2
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
Financial Performance We performed well in the first half, in line with our expectations. Our Group service revenue growth has accelerated to 5.8% in Q2, supported by growth across Europe and Africa. On the profitability front, Group EBITDAaL grew by 6.8% in the first half, with nearly all our markets posting EBITDAaL growth. With this solid performance across the Group and a positive outlook, we have confirmed today that we now expect to close the year at the upper end of the growth guidance that we set out in May. Good operational progress in Germany & the UK Alongside solid financial results, we have also made good operational progress in Germany and the UK. Our two largest markets have different starting points and different competitive landscapes, but both markets are demonstrating the impact of our strategic priorities : Customers, Simplicity and Growth. Taking each market in turn. Germany: Return to service revenue growth Germany is the largest telecom market in Europe, and we operate at scale across both mobile and fixed. In Mobile, our 5G standalone network covers over 90% of the population and now serves over 40 million customers, including 1&1, as well as almost 60 million IoT SIMs. And on fixed broadband, we can offer gigabit connectivity to three out of four German households, more than any other operator in the country. Our gigabit broadband reach has indeed continued to expand during the quarter. We are now marketing OXG fibre to one million homes. Our brand is strong, and customer satisfaction in Germany has stepped up in the last two years. We have simplified customer journeys, we have introduced GenAI in customer care across chatbots and agent assistance, and our improvements across all call centre KPIs are being recognised by independent testers. In terms of growth, we have followed a disciplined execution focused on value. We have introduced new propositions in mobile, driving differentiation and upselling, and we have continued to increase front book ARPUs in fixed. We also continue to expand our capabilities to satisfy the growing demand for digital services. Just two weeks ago, we announced the acquisition of an established cloud service specialist active across Germany and Europe. Looking at Germany as a whole, we are well-positioned to drive structural growth as we have the right assets and the right team in place. A team that is fully focused 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.
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