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Vodafone Group Plc
Morgan Stanley
BNP Paribas Exane
Bank of America Merrill Lynch
New Street Research
Deutsche Numis
Forward-looking statements
Barclays
JP Morgan
Citigroup
UBS
Berenberg
Just to give you some absolute numbers, which are perhaps not so easily visible. Just in the last two years, they have increased both EBITDAaL as well as cash flow back close to €300 million each. Which for the size of the business is obviously a tremendous improvement, and that is in hard currency, so not in local currency. While that growth, of course, inevitably, as we had already indicated, has started to come down because of the lowering inflation, it is still significantly outperforming inflation. And in absolute terms in euros, has still been in mid-teens on the service revenue front in the last quarter and was more than 20% up in hard currency for the half year. So where is this coming from? It is coming from a set of unique capabilities. Yes, the team has always been very prudent and forward-looking and leaning into the inflation environment by managing costs very successfully, but there is more to it from my perspective. Türkiye is probably among the best digital capabilities that we have across the Group. They have a very high proportion of digital sales. They have a very agile base management model, like a very targeted micro segment-related calls to provide them access to targeted upsell offerings, post-to-post migrations. So the team has really built a machine there around a set of digital capabilities that are very unique and that we are partially exporting also to other countries, such as the loyalty app for example, the Happy App, that we are now also rolling out in other countries. So it is not only a story of cost cutting and riding an inflation wave, not at all. It is actually based on a very proven and successful management model. And while I've shared before that as we think forward, certainly, the inflationary trends will continue to recede and therefore, growth may come down, I think they have been increasing also their relative competitive position in the market. And I think that based on the strength of the management team will certainly continue. If I can just build on that, Emmet, for a second. Looking at the Group as a whole, we are extremely proud of Türkiye, but I need to say, we are equally happy about all our countries. We regularly publish in our reports, the service revenue growth ex-Türkiye, given the hyperinflation environment, and you have seen this growing to 3% in the quarter. This is a reflection of the strength of the portfolio. We have Africa, of course, also growing strongly, double-digit EBITDAaL growth, which is in line with our upgraded guidance there. And then overall, taking on the opportunities in the UK that we have just described, and the turnaround in Germany where we have now turned the corner with the top line, but obviously are looking forward to the profitability improvement. All these taken in aggregate is, I would say, where we wanted to be through the Group transformation. And it is the reason why you hear us talking about an outlook of mid-term free cash flow growth, yes. Every part of the Group is contributing. I wanted to come back to the UK market and focus on your FWA proposition in particular. Following the Three UK merger, you had a very strong spectrum position. You mentioned in your comments earlier that you are happy with how the FWA business is developing. Could you give us a bit more detail about the net adds on that business, and what your longer-term ambition with FWA might be? How you balance that against the desire to grow on the fixed broadband base as well. Just one short clarification. When you have your FWA customers, are they included in your broadband numbers or your mobile customer numbers? Yes, I will cover it all in one go. The net adds are in mobile because that is the supporting technology. And if I am not mistaken, it is 17,000 in the quarter. They have accelerated, but let me talk to you about how we look at FWA more broadly.
Margherita Della Valle Vodafone
Joshua Mills BNP Paribas Exane
Margherita Della Valle Vodafone
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