Vodafone 2025 Annual Report

Vodafone Group Plc Annual Report 2025 139

Strategic report

Governance

Financials

Other information

Revenue disaggregation and segmental income statement analysis Revenue reported for the year includes revenue from contracts with customers, comprising service and equipment revenue, as well as other revenue items including revenue from leases and interest revenue arising from transactions with a significant financing component. The table below presents Revenue and Adjusted EBITDAaL for the years ended 31 March 2025 and 31 March 2024.

2. Revenue disaggregation and segmental analysis (continued) Segmental analysis

The Group’s operating segments are established on the basis of those components of the Group that are evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Group has determined the chief operating decision maker to be its Chief Executive. The Group has a single group of similar services and products, being the supply of communications services and related products. Revenue is attributed to a country based on the location of the Group company reporting the revenue. Transactions between operating segments are charged at arm’s -length prices. The operating segments for Germany, UK, Türkiye and Africa are individually material for the Group and are each reporting segments for which certain financial information is provided. The aggregation of smaller operating segments into the Other Europe reporting segment reflects, in the opinion of management, the similar local market economic characteristics and regulatory environments for each of those operating segments as well as the similar products and services sold and comparable classes of customers. The Other Europe reporting segment (Albania, Czech Republic, Greece, Ireland, Portugal and Romania) largely reflects countries with membership or a close association with the European Union. Common Functions is a separate reporting segment and comprises activities which are undertaken primarily in central Group entities that do not meet the criteria for aggregation with other reporting segments. In October 2023 and March 2024, the Group announced the planned disposals of Vodafone Spain and Vodafone Italy, respectively. Consequently, Vodafone Spain and Vodafone Italy were classified as discontinued operations in the year ended 31 March 2024 and ceased to be reporting segments of the Group. The disposals completed on 31 May 2024 and 31 December 2024, respectively. Adjusted EBITDAaL is the Group’s measure of segment profit. A reconciliation of adjusted EBITDAaL, which excludes discontinued operations, to the Group’s profit or loss before taxation for the financial year is shown below. 2025 2024 2023 €m €m €m Adjusted EBITDAaL 10,932 11,019 12,424 Restructuring costs (164) (703) (538) Interest on lease liabilities 488 440 355 Loss on disposal of property, plant and equipment and intangible (25) (34) (41) Depreciation and amortisation on owned assets (7,569) (7,397) (7,520) Share of results of equity accounted associates and joint ventures (123) (96) 433 Impairment (charge)/reversal (4,515) 64 (64) Other income 565 372 9,402 Operating (loss)/profit (411) 3,665 14,451 Investment income 864 581 232 Finance costs (1,931) (2,626) (1,609) (Loss)/profit before taxation (1,478) 1,620 13,074

Revenue from contracts with customers €m

Total segment revenue €m 7,069 5,694 3,086 7,791 1,817 (189) Total segment revenue 6,837 5,504 2,362 7,420 1,864 €m (227)

Service revenue €m 10,876 5,887 4,805 2,484 6,172 663 (129) 30,758

Equipment revenue €m

Other revenue 1 €m 345

Interest revenue €m

Adjusted EBITDAaL €m 4,384 1,558 1,510 842 2,593

31 March 2025 Germany Other Europe UK

942 11,818

17 12,180

1,109 761 595 1,113

6,996 5,566 3,079 7,285

14 108 472 7

59 20 34 – – –

T ü rkiye Africa

Common Functions 2 Eliminations

57

720 1,097

45

(129)

(60)

Group

4,577 35,335 1,983

130 37,448 10,932

Revenue from

Service revenue

Equipment contracts with

Other revenue 1

Interest revenue

Adjusted EBITDAaL 5,017 €m 1,408 1,516 510 2,539

revenue

customers

31 March 2024 Germany Other Europe UK

€m

€m

€m

€m

€m

11,453 5,631 4,722 1,746 5,951 559 29,912 (150)

1,132 12,585

357 54 102 409 7

15 12,957

1,111 665 609 1,030

6,742 5,387 2,355 6,981

41 15 30 – – –

T ü rkiye Africa

Common Functions 2 Eliminations

49

608 1,256

29

(1)

(151)

(76)

Group

4,595 34,507 2,109

101 36,717 11,019

Notes: 1. O ther revenue includes lease revenue recognised under IFRS 16 ‘Leases’ (see note 20 ‘Leases’). 2. Comprises central teams and business functions.

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