Vodafone 2025 Annual Report

20 Vodafone Group Plc Annual Report 2025 Our financial performance continued

Strategic report

Governance

Financials

Other information

Geographic performance summary Vodafone Spain and Vodafone Italy are reported as discontinued operations in accordance with International Financial Reporting Standards (‘IFRS’). Accordingly, Vodafone Spain and Vodafone Italy are excluded from the results of continuing operations and are instead presented as a single amount as a loss after tax from discontinued operations in the Group’s Consolidated income statement. Discontinued operations are also excluded from the Group’s segment reporting. The disposals of Vodafone Spain and Vodafone Italy completed on 31 May 2024 and 31 December 2024, respectively. Total revenue Service revenue Adjusted EBITDAaL 1 Adjusted EBITDAaL margin 1 Capital additions Segment results FY25 €m FY24 €m FY25 €m FY24 €m FY25 €m FY24 €m FY25 % FY24 % FY25 €m FY24 €m Germany 12,180 12,957 10,876 11,453 4,384 5,017 36.0 38.7 2,482 2,515 UK 7,069 6,837 5,887 5,631 1,558 1,408 22.0 20.6 897 866 Other Europe 2 5,694 5,504 4,805 4,722 1,510 1,516 26.5 27.5 856 845 Türkiye 3,086 2,362 2,484 1,746 842 510 27.3 21.6 447 319 Africa 7,791 7,420 6,172 5,951 2,593 2,539 33.3 34.2 1,038 1,005 Common Functions 3 1,817 1,864 663 559 45 29 1,142 781 Eliminations (189) (227) (129) (150) – – – – Group 37,448 36,717 30,758 29,912 10,932 11,019 29.2 30.0 6,862 6,331 FY24 FY25 Segment service revenue growth Q4 % H2 % Total % Q1 % Q2 % H1 % Q3 % Q4 % H2 % Total % Germany 0.6 0.5 0.2 (1.5) (6.2) (3.9) (6.4) (6.0) (6.2) (5.0) UK 6.8 6.2 5.1 2.0 2.9 2.4 7.6 5.7 6.7 4.5 Other Europe 2 0.3 (4.0) (5.7) 1.6 2.1 1.9 2.2 1.1 1.7 1.8 Türkiye 15.6 11.7 9.6 54.7 18.8 33.2 97.5 15.2 50.4 42.3 Africa 1.2 (3.4) (9.2) 1.6 0.3 0.9 4.1 8.8 6.4 3.7 Group 2.9 0.7 (1.3) 3.2 0.2 1.7 5.6 2.3 4.0 2.8 FY24 FY25 Segment organic service revenue growth 1 Q4 % H2 % Total % Q1 % Q2 % H1 % Q3 % Q4 % H2 % Total % Germany 0.6 0.5 0.2 (1.5) (6.2) (3.9) (6.4) (6.0) (6.2) (5.0) UK 3.6 4.4 5.0 – 1.2 0.6 3.3 3.1 3.2 1.9 Other Europe 2 5.5 4.6 4.2 2.3 2.6 2.5 2.6 0.8 1.7 2.1 Türkiye 105.6 97.8 88.5 91.9 89.1 90.3 83.4 73.2 78.1 83.4 Africa 10.0 9.4 9.2 10.0 9.7 9.9 11.6 13.5 12.6 11.3 Group 7.1 6.7 6.3 5.4 4.2 4.8 5.2 5.4 5.3 5.1

Group profitability

FY24

FY25

Q4

H2 Total

Q1

Q2

H1

Q3

Q4

H2 Total

Operating profit/ (loss)

€m 556 1,808 3,665 1,545 837 2,382 1,022 (3,815) (2,793) (411) Adjusted EBITDAaL 1 €m 2,797 5,592 11,019 2,681 2,730 5,411 2,828 2,693 5,52110,932 Adjusted EBITDAaL margin 1 % 29.8 29.8 30.0 29.7 29.5 29.6 28.8 28.8 28.8 29.2 Organic Adjusted EBITDAaL growth 1 % 1.2 2.2 5.1 2.5 3.8 2.2 0.3 1.3 2.5 Notes: 1. Organic service revenue growth, Group Adjusted EBITDAaL and Group Adjusted EBITDAaL margin are non-GAAP measures. See page 213 for more information. 2. Other Europe markets comprise Portugal, Ireland, Greece, Romania, Czech Republic and Albania. 3. Capital additions in FY25 includes software arrangements managed centrally on behalf of the Group.

Germany: Turnaround continuing through challenging market conditions FY25 €m FY24 €m Reported change % Organic change 1 % Other revenue 1,304 1,504 Adjusted EBITDAaL 4,384 5,017 (12.6) (12.6) Adjusted EBITDAaL margin 36.0% 38.7% Note: 1. Organic growth is a non-GAAP measure. See page 213 for more information. Growth Total revenue 12,180 12,957 (6.0) Service revenue 10,876 11,453 (5.0) (5.0) Total revenue decreased by 6.0% to €12.2 billion as a result of lower service revenue and equipment revenue. As anticipated, service revenue declined by 5.0% (Q3: -6.4%; Q4: -6.0%), primarily due to a 3.0 percentage point negative impact (Q3: -3.8 percentage points; Q4: -3.3 percentage points) from the end of bulk TV contracting in multi dwelling units (‘MDU’), which came into full effect from July 2024, as well as a lower broadband customer base following the price increases in the prior year. The small improvement in quarterly trends was driven by the lower impact of the TV law change and higher wholesale service revenue, partially offset by lower mobile ARPU.

Fixed service revenue declined by 8.1% (Q3: -10.7%; Q4: -9.7%) due to the cumulative impact of TV and broadband customer losses. The MDU transition had a 5.5 percentage point impact (Q3: -6.8 percentage points; Q4: -5.9 percentage points) on fixed service revenue growth. Excluding this impact, Q4 trends were broadly stable. Mobile service revenue declined by 1.2% (Q3: -1.0%; Q4: -1.2%) as ARPU pressure, due to higher competitive intensity in the market and lower mobile termination rates, was only partially offset by higher wholesale revenue. 1&1 began migrating their customers onto our network in the second half of the year as a part of our long-term national roaming agreement and we continue to expect the migration to reach a full run-rate during H2 FY26. Vodafone Business service revenue declined by 2.3% (Q3: -3.0%; Q4: -2.8%) as price pressure in the mobile segment, in particular from SoHo customers and large corporates optimising spend, as well as lower roaming revenue, was only partially offset by good growth in digital services. Digital services revenue continued to grow strongly, supported by strong demand for our Cloud services which grew by 15.1% in FY25. In March 2025, we announced the launch of our new Cyber Security Centre in Düsseldorf which aims to support SMEs through monitoring and resolving cyber security threats.

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