230 Vodafone Group Plc Annual Report 2026
Strategic report
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Financials
Other information
Adjusted EBITDAaL and Adjusted profit attributable to owners of the parent The table below reconciles Adjusted EBITDAaL and Adjusted profit attributable to owners of the parent to their closest equivalent GAAP measures, being Operating profit and Profit attributable to owners of the parent, respectively. FY26 FY25 Reported Adjustments Adjusted Reported Adjustments Adjusted €m €m €m €m €m €m Adjusted EBITDAaL 11,351 – 11,351 10,932 – 10,932 Restructuring costs (370) 370 – (164) 164 – Interest on lease liabilities 615 – 615 488 – 488 Gain/(loss) on disposal of property, plant & equipment and intangible assets 199 – 199 (25) – (25) Depreciation and amortisation of owned assets 1 (8,481) 685 (7,796) (7,569) 605 (6,964) Share of results of equity accounted associates and joint ventures 2 (382) 600 218 (123) 276 153 Impairment charge – – – (4,515) 4,515 – Other (expense)/income (88) 88 – 565 (565) – Operating profit/(loss) 2,844 1,743 4,587 (411) 4,995 4,584 Investment and other income 1,395 – 1,395 864 (247) 617 Financing costs 3 (2,375) 161 (2,214) (1,931) (1) (1,932) Profit/(loss) before taxation 1,864 1,904 3,768 (1,478) 4,747 3,269 Income tax expense 4 (1,805) 807 (998) (2,246) 1,458 (788) Profit/(loss) for the financial year - Continuing operations 59 2,711 2,770 (3,724) 6,205 2,481 Loss for the financial year - Discontinued operations (108) 108 – (22) 22 – (Loss)/profit for the financial year (49) 2,819 2,770 (3,746) 6,227 2,481 (Loss)/profit attributable to: - Owners of the parent (Continuing) (289) 2,865 2,576 (4,147) 6,205 2,058 - Owners of the parent (Total Group) (397) 2,973 2,576 (4,169) 6,227 2,058 - Non-controlling interests 348 (154) 194 423 – 423 (Loss)/profit for the financial year (49) 2,819 2,770 (3,746) 6,227 2,481 Notes: 1. Depreciation and amortisation on owned assets excludes depreciation on leased assets and loss on disposal of leased assets included within Adjusted EBITDAaL. See page 235 for an analysis of depreciation and amortisation. The adjustment of €685 million (FY25: €605 million) relates to amortisation of customer bases and brand intangible assets. 2. See page 235 for a breakdown of the adjustments to Share of results of equity accounted associates and joint ventures to derive Adjusted share of results of equity accounted associates and joint ventures.
Non-GAAP measures - Unaudited information (continued) Other metrics Non-GAAP measure Purpose
Definition
Adjusted profit attributable to owners of the parent
This metric is used in the calculation of Adjusted basic earnings per share.
Adjusted profit attributable to owners of the parent excludes restructuring costs arising from discrete restructuring plans, amortisation of customer bases and brand intangible assets, impairment losses/reversals, other income and expense, mark-to-market and foreign exchange movements and fair value movements on Other investments through profit and loss, together with related tax effects. Adjusted basic earnings per share is Adjusted profit attributable to owners of the parent divided by the weighted average number of shares outstanding. This is the same denominator used when calculating basic earnings per share.
Adjusted basic earnings per share
This performance measure is used in discussions with the investor community.
3. See ‘Net financing costs’ on page 17 for further analysis. 4. See ‘Adjusted tax metrics’ on page 234 for further analysis.
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