- Vodafone approves $545 million share repurchase following 1.3% organic revenue growth
- Marks first capital return programme in five years amid ongoing restructuring
What happened: Financial turnaround takes shape
Vodafone has announced a $545 million share buyback after reporting its first quarterly revenue growth since 2021. The 1.3% organic service revenue increase was driven by successful price adjustments averaging $2.50/month across European markets and stabilising performance in Germany, which contributes $15.4 billion annually to group sales.
CEO Margherita Della Valle confirmed the buyback will commence immediately, completing by March 2026. This follows Vodafone’s $8.7 billion sale of its Spanish operations and ongoing negotiations for its Italian unit.
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Why it’s important
The capital return signals cautious optimism about Vodafone’s $1.2 billion cost-cutting programme. However, Analysys Mason research reveals the company’s $38.10 average revenue per user still trails Orange’s $45.80 in comparable markets.
The move comes as European telecoms face $188 billion in collective 5G and fibre investments by 2030, per ETNO estimates. With activist investor Cevian Capital now holding $1.9 billion in shares, Vodafone must balance shareholder returns with necessary network spending – particularly as its $13.8 billion net debt remains 2.3x EBITDA.
