limited to 7,000 due to low-value business disconnections and reclassifications to IoT. Fixed broadband customers rose by 227,000, supported by the ‘One Touch Switching’ initiative, with Vodafone now covering 19.4 million households with gigabit speeds and offering up to 2.2Gbps in more locations than competitors.
Strategically, Vodafone UK made a major move by securing regulatory approval for its merger with Three UK, aiming to complete the transaction in H1 2025. The combined entity will be majority-owned by Vodafone (51 percent) and will focus on enhancing customer value, driving competition, and executing an £11 billion investment plan to build one of Europe’s most advanced 5G networks.
Other Europe
Vodafone’s “Other Europe” segment saw a 3.5 percent increase in total revenue to €5.7 billion in FY25, driven by higher service and equipment revenue, though partially offset by currency depreciation. Service revenue rose by 1.8 percent, with organic growth of 2.1 percent supported by an expanding mobile and broadband contract customer base and pricing actions across most markets, partially offset by lower mobile termination rates. Quarterly growth trends softened due to a strong prior-year comparison boosted by public sector projects. Vodafone Business service revenue rose by 3.9 percent, with organic growth of 4.4 percent led by digital services and public sector projects, particularly in Portugal, Greece, and Romania, though foreign exchange pressures dampened the headline result.
Adjusted EBITDAaL declined slightly by 0.4 percent, remaining flat on an organic basis. Revenue growth and cost control were offset by delayed income recognition from certain Business contracts and a one-off provision, resulting in a 1.0 percentage point drop in the Adjusted EBITDAaL margin to 26.5 percent.
On the subscriber front, Vodafone added 462,000 new mobile contract customers across its six markets, led by Portugal and Greece. Portugal gained 170,000 mobile and 23,000 broadband customers, while Greece added 149,000 in mobile but lost 17,000 broadband subscribers. Ireland posted growth in both mobile (+18,000) and broadband (+22,000), and now reaches 1.7 million households with FTTH through partnerships like the SIRO joint venture.
Strategically, Vodafone continued to strengthen its position in competitive markets, exemplified by the launch of its second brand, Amigo, in Portugal to counter the entry of a fourth operator. In October 2024, Vodafone and Digi Romania entered advanced discussions with Hellenic Telecommunications for a potential acquisition of different segments of Telekom Romania, with regulatory approvals still pending.
Turkiye
Vodafone Turkiye’s revenue rose by 30.7 percent to €3.1 billion. Service revenue grew by 83.4 percent, driven by pricing actions, customer base expansion, and value-accretive base management. Vodafone Business service revenue rose sharply by 107.1 percent, supported by demand for digital services and inflation-linked pricing.
Adjusted EBITDAaL increased significantly by 110.5 percent on an organic basis and 65.1 percent in euro terms, reflecting strong revenue growth, operational efficiency, and digitalisation efforts. The Adjusted EBITDAaL margin improved by 5.7 percentage points to 27.3 percent.
On the subscriber front, Vodafone Turkiye added 952,000 new mobile contract customers, including prepaid-to-contract migrations, contributing meaningfully to revenue growth. Strategically, the business capitalised on inflationary pricing and digital service expansion while maintaining a disciplined focus on cost efficiency and base quality.
Africa
Vodacom Africa reported a 5.0 percent increase in revenue to €7.8 billion in FY25, with service revenue up 3.7 percent overall, driven by strong growth across South Africa, Egypt, and most international markets. In South Africa, service revenue benefited from rising demand in fixed connectivity, growth in prepaid and mobile contract segments, and a 12.1 percent increase in financial services revenue. Egypt saw service revenue outpace inflation due to effective price actions and strong data and customer growth, while Vodafone Cash revenue rose 18.8 percent. International markets were boosted by mobile subscriber growth and robust M-Pesa and data revenue, with M-Pesa contributing 27.6 percent of service revenue.
Vodacom Business service revenue grew by 5.4 percent, supported by digital service and fixed connectivity demand in South Africa. Adjusted EBITDAaL rose by 2.1 percent, driven by service revenue growth and cost initiatives, although currency depreciation slightly weighed on performance, resulting in a 0.9 percentage point decrease in margin to 33.3 percent.
On the customer front, Vodacom added 152,000 contract customers in South Africa, reaching 7.0 million, with nearly 79 percent of users active on data. The VodaPay super-app saw adoption grow to 11.9 million users. In Egypt, 656,000 new contract and 2.5 million prepaid customers were added, bringing the total to 51.5 million, with Vodafone Cash reaching 11.4 million users. Across international markets, Vodacom added 5.9 million mobile users for a total of 60.0 million, 67.3 percent of whom are active data users, while the M-Pesa customer base grew to 25.2 million.
Baburajan Kizhakedath
