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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
Margherita Della Valle Vodafone
Thank you, David. As you know, we don't like to comment on hypotheticals. If I think about the scenario that you are describing, I would frame it as something which is really in the mid- term for a variety of reasons that you can imagine. It's not something that would impact us until an advanced mid-term. Then at that point, it would happen in the context of you're assuming a consolidation sequence, and we would have to see what that sequence looks like, but as always, when there is consolidation, as you know very well, there are puts and takes. For the markets and for the players. The final point I would like to actually mention is that if you think about how we are looking at the hypothetical scenario, keep in mind that the type of cash flow we get today from those 12 million customer has nothing to do with what you would expect to have, or we would expect in our plans to have by that point. Because, of course, we see continued progress in the network build. I think 1&1 has communicated a target of 50% population coverage by that time. Clearly a very different position from the one we are in today if it was to happen, and would have to be considered in the context of the puts and takes of consolidation. No, that's not correct in the sense that we have a number of scenarios, as you can imagine, within our range of outcomes, and we are not specific on that point. What it does assume in all scenarios is a reduction of the cash contribution as 1&1 continues to grow its coverage, as you'd imagine. Hi, morning. Thanks for taking the question. I've got a follow-up question on your free cash flow guidance and just the way we should be thinking about what you imply and mean by that. You've guided in organic terms, and you've obviously decided to give a mid-term outlook with that. I guess what I'd love to understand is, given it's a guidance on organic terms and not euro terms, should we assume therefore there's a very heavy weight of confidence around Africa vis-a-vis Europe? Can you sort of help us understand that, and how should we try and think about your perception of the translation effect into euros? See, the midterm free cash guidance assumes that the 1&1 contribution migrates away. Is that correct? I guess just to follow up on that, I mean, within Europe specifically, how are you feeling around confidence on taking a view on the midterm? You've referred, Margherita, before to regulation, the need for regulatory change. We've obviously got the new EU Merger draft rules that have come out recently or been leaked recently. Maybe you could give us your thoughts on that and to what extent you feel that can help shape a more confident and durable growth story in Europe.
David Wright Bank of America Merrill Lynch
Margherita Della Valle Vodafone
Akhil Dattani JP Morgan
Thank you, Akhil. I will take the Europe side of the equation, and Pilar.
Margherita Della Valle Vodafone
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