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Vodafone Raises Guidance After Return to Profit, Betting on UK With Three Buyout

The strategy centers on UK integration, cost cuts, a 5G broadband push.

Overview

  • Vodafone, which reported full-year results Tuesday, swung to a €1.86bn pre-tax profit and delivered €11.35bn of underlying earnings at the top of guidance.
  • Management forecast underlying earnings of €11.9bn to €12.2bn for 2026–27 and flagged external risks from regional conflict and the global economy.
  • Last week the group agreed a £4.3bn deal to buy CK Hutchison’s 49% stake in VodafoneThree, taking full control of the UK’s largest mobile operator by customers.
  • Vodafone expects about £700m in yearly savings by 2030 from integrating VodafoneThree and has launched a 5G home broadband service for areas without full‑fibre lines.
  • Africa delivered the strongest growth through Vodacom, while trends in Germany improved after tough quarters even though full-year service revenue there fell slightly.