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Vodafone Group Plc H1 FY27 Q&A Transcript
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10 November 2026 (10:00am) Vodafone H1 FY27 Q&A VODAFONE PARTICIPANTS Margherita Della Valle Vodafone Group Chief Executive Pilar López Vodafone Group Chief Financial Officer ANALYST PARTICIPANTS Akhil Dattani JP Morgan Carl Murdock-Smith Citigroup Andrew Lee Goldman Sachs Joshua Mills BNP Paribas Exane David Wright Bank of America Merrill Lynch James Ratzer New Street Research Robert Grindle Deutsche Numis Polo Tang UBS Emmet Kelly Morgan Stanley
H1 FY27 Highlights Good morning, everyone and thank you for joining us. Before moving to Q&A I'll provide an update on the actions we are taking as we begin our new chapter as a simpler, stronger and growing business. We made a strong start to our new growth chapter with good financial performance, growing customer satisfaction and a fast start with our cost programme that we announced in May. This underpins my confidence to upgrade our financial guidance for the year. As I mentioned simpler, it's worth highlighting that we have continued to simplify our portfolio during the first half of the year, completing two important transactions in the UK and with Safaricom in Kenya. In June we announced that we increased our stake in Safaricom, strengthening our exposure to one of Africa's leading operators and our class financial services platform M-Pesa. In July we took full ownership of VodafoneThree in the UK, giving us greater flexibility to move faster and capture 100% of the value created by the largest mobile operator and the fastest growing broadband provider in the market. As you heard from us last month at our VodafoneThree investor briefing, we've already seen the benefits of our 100% ownerships reflected in our plans. We raised our annual cost and capex synergy targets and provided a confident mid- term outlook with operating cash flow in the UK expected to more than triple by FY32. These transactions are a great example of how we are building a more focused Vodafone with even more exposure to attractive long-term growth opportunities. And that leads me on to talk about our good growth momentum and the strong start we've made in our multi-year growth outlook. I'm very happy with our overall Group performance in the first half of FY27, as we continue to see improvements across all Group's key metrics. Group service revenue growth accelerated to 6.4% in Q2, the highest in three years, with both Europe and Africa growing. We also delivered the best-ever growth in Vodafone Business at 6.6%. This was supported by a record performance from our digital services portfolio, as we continue to enhance our propositions with the smart, secure and sovereign solutions that our B2B and public sector customers need. In our emerging markets, once again, we reported double-digit organic growth in both Africa and Türkiye, which continues to translate into strong growth in Euro terms. Growth in adjusted EBITDAaL for the Group also accelerated to 6.4% in the first half, supported by strong top-line growth and margin expansion. And most importantly, we are on track to deliver very strong growth in adjusted free cash flow. And this is just the first year of our multi-year double-digit cash flow growth trajectory. Looking at our FY27 outlook, we said in our Q1 update in July that we were tracking towards the upper end of the Group guidance ranges. And this was after only three months of our financial year. I'm really pleased that with such a strong first half, I'm confident to upgrade our outlook. To translate what this means in percentage terms, the midpoint of our upgraded guidance range implies organic growth just above 20% in Adjusted free cash flow. Whilst I'm very happy with the group overall performance, I'm under no illusion that we still have much more to do in Germany. But if you look beyond the headlines, you can see that we've turned the corner in important parts of our business, with consistent growth in consumer broadband and in B2B.
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