Vodafone Group Plc Q1FY26 Q&A Transcript
Deutsche Numis
Goldman Sachs
New Street Research
Bank of America Merrill Lynch
Bernstein Societe Generale
Kepler Cheuvreux
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Barclays
Citigroup
Berenberg
JP Morgan
BNPP Exane
experience - approach to the Three base, and you have heard me mentioning before this new initiative that we are launching with Vodafone UK. We were always at the forefront of the industry now on customer service. And finally, convergence, and this will impact revenues. We have already opened the sale of fixed broadband products from Vodafone to the Three UK base. We are the fastest-growing broadband provider in the UK with our largest fibre footprint of any other operator, over 20 million households. And now the Three UK customers will access this. We are marketing directly to them. All this will impact net adds and will impact revenues going forward. And I need to say, as we have said many times before, this merger is really a fantastic opportunity for us to drive revenue across all segments. The integration is starting with good EBITDAaL growth this year and ramp up of EBITDAaL and free cash flow growth throughout the plan, as we have already discussed in the past.
Maurice Patrick
Very comprehensive, thank you.
Barclays
Carl Murdock-Smith
Hi, thank you very much. I wanted to ask about Other Europe and the outlook for service revenue trends there, specifically in Portugal and in Greece. In Portugal, we have seen a step- down in trends this quarter. Obviously, you have got the impact of Digi there, and I think we have just lapped the price increase from last year. I guess my question there is that step- down one time as we lap that, and then what is the outlook going forwards and will there be any further deterioration, or is that just a one-time move? And then in Greece, last quarter we obviously had the tough comp in the prior year in relation to public sector revenues. I was maybe expecting more of a bounce back this quarter in terms of the trends there. So just to comment around the performance there and the outlook going forwards as well, and regarding Other Europe in general. Thank you.
Citigroup
Margherita Della Valle
Yes, maybe I start just in terms of the news from Portugal and Luka can complement with the expectations on service revenue and EBITDAaL growth in Other Europe as a whole.
Vodafone Group
I would say no real surprises in Portugal. The situation with the entrance of Digi was the one we were expecting, as we discussed in the past in terms of price points. Vodafone Portugal in this context is, I need to say, competing very well. You may have seen that the impact on port-outs and customer number is small and not evolving over time, and this is a factor of the fact that we have a strong position in Portugal both on general loyalty and customer experience but also on TV specifically because TV is quite central to the offers in the market and our customer experience telco. I would say volumes are okay, but we had an impact on ARPU. You mentioned the lapping of the price increases, but more broadly, ARPUs have been under pressure in the market because of retention actions, because of the growth of second brands. And in terms of trend line, you should expect this to continue.
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