Vodafone Group Plc Annual Report 2025 241
Strategic report
Governance
Financials
Other information
Definition of terms Unaudited information The definitions of non-GAAP measures are included in the ‘Non-GAAP measures’ section on pages 213 to 222 . 3G
A cellular technology based on wideband code division multiple access delivering voice and faster data services. 4G or long-term evolution (‘LTE’) technology offers faster data transfer speeds than 3G. 5G is the fifth-generation wireless broadband technology which provides better speeds and coverage than 4G. Adjusted EBITDAaL is our segment performance measure in accordance with IFRS 8 (Operating Segments). Adjusted EBITDAaL is operating profit after depreciation on lease- related right of use assets and interest on lease liabilities but excluding depreciation, amortisation and gains/losses on disposal of owned assets and excluding share of results of equity accounted associates and joint ventures, impairment losses/reversals, restructuring costs arising from discrete restructuring plans, other income and expense and significant items that are not considered by management to be reflective of the underlying performance of the reporting segment. American depositary receipts is a mechanism designed to facilitate trading in shares of non-US companies on the US stock markets. The main purpose is to create an instrument which can easily be settled through US stock market clearing systems. American depositary shares are shares evidenced by American depositary receipts. ADSs are issued by a depositary bank and represent one or more shares of a non-US issuer held by the depositary bank. The main purpose of ADSs is to facilitate trading in shares of non-US companies in the US markets and, accordingly, ADRs which evidence ADSs are in a form suitable for holding in US clearing systems. Apps are software applications usually designed to run on a smartphone or tablet device and provide a convenient means for the user to perform certain tasks. They cover a wide range of activities including banking, ticket purchasing, travel arrangements, social networking and games. For example, the MyVodafone app lets customers check their bill totals on their smartphone and see the minutes, texts and data allowance remaining. Average revenue per user, defined as customer revenue and incoming revenue divided by average customers. Business-to-Consumer refers to the process of selling products and services directly between a business and consumers who are the end-users. Comprises the purchase of property, plant and equipment and intangible assets, other than licence and spectrum payments and integration capital expenditure. Total gross customer disconnections in the period divided by the average total customers in the period. Comprises the Vodacom Group. Annual General Meeting.
Cloud services
This means the customer has little or no equipment, data and software at their premises. The capability associated with the service is run from the Vodafone network and data centres instead. This removes the need for customers to make capital investments and instead they have an operating cost model with a recurring monthly fee. CO 2 e, or Carbon dioxide equivalent, is a term for describing different greenhouse gases in a common unit. For any quantity and type of greenhouse gas, CO 2 e signifies the amount of CO 2 which would have the equivalent global warming impact. The accounting charge that allocates the cost of tangible or intangible assets, whether owned or leased, to the income statement over its useful life. The measure includes the profit or loss on disposal of property, plant and equipment, software and leased assets. Refers to the removal of intercompany transactions to derive the consolidated financial statements. Comprises the Group’s European businesses and the UK.
4G 5G
CO 2 e
Adjusted EBITDAaL
Common Functions Comprises central teams and business functions. Converged customer A customer who receives fixed and mobile services (also known as unified communications) on a single bill or who receives a discount across both bills. Depreciation and amortisation
ADR
Eliminations
Europe
ADS
FCA
Financial Conduct Authority.
Financial services revenue Financial services revenue includes fees generated from the provision of advanced airtime, overdraft, financing and lending facilities, as well as merchant payments and the sale of insurance products (e.g. device insurance, life insurance and funeral cover). Fixed service revenue Service revenue (see overleaf) relating to the provision of fixed line and carrier services. Fibre to the cabinet (‘FTTC’)
Africa AGM
Involves running fibre optic cables from the telephone exchange or distribution point to the street cabinets which then connect to a standard phone line to provide broadband. Provides an end-to-end fibre optic connection the full distance from the exchange to the customer’s premises.
Applications (‘apps’)
Fibre to the home (‘FTTH’)
GAAP GSMA ICT IFRS
Generally Accepted Accounting Principles. Global System for Mobile Communications Association. Information and Communications Technology. International Financial Reporting Standards. Comprises revenue from termination rates for voice and messaging to Vodafone customers.
ARPU
B2C
Incoming revenue Integration capital additions
Capital additions
Capital additions incurred in relation to significant changes in the operating model, such as the integration of recently acquired subsidiaries. Internet of Things (‘IoT’) The network of physical objects embedded with electronics, software, sensors, and network connectivity, including built-in mobile SIM cards, that enables these objects to collect data and exchange communications with one another or a database. LTM Last twelve months. Mark-to-market Mark-to-market or fair value accounting refers to accounting for the value of an asset or liability based on the current market price of the asset or liability.
Churn
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