- Vodafone reports 2.0% revenue growth for FY25, driven by solid performances outside Germany.
- Major portfolio reshaping sees Vodafone offload Spanish and Italian operations, alongside stake reduction in Vantage Towers.
What happened: Revenue growth and strategic reshaping boost Vodafone’s performance
Vodafone has seen its fortunes start to improve, with the telecommunications giant posting a 2.0% increase in total revenue for the year ending 31 March 2025. The company’s total revenues reached $40.3 billion, while service revenue grew 2.8% to $33.5 billion. On an organic basis, service revenue saw a notable rise of 5.1%.
The results signal a positive turn for Vodafone, aided by several significant moves to reshape its operations. The company raised $14.4 billion through the disposal of its Spanish and Italian businesses and a partial sale of its stake in Vantage Towers. These changes have provided the company with a stronger balance sheet and have helped streamline its focus.
Margherita Della Valle, Vodafone’s CEO, reflected on the progress made since the company’s transformation plans were set in motion two years ago. “We have reshaped Europe, we are seeing the positive impact of our drive for customer satisfaction in all our markets – most noticeably in the UK and Germany,” she said.
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Why it’s important
While Vodafone has seen success outside of its German operations, Germany, its largest market, continues to be a challenging region. Revenues from Germany fell by 5.0% in FY25, although this improved over the previous year’s 6.4% decline. The company cited regulatory changes regarding bulk TV contracts in multi-dwelling units (MDUs) as a key factor.
However, Vodafone is optimistic about its recovery in Germany. The German market contributed 33% of the company’s group adjusted free cash flow and achieved its highest-ever customer satisfaction score. Vodafone expects the German business to return to growth this year, which is reflected in the company’s guidance for the upcoming year, forecasting profit and cash flow growth across Europe and Africa.
Under the Vodacom brand, the company’s operations in Africa showed solid growth, with a remarkable 11.3% rise in organic service revenue. Similarly, Vodafone’s operations in Türkiye posted a striking 83.4% increase in service revenue.
As Vodafone focuses on customer satisfaction and continues its portfolio restructuring, it remains poised for sustainable growth despite the ongoing challenges in some markets.
