Vodafone 2024 Annual Report

21 Vodafone Group Plc Annual Report 2024

Strategic report

Governance

Financials

Other information

Improved service revenue trends Our financial performance

– Total revenue: Declined by 2.5% to €36.7 billion due to the disposals of Vantage Towers, Vodafone Hungary and Vodafone Ghana in the prior financial year and adverse exchange rate movements. – Service revenue: Decreased by 1.3%, however on an organic basis, increased by 6.3%, with Europe, Africa and Business all growing. Excluding Turkey, the Group had good service revenue growth of +3.7% on an organic basis. – Operating profit: Decreased by 74.6% to €3.7 billion primarily reflects business disposals in the prior financial year, in particular the €8.6 billion gain on disposal of Vantage Towers. – Adjusted EBITDAaL: Increased by 2.2% on an organic basis as good service revenue progress was partially offset by higher energy costs and other inflationary impacts. Excluding Turkey, adjusted EBITDAaL declined by 0.6% on an organic basis. – Earnings per share: Basic earnings per share from continuing operations was 4.45 eurocents, compared to basic earnings per share of 43.66 eurocents in the prior year, primarily due to lower operating profit. Adjusted basic earnings per share was 7.47 eurocents, compared to 11.28 eurocents in the prior year, primarily due to lower adjusted EBITDAaL. – Discontinued operations: Following the announcement that we entered into binding sale agreements with respect to the sales of Vodafone Spain and Vodafone Italy, both businesses are now reported separately as discontinued operations in the consolidated financial statements.

Click or scan to watch our Group Chief Executive, Margherita Della Valle and Group Chief Financial Officer, Luka Mucic, talk about our financial performance in FY24: investors.vodafone.com/videos

Group financial performance

Re-represented 2 FY23 €m

FY24 1 €m

Reported change % (2.5) (1.3) (11.3)

Revenue

36,717 37,672 29,912 30,318 6,805 7,354 11,019 12,424

– Service revenue – Other revenue Adjusted EBITDAaL 3,4 Restructuring costs Interest on lease liabilities 5

(703) 440 (34)

(538) 355 (41)

Loss on disposal of property, plant and equipment and intangible assets Depreciation and amortisation of owned assets Share of results of equity accounted associates and joint ventures

(7,397) (7,520)

(96) 64

433 (64)

Impairment reversal/(loss) Other income Operating profit Investment income Financing costs Profit before taxation Income tax expense Profit for the financial year Attributable to: – Owners of the parent – Non-controlling interests Profit for the financial year

372 9,402 3,665 14,451 (2,626) (1,609) 581 232 1,620 13,074 1,570 12,582 (50) (65) (492) (247) 1,505 12,335 1,140 11,838 1,505 12,335 4.45c 43.66c 4.21c 42.77c 7.47c 11.28c 365 497

(74.6)

Profit for the financial year - Continuing operations Loss for the financial year - Discontinued operations

Basic earnings per share - Continuing operations Basic earnings per share - Total Group Adjusted basic earnings per share 3

Notes: 1. The FY24 results reflect average foreign exchange rates of €1:£0.86, €1:INR 89.80, €1:ZAR 20.31, €1:TRY 29.08 and €1: EGP 34.83. 2. The results for the year ended 31 March 2023 have been re-presented to reflect that the results of Vodafone Spain and Vodafone Italy are now reported as discontinued operations. See note 7 ‘Discontinued operations and assets held for sale’ in the consolidated financial statements for more information. 3. Adjusted EBITDAaL and Adjusted basic earnings per share are non-GAAP measures. See page 235 for more information. 4. Includes depreciation on leased assets of €3,003 million (FY23: €2,682 million). 5. Reversal of interest on lease liabilities included within Adjusted EBITDAaL under the Group’s definition of that metric, for re-presentation in financing costs.

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