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Vodafone Group Plc Annual Report 2026
Vodafone Group Plc Annual Report 2026
Strategic report
Governance
Financials
Other information
Our financial performance continued
Germany
Geographic performance summary Total revenue
Adjusted EBITDAaL margin 1
Reported growth %
Organic growth 1 %
Service revenue
Adjusted EBITDAaL 1
Capital additions
FY26 €m
FY25 €m
FY26 €m
FY25 €m
FY26 €m
FY25 €m
FY26 €m
FY25 €m
FY26 %
FY25 %
FY26 €m
FY25 €m
Total revenue
12,133 12,180 10,874 10,876 1,259 1,304 35.0% 36.0%
(0.4)
Segment results Germany
12,133 12,180 10,874 10,876 4,243 4,384 35.0 36.0 2,496 2,482 9,192 7,069 7,597 5,887 1,881 1,558 20.5 22.0 1,388 897 5,714 5,694 4,888 4,805 1,574 1,510 27.5 26.5 860 856 3,431 3,086 2,826 2,484 983 842 28.7 27.3 539 447 8,365 7,791 6,653 6,172 2,834 2,593 33.9 33.3 1,185 1,038
Service revenue Other revenue Adjusted EBITDAaL Adjusted EBITDAaL margin
– (0.2)
UK
Other Europe 2
4,243 4,384 (3.2) (3.3)
Türkiye Africa
Note: 1. Organic growth is a non-GAAP measure. See page 226 for more information. Growth
Common Functions 3 Eliminations
1,825 1,817 763 663 (164) (199) (189) (121) (129) –
45
823 1,142
–
–
–
Group
40,461 37,448 33,480 30,758 11,351 10,932 28.1 29.2 7,291 6,862 FY25 FY26
Total revenue decreased 0.4% to €12.1 billion as a result of lower equipment revenue. Service revenue remained stable, supported by the acquisition of Skaylink. On an organic basis, service revenue declined 0.2% (Q3: 0.7%, Q4: 1.3%), including a 0.8 percentage point impact from the end of bulk TV contracting in Multi-Dwelling Units (‘MDU’). Excluding this impact, organic service revenue was driven by higher wholesale revenue and strong demand for digital services in Business, offset by mobile ARPU pressure due to competitive intensity and ongoing TV decline. Mobile service revenue grew 3.0% (Q3: 2.8%, Q4: 2.7%), supported by higher wholesale revenue, as we completed the migration of 1&1 customers onto our network, partially offset by continued ARPU pressure, and a lower customer base. We now have more than 12 million 1&1 customers using our nationwide 5G network and revenue contribution reached full run-rate in Q4. Fixed service revenue decreased 2.6%, and on an organic basis declined 2.9% (Q3: -1.1%, Q4: 0.1%), as TV headwinds were partially offset by strong demand for digital services in Business. The final impact of the MDU TV transition in Q1 contributed 1.4 percentage points to the decline in fixed service revenue in FY26. The continued improvement in quarterly trends in Q4 was supported by our broadband retail pricing actions, implemented between March 2025 and January 2026, and Business digital services growth. As we continue to focus on our value approach, broadband ARPU from new customers grew over 30% year-on-year in Q4 (Q3: +21%). Vodafone Business service revenue increased 0.1%. On an organic basis, Vodafone Business service revenue declined 0.7% (Q3: -1.8%, Q4: 1.5%), due to pressure in core connectivity services, partially offset by strong digital services demand, which supported our return to growth in Q4. In December 2025, we completed the acquisition of Skaylink, a cloud, digital transformation and security specialist. The acquisition will support the acceleration of our growth in key areas, such as professional and managed services, cloud and security in Germany and across Europe. We have successfully begun integrating the business and selling their services to our customers. Adjusted EBITDAaL declined 3.2%, and on an organic basis Adjusted EBITDAaL decreased 3.3%, of which a -1.1 percentage point impact was related to the MDU transition. Excluding this, the decline in Adjusted EBITDAaL was driven by the continued impact of higher commercial investment in the prior year, and the increase in variable costs from Business digital services, partially offset by cost efficiency. The Adjusted EBITDAaL margin was 1.0 percentage points lower year-on-year at 35.0%.
Q4 %
H2 %
Total %
Q1 %
Q2 %
H1 %
Q3 %
Q4 %
H2 %
Total %
Service revenue growth
Germany
(6.0) (6.2) (5.0) (3.2) 0.5 (1.4) 0.7 2.0 1.4
–
UK
5.7 6.7 4.5 15.2 38.0 26.7 31.1 31.5 31.3 29.0 0.3 0.1 0.2 3.5 3.0 3.3 1.7 15.2 50.4 42.3 22.1 18.7 20.3 (13.5) 36.9 8.5 13.8
1.1 1.7 1.8 8.8 6.4 3.7
Other Europe 2
Türkiye Africa Group
7.3 8.4 7.9 8.2 7.3 7.7 7.8 5.3 10.8 8.1 7.3 12.0 9.6 8.8
2.3
4.0
2.8
FY25
FY26
Q4 %
H2 %
Total %
Q1 %
Q2 %
H1 %
Q3 %
Q4 %
H2 %
Total %
Organic service revenue growth 1
Germany
(6.0) (6.2) (5.0) (3.2) 0.5 (1.4) 0.7 1.3 1.0 (0.2)
UK
3.1 3.2 1.9 1.7 2.1 0.8
0.9 1.2 1.1 (0.5) (0.2) (0.4) 0.3 0.2 (0.5) (0.1) 1.2 1.2 1.2 0.5
Other Europe 2
Türkiye Africa Group
73.2 78.1 83.4 63.8 48.4 55.6 38.5 33.7 36.1 45.2 13.5 12.6 11.3 13.8 13.5 13.7 13.5 10.9 12.2 12.9 5.5 5.8 5.7 5.4 5.1 5.2 5.4 5.4 5.3 5.1
FY25
FY26
Group profitability Operating (loss)/ profit
Q4
H2
Total
Q1
Q2
H1
Q3
Q4
H2 Total
€m (3,815) (2,793) (411) 1,015 1,147 2,162 483 199 682 2,844 Adjusted EBITDAaL 1 €m 2,693 5,521 10,932 2,748 2,980 5,728 2,816 2,807 5,623 11,351 Adjusted EBITDAaL margin 1 % 28.8 28.8 29.2 29.3 29.1 29.2 26.9 27.0 27.0 28.1 Organic Adjusted EBITDAaL growth 1 % 0.3 1.3 2.5 4.9 8.7 6.8 2.3 2.3 2.3 4.5 Notes: 1. Organic service revenue growth, Group Adjusted EBITDAaL and Group Adjusted EBITDAaL margin are non-GAAP measures. See page 226 for more information. 2. Other Europe markets comprise Portugal, Ireland, Greece, Romania, Czech Republic and Albania. 3. Comprises corporate functions and shared operations. Capital additions includes software arrangements managed centrally on behalf of the Group.
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