FY26 Q&A Transcript

Vodafone Group Plc FY26 Q&A Transcript

Deutsche Numis

BNP Paribas Exane

Bank of America Merrill Lynch

New Street Research

Goldman Sachs

Morgan Stanley

Citigroup

UBS

JP Morgan

Berenberg

Andrew Lee Goldman Sachs

Yeah. No, understood.

Pilar López Vodafone

There was even a change by a large customer, which led to interrupting revenue in the quarter. If you look at consumer improved quarter-on-quarter due to everything Margherita was pointing to. We continue to see ARPU growth in mobile and fixed. A strong churn reduction across the brands, as Margherita was saying. You've seen the highest ever fixed broadband net adds in the UK, and also the strong performance in FWA. And all of this is thanks to this market-leading customer experience. Looking ahead into FY27, we expect the UK to grow in FY27. We also expect there will be a step-up in B2B revenues, as we lap the effect of termination of managed services contracts that we highlighted in Q1, it has been impacting us throughout the year. We will start lapping that early into this year. Also the effect I mentioned for Q4. So, definitely we expect the UK to grow in FY27. Yeah. Thank you very much. Good morning, everyone. Just a follow-up on the group portfolio and capital allocation. Vodafone has executed extremely well over the past couple of years on exiting non-core businesses, investing in your core businesses, particularly the recent UK deal, Safaricom consolidation. My question is, are there plans to continue to simplify the group? It's still a little bit complex. There's non-core stakes and JVs here and there. And given the growth in Africa that's being delivered, I think it's around a third of your profits now at the Group level, is there an opportunity to increase your exposure to Africa? I'm just really wanting to get an idea of what's the next priority in the in-tray, given the optionality, the free cash flow growth that you're delivering gives you. Sure. Paul, with our Safaricom transaction, that's exactly what we are doing in terms of increasing our exposure to Africa. We are essentially taking control of one of the most successful companies in telecom and financial services on the whole continent, so we look forward to it. Beyond this, you talked about simplification. This for me reads as let's talk about Vodafone Investments, right? A couple of years ago, I was very keen to change our operating model to make sure that we managed in a different way the markets that we control, the strong markets we have just talked about, and the markets which we don't control and where we have positions. This is why we have put together a very small team of financial and operational specialists with just the mission of managing, what is a page in our presentation with all the stakes we have, whether it's in infrastructure, whether it's in innovation. Since we have set up that team, I think it's fair to say they've been quite active, as you mentioned. I mean, we have completed the 50/50 in Vantage, we have simplified India with the sale of Indus, we have sold infrastructure in fixed in Australia and obviously the sale of the Netherlands, which we will be completing imminently. What you can expect, is looking forward that same team will continue to be focused on the same thing, which is with agility and discipline, manage the portfolio for value creation. Perfect. Maybe just a quick follow-up. Maybe it's an unfair question, but should we expect Vodacom itself to again look for opportunities to expand into different markets in Africa or, you know, increase stakes in some of their existing assets?

Paul Sidney Berenberg

Margherita Della Valle Vodafone

Paul Sidney Berenberg