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Vodafone Group Plc. FY25 Q&A Transcript JP Morgan
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Luka Mucic, CFO Vodafone Group Financial Highlights: Results in line with expectations Thank you very much, Margherita. First off, I am obviously pleased to report that we delivered our FY25 Group guidance for both EBITDAaL and adjusted free cash flow. Looking forward, our guidance for FY26, which is on a pre-UK merger basis, is that we expect to deliver continued underlying growth both for adjusted EBITDAaL and adjusted free cash flow. We expect Adjusted EBITDAaL for the Group to be between €11 billion and €11.3 billion. Within this, we are targeting between €7.2 billion and €7.4 billion for Europe. We also expect to deliver an acceleration in Group adjusted free cash flow growth to a range between €2.6 billion and €2.8 billion. As for the UK merger, we expect the proforma FY26 impact to be roundabout €400 million of EBITDAaL contribution and around about €200 million of adjusted free cash flow drag on a full year basis, due to front-loaded investments into the committed post-merger network buildout, integration investments and interest payments on the debt of Three UK that we will consolidate post-merger. Last but certainly not least, I am happy to say that our detailed work with Hutchison around the validation of our Joint Business Plan for the merger in the last few months has reconfirmed our expectations from the time when we agreed the original deal. We still expect, as Margherita has said, to reach a full run rate of £700 million of annual cost & CAPEX synergies by the fifth year, and free cash flow accretion of the merger by the fourth year. With that, back to you, Margherita, to close us out. Margherita Della Valle, CEO Vodafone Group Thank you, Luka. To summarise. Alongside delivering on our financial commitments, in the last two years, Vodafone has changed. We can now look forward to a new markets mix. Across two thirds of our portfolio, we have a solid growth track record, strong assets in good positions and significant potential for further growth, with clear execution plans. Within this, the UK business, which will now represent a quarter of our service revenue, is well positioned for growth as we roll out our best-in-class 5G network and deliver our merger synergies. Separately, in Germany, we will continue to drive our turnaround in what is fundamentally a good market, delivering better financial performance. This all adds up to good growth in adjusted free cash flow for FY26, and of course, even stronger growth on a per share basis. But most importantly, puts us on a new growth trajectory for the years ahead. With that, let me open to you all for questions.
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