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Vodafone Group Plc. FY25 Q&A Transcript JP Morgan
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Akhil Dattani JP Morgan
My question is really around the guidance and the German outlook. I guess, first, if we look at the comments you have given us for Europe, you have guided to €7.2 billion to €7.4 billion of EBITDAaL. As you said, Margherita, most of your markets are now growing. If I try and back out what that means, it would imply probably mid-single digit decline for Germany. I just wondered if you could help us understand, is that the right starting point for what you are thinking? I guess, more concretely, what I would love to understand is really how I should think about the pace and timing of that German recovery you talked about. You talked about significant improvements in NPS. Maybe you could talk us through what you have done to get there, maybe some comments on [inaudible] what you are assuming there. Finally, the big topic that people really seem focused on is German pricing. Do you see a need within your guidance to respond to what your peers are doing? Thank you, Akhil. I think you have done a catch-all question, which probably is anticipating some of the other questions we will get later. So maybe I suggest I take the pricing point first and then Luka can build on the guidance. Market pricing in mobile is clearly a very important topic. After we touched on it last time in February, we have seen a few positive moves in the market. But whilst it is fair to say there were some positive moves, definitely not as much as we would have liked, as you know better than most. And we have assumed in our guidance for reference in our forecast that the environment now stays where we are. I think it is the appropriate set of expectations for financial reasons, which means that we will continue to see ARPU pressure in mobile within our numbers for the remainder of the year. This is coming mainly from the fact that whilst there were some positive moves, I think, as again, you know very well, particularly in the mid- to high-end of the market, the price points are still very aggressive, and therefore, we will continue to have pressure from that. I can talk to what we are doing. Of course, I mean, I have majored on the most important step change in Germany for us earlier in my introduction, which is the results on customer experience because, as I said just now, this is really something which we are single-mindedly focused on. But we have also taken action in mobile, as you may have noticed, to reshape our propositions in the last few months. And in particular, we have now introduced new handset bundles with device financing, which is really important for us in terms of the range of proposition we have in the market. But just concluding on pricing before handing over to Luka on the moving parts of the guidance, I would say that one thing is certain, which is, as I said, in February, with all operators in Germany having big customer bases and big backbooks, the current situation is certainly damaging for each and every one of us. Luka? Yes. Thank you. First of all, on the implied assumptions on the EBITDAaL evolution in Germany, I mean, these are new numbers, obviously. I think we have done our best to provide a pretty clear range for Europe as a whole and, I would add, a relatively narrow one. Within that, there can be puts and takes across all of the markets. What I can talk about is more than the momentum that we see for the German EBITDAaL recovery. Obviously, as Margherita has said as well, there is going to be an unknown in all of that, and that is the further evolution of the market surrounding us. What I can say with confidence, though, is that we are looking at a significant improvement of EBITDAaL as we move through the year that is partially somewhat mechanical in nature. As you know, we are going to
Margherita Della Valle Vodafone
Luka Mucic Vodafone
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