- Group total revenue rose by 3.9%, reaching $10.1 billion in Q1.
- The merger with Three UK drove strong service revenue growth and helped boost mobile service revenue.
What happened: Vodafone Q1 growth boosted by Three UK merger
Vodafone reported a 3.9% increase in group total revenue for Q1 2025, reaching $10.1 billion. This growth was largely driven by the merger with Three UK, which contributed to a 5.3% rise in group service revenue, totalling $8.5 billion.
In terms of organic growth, service revenue rose by 5.5% year-on-year, with positive results across most regions, although Germany saw a slight decline. Organic service revenue in Germany fell by 3.2%, while organic service revenue across the rest of Europe grew by 0.2%. The company also recorded strong performance in Africa, with a notable 13.8% growth in organic service revenue, continuing its positive trajectory in emerging markets.
Vodafone’s mobile service revenue saw a substantial 19.6% increase, although organic growth in this segment was a more modest 0.4%, reflecting slower price hikes compared to the previous year. Consumer and wholesale segments contributed positively, offsetting a decline in business revenue from the end of some managed services contracts.
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Why it’s important
The growth in Vodafone’s Q1 earnings signals the company’s continued recovery following its major transformation efforts over the past two years. The merger with Three UK marks a key milestone in Vodafone’s strategy to consolidate its position in the UK market, with Margherita Della Valle, Vodafone’s CEO, confirming that network integration is progressing rapidly to deliver customer benefits.
Moreover, the continued strong growth in emerging markets, particularly in Africa, shows the success of Vodafone’s strategy to diversify its revenue streams beyond its more traditional European markets. Vodafone’s CEO has expressed confidence in delivering full-year growth in both profit and cash flow, reinforcing the company’s positive outlook for multi-year growth across Europe and Africa.
