Vodafone Group Plc Q1FY26 Q&A Transcript
Deutsche Numis
Goldman Sachs
New Street Research
Bank of America Merrill Lynch
Bernstein Societe Generale
Kepler Cheuvreux
1
Barclays
Citigroup
Berenberg
JP Morgan
BNPP Exane
You know about our investments. In the cable network, the 7 million households of fibre we are building in Germany. However, it has not about who invests more or the less. It is all about if you have one infrastructure, then there needs to be some simple rules around it. As simple as that, and nothing new, I would say, across any sector.
David Wright
Okay. Thank you.
Bank of America Merrill Lynch
Joshua Mills
Thanks, guys. My question was coming back to Germany in the comments you were making earlier about the ‘ value to volume ’ strategy and how that might differ between the broadband market and the mobile market. I think what you were saying was broadband net adds could be looked at as an indicator for fixed revenues. They are now declining again. And in that context, how important and how much of a priority is it for you to grow the German broadband base and where you need to increase investments to drive that? The reason I am asking, and I suppose the context of the question is, as you referenced, the overall market growth is slowing maybe 200,000-300,000 subs a year for the whole of Germany. Most of those, if not more than 100%, are now going to the alt net. Logically, yourselves, Deutsche, other telcos would need to be losing customers to maintain an equilibrium. And DT has said quite clearly on their recent calls that whilst they are in negative net add territory, currently they do intend to stabilise that during the course of the year. From your perspective, given the comments you have made, is growing that base still a priority as it seemed to be with our discussions last year? Or would you be comfortable to see the modest broadband sub losses continue as long as you can continue to deliver the better broadband pricing trends to you referred to earlier in the call? Thanks. Sure. We have always been talking about a fair share of market growth in terms of our targets. And in the context of a stable market, our target is to maintain our base stable. And in the specific of broadband, the driving value then is about managing the value of the front-book and managing the base up across speed with cross-selling and up-selling and then more broadly driving churn down, whether it is through customer experience or through convergence with mobile. I would say this is the simple recipe for broadband. And you mentioned investment once again, let me reiterate it. We are very happy with our level of investment in Germany. We are very happy with our position on quality in Germany. And it is really do not take it from me, take it from the independent testing from the customers. And maybe if I could have one follow up just on that recipe, the part that is missing, which we do get in other markets, is back-book price increases. And I know in Germany, it triggers high churn. There is less of a back-book culture in that market. However, in the past, Vodafone has selectively made changes. As your network quality improves, is there any opportunity for you to introduce that ingredient into the recipe as well, going forward with back-book price rises?
BNP Paribas Exane
Margherita Della Valle
Vodafone Group
Joshua Mills
BNP Paribas Exane
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