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Vodafone Group Plc FY26 Q&A Transcript
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FY26 Highlights
12 May 2026 (10:00am) Vodafone FY26 Q&A
Good morning, everyone and thank you for joining us. Before moving to Q&A, I will briefly provide an update on our performance in FY26, as well as our growth outlook. Vodafone is now entering a new chapter as a simpler and stronger business. Simpler because we have gone through a significant transformation over the last three years, covering all aspects of our business, including portfolio, capital structure, and operating model. We are stronger because our continued operational progress with our strategic priorities of Customers, Simplicity and Growth. With these foundations and the range of opportunities across our diversified and balanced portfolio, we are in a strong position to grow in FY27 and beyond. As I mentioned growth, that leads me on to our financial results. We are pleased with our performance in FY26, as we have achieved the upper end of our expectations. Group service revenue growth remains strong in the fourth quarter at 5.1%, with growth across both Europe and Africa. In Germany, despite the ongoing pressure in TV and the mobile market remaining competitive, our performance has improved as we are now growing in B2B and Consumer broadband. These improvements are a direct result of our actions. In Consumer broadband, we have continued to improve customer satisfaction and increased front-book prices, and our value equation is working. In B2B, we are benefiting from the capabilities we have developed in digital services, including cloud, security, and AI. In our emerging markets, we grew service revenue in euro during the year. Our second-largest division, Africa, reported a great set of results yesterday, with strong performances across all of our markets, delivering its highest service revenue growth in almost two decades. On profitability, we delivered 4.5% organic growth in Adjusted EBITDAaL for FY26, fully in line with the upper end of our guidance. We also generated €2.6 billion of Adjusted free cash flow, continuing the cash growth trajectory we have been building since FY24. Following our announcement of a progressive dividend policy, we increased the full year FY26 dividend by 2.5%. For FY27, we are guiding for continued good growth in both Adjusted EBITDAaL and Adjusted free cash flow. Let me move beyond financials for a moment to give you an update on where we are operationally and our confidence for the medium term. As you know, we are now focusing our resources on markets with sustainable structures where we have scale and strong positions. With our new portfolio, we are entering an exciting new era for connectivity. We are operating in a more supportive environment with sustainable pricing models embedded in more markets than ever before, increasingly pro-investment spectrum decisions, and a better understanding of the benefits of in-market scale. Now let me look at our strategic progress in each of our markets, starting with Germany. I'm particularly pleased that we continue to deliver consistent NPS improvements across all segments quarter after quarter with our highest ever levels in mobile and cable. This is supported by the customer care initiatives that we are rolling out across our markets, such as our ‘Ask Once’ commitment. In terms of the year ahead, we will continue to focus on becoming the market leader in customer experience, a one-stop-shop provider for fixed, mobile, and TV, and a trusted B2B partner of choice.
VODAFONE PARTICIPANTS Margherita Della Valle Vodafone Group Chief Executive Pilar López Vodafone Group Chief Financial Officer ANALYST PARTICIPANTS Robert Grindle Deutsche Numis Carl Murdock-Smith Citigroup Polo Tang UBS Joshua Mills BNP Paribas Exane David Wright Bank of America Merrill Lynch Akhil Dattani JP Morgan James Ratzer New Street Research Andrew Lee Goldman Sachs Paul Sidney Berenberg Emmet Kelly Morgan Stanley
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