Vodafone Raises EBITDA Guidance After €3.6bn Loss

Vodafone Raises EBITDA Guidance After €3.6bn Loss

Vodafone Group Plc announced on 10‑Nov‑2026 that it has increased its full‑year fiscal 2027 adjusted EBITDAaL guidance to a range of €13.2 billion‑€13.4 billion, up from the previous range of €13.0 billion‑€13.3 billion. At the midpoint, this represents approximately 7 % organic growth year‑on‑year. The company also lifted its adjusted free cash‑flow outlook to €2.8 billion‑€3.0 billion, compared with the prior guidance of €2.6 billion‑€2.9 billion, implying about 21 % organic expansion.

First‑half 2026 revenue rose 11.4 % to €21.9 billion, helped by the consolidation of Safaricom, VodafoneThree and Telekom Romania, partially offset by adverse currency movements. Service revenue increased 12.8 % to €18.4 billion, equivalent to 5.8 % organic growth, with Africa delivering the strongest performance – organic service revenue grew 13.4 %. Vodafone Business reported a 5.8 % increase, achieving a record 6.6 % growth in the second quarter. Germany’s revenue grew only 0.4 % and the United Kingdom’s 0.9 %, prompting Chief Executive Margherita Della Valle to state that “Germany is not yet where it needs to be” and that an action plan is under way.

Adjusted EBITDAaL for the half‑year rose 12.6 % to €6.5 billion, or 6.4 % on an organic basis, with the margin improving by 0.5 percentage points to 29.5 %. The reported H1 loss of €3.6 billion contrasts with a €1.1 billion profit in the same period a year earlier and stems from a German impairment linked to higher interest rates and a write‑down of deferred tax assets in the United Kingdom following Vodafone’s buy‑out of CK Hutchison’s stake in VodafoneThree. These losses were partially offset by a non‑cash gain on the Safaricom transaction.

The interim dividend was raised 2.5 % to 2.306 euro cents per share. Across Europe and shared operations, Vodafone delivered more than €200 million of gross cost savings and reduced approximately 3,000 roles during the half‑year, with an additional announcement of 2,300 job cuts in Germany. The synergy target for VodafoneThree was increased to £0.8 billion per year by fiscal 2030 and to £1 billion by 2032.

A legal challenge continues in Kenya over Vodacom’s proposed acquisition of an additional 20 % of Safaricom. The High Court declared the deal void in September, and the Court of Appeal has ordered the status quo to be maintained while the case is heard.