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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
Then also in FY27, I would continue to see a year-over-year challenge, from an emerging markets growth perspective. On the positive note, I think what we are seeing is that the mix in our EBITDAaL contribution continues to shift back more favourably to Europe now in the balance between emerging markets and Europe, and that obviously drives also good predictability, which should be a net positive. I have got a question around Germany, just to unpack a bit of what you mentioned, Margherita, around the turnaround initiatives that you have taken so far and how we see the fruits of that bearing into the numbers. You talked just through a lot of different things that you have done in Germany. But if we look at the moment and we strip out the MDU effect and the 1&1 impact, the German revenue trends are still declining 2% to 3%. So I would love to understand what you think it takes in the timeline to see the underlying momentum starting to improve? Then if we layer on to that, the scaling effect in 1&1, how should we think about the H2 outlook for Germany for revenue and EBITDAaL? Okay. Sure. First of all, in terms of our expectations for Germany overall. We certainly expect that Germany will continue to grow in the second half year. The wholesale support will obviously be a factor in that, I would also expect that towards the end of the year, our B2B performance will start to move upwards because we had very good success of contracting new digital services business that always takes a while to come into the numbers, but that should be helping also the year-end performance there. In terms of the impact that it has had, I really prefer always to talk about wholesale as a whole, because in conjunction with the 1&1 win, so to say, we had also then a subsequent loss of another smaller MVNO, Lyca, which went the other way around. If you make the maths out of those, the contribution of both in the quarter was just above €80 million as a whole. And then in the second half year, we would expect that the contribution from 1&1 will also be around €100 million. In Q4, we are lapping then the loss of Lyca. So those are the puts and takes to take into account in terms of wholesale momentum. In terms of underlying performance. So if we exclude wholesale, Akhil you are absolutely right, it is broadly stable. If I look at the second half of the year, you should not expect to see big step-ups quarter-on-quarter. But over time, the actions I was referring to in my introduction, which are all speaking to the long-term health of the business, will actually support our top line performance. It is a bit early to talk about FY27, as Luka was mentioning before, because, I mean, also in Germany, we will obviously have to see what the environment will be, both from a macro and from a competitive perspective. But whilst we should expect the headwind in TV to continue, and equally, we do not have full control of the dynamics in mobile, the top line will benefit from these actions. And let me maybe bring this to life a little bit. I will maybe ask Luka to take the last part of your question on 1&1, and then I will talk to the actions that we are taking. [We seem to have a mic to fix, apologies. (…)] 1&1 first. First of all, we have talked about customer experience improving. With customer experience improving, we are seeing churn reducing. It is coming through in our numbers. Clearly, the customer experience is improving because of the investments in our networks, because the changes to our approach to customer service. Overall, net-net, the NPS is going up. We are
Akhil Dattani JP Morgan
Margherita Della Valle Vodafone
Luka Mucic Vodafone
Margherita Della Valle Vodafone
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