You’re already familiar with our synergy programme in the UK, but there is much more going on. Across the Group we are simplifying processes, increasing automation, expanding the use of AI and leveraging the benefits of our scaled shared platforms. These activities have given us the confidence to target a reduction of 30% of our addressable spend.
In Europe, thanks to the more predictable level of inflation, our initiatives will translate into over 10% more absolute EBITDAaL through a net absolute opex reduction reported in the P&L. While in Africa and Türkiye, revenue continues to outpace our cost base, supporting further margin expansion.
We’re only six months into the four-year programme but have already delivered initiatives worth over €200 million in Europe gross savings, with line of sight on a larger figure by the end of this financial year.
Growth
Margherita Della Valle
Our third strategic priority is growth.
Vodafone Group, CEO
Taking advantage of areas where Vodafone has a clear competitive edge and long-term structural opportunities.
In Europe, as I’ve described, we’re focused on deepening customer relationships through stronger networks, better propositions and convergence.
In Africa, we are both benefiting from and fostering strong structural growth across connectivity, financial services and digitalisation.
Organic service revenue continued to grow double digit in the first half, with growth across every market, with Adjusted EBITDAaL growing 18%.
Egypt is a great example of how expanding connectivity and digital adoption can create multiple sources of growth within a market.
Service revenue grew 36% in the first half, supported by continued customer growth, strong demand for data and financial services expansion: Vodafone Cash is growing rapidly, with revenue up over 74% and 17 million customers.
Last but not least, Vodafone Business is another key growth engines across all our geographies.
We’re expanding our B2B portfolio around our Smart, Secure and Sovereign propositions which is now delivering over 20% growth in digital services revenues.
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