Vodafone revenues return to growth in key market Germany

In Ireland, which is part of a group of markets that includes Portugal, Greece, Romania, Czech Republic, and Albania, the firm also said that revenue had increased, 'driven by a higher average customer base, and supported by our annual contractual price increases'

Mon, 13 May, 2024 - 11:42

Eamon Quinn

Vodafone shares rose 3% after the telecoms firm posted full-year revenue gains in all its main markets, including Britain and Germany, after disposals in other large continental European markets.

In Ireland, which is part of a group of markets that includes Portugal, Greece, Romania, Czech Republic, and Albania, the firm also said that revenue had increased , "driven by a higher average customer base, and supported by our annual contractual price increases". Mobile contract customers increased by 30,000 in Ireland, it said.

Chief executive Margherita Della Valle said Vodafone was delivering growth in all of its markets across Africa and Europe, including its largest Germany, after her decision to sell its struggling operations in Spain and Italy.

As well as the disposals, Ms Delle Valle has simplified Vodafone, including announcing 11,000 job cuts, since she permanently took the top job in April 2023.

"We have a clear path ahead and we're confident in our plan," she told reporters.

Investment in customer experience will be stepped up, she said, and the company's underlying performance in Germany would improve.

Shares in Vodafone, which have fallen 22% in the last 12 months, rose over 3%. The company posted core earnings of just over €11bn, which was in line with forecasts.

It projected that core earnings will be broadly flat this year.

Germany returned to growth, but adjusted core earnings dropped due to higher energy costs.

Vodafone’s growth in Germany was helped by higher average monthly bills for its mobile and broadband customers, which offset customer losses. The company has been hit by a new law going into effect in July that stops housing associations from bundling TV and internet subscriptions with rent, a regulation that’s expected to cost Vodafone half of the 8.5 million households it has on these contracts.

Once the market has stabilised later this year, Ms Delle Valle said Germany would return to being an "important growth engine" in the financial year starting next April.