24 Vodafone Group Plc Annual Report 2025 Our financial performance continued
Strategic report
Governance
Financials
Other information
Net financing costs
Vodafone Investments
TPG Telecom Limited Joint Venture (Australia) – 25.1% ownership TPG Telecom Limited (‘TPG’) is a fully integrated telecommunications operator in Australia and is listed on the Australian stock exchange. The Group owns an equivalent economic interest of 25.1%, via an 11% direct stake in TPG and a 14% indirect stake, held through a 50:50 joint venture with CK Hutchison. During the year, the Group received €24 million in dividends from its direct stake in TPG. The Group provides guarantees amounting to $1.0 billion and €0.6 billion (2024: $1.0 billion and €0.6 billion) in relation to its 50% share in a multicurrency loan facility held by the joint venture. In October 2024, TPG announced the sale of its fixed network infrastructure assets and enterprise, government and wholesale fixed telecommunications services business for AU$5.25 billion. The transaction is subject to regulatory approval and other customary conditions precedent. Vodafone Idea Limited Joint Venture (India) – 24.4% ownership After undertaking equity fund-raisings and allotments to vendors since March 2024, the Group’s shareholding in Vodafone Idea Limited has reduced to 24.4%. See note 29 ‘Contingent liabilities and legal proceedings’ in the consolidated financial statements for more information. On 30 March 2025, Vodafone Idea announced that the government had agreed to convert US$4.3 billion of its outstanding spectrum dues to equity. The Group’s shareholding in Vodafone Idea Limited was subsequently diluted to 16.1% in April 2025. Indus Towers Limited (India) The Group disposed of its investment in Indus Towers Limited in two tranches during June and December 2024. See note 29 ‘Contingent liabilities and legal proceedings’ in the consolidated financial statements for more information.
VodafoneZiggo Joint Venture (Netherlands) – 50.0% ownership The results of VodafoneZiggo are prepared under US GAAP, which is broadly consistent with Vodafone’s IFRS basis of reporting. Total revenue decreased 1.1% to €4.1 billion, as a decline in the fixed customer base was only partially offset by contractual price increases. In FY25, VodafoneZiggo’s mobile contract customer base increased by 14,000 driven by growth in the Consumer segment. VodafoneZiggo’s broadband customer base declined by 105,000 customers due to the competitive price environment. VodafoneZiggo offers gigabit speeds to 7.6 million homes, providing nationwide coverage. During the year, VodafoneZiggo successfully acquired a 100 MHz spectrum license in the 3.5 GHz band. Vodafone’s share of net loss for the year decreased, driven by higher gains on derivative financial instruments and tax, partially offset by lower operating income. During the year, Vodafone received €63 million in dividends and €51 million in interest payments from the joint venture. Safaricom Associate (Kenya) – 27.8% ownership Safaricom service revenue grew by 26.3% to €2.7 billion, driven by organic growth of 11.2% and favourable foreign exchange movements of the Kenyan shilling versus the euro. Vodafone’s higher share of results was due to a strong result in Kenya. During the period, Vodafone received €136 million in dividends from Safaricom.
FY25 €m
FY24 €m
Reported change %
FY25 €m 864
FY24 €m 581
Vantage Towers (Oak Holdings 1 GmbH)
Investment income Financing costs Net financing costs Adjustments for: Mark-to-market (gains)/losses Foreign exchange losses Fair value gains on Other Investments through profit and loss Adjusted net financing costs 1
(74) (85) VodafoneZiggo Group Holding B.V. (125) (177) Safaricom Limited 201 159 Indus Towers Limited 55 140 Other 1 (including TPG Telecom Limited) (180) (133) Note: 1. The Group’s investment in Vodafone Idea Limited (‘VIL’) was reduced to €nil in the year ended 31 March 2020 and the Group has not recorded any profit or loss in respect of its share of VIL’s results since that date. Vantage Towers – 44.7% ownership Share of results of equity accounted associates and joint ventures (123) (96) In March 2023, we announced the completion of Oak Holdings GmbH, our co-control partnership for Vantage Towers with a consortium of long-term infrastructure investors led by Global Infrastructure Partners and KKR. We received initial net proceeds of €4.9 billion in March 2023, followed by a further €500 million in July 2023 and €1.3 billion in August 2024, taking total net proceeds to €6.6 billion and the Consortium’s ownership in Oak Holdings GmbH to 50%. Our effective stake in Vantage Towers is 44.7%. During the year, total revenue increased by 6.9% to €1.2 billion, supported by 2,020 net new tenancies and 839 new macro sites. As a result, the tenancy ratio increased to 1.53x (31 March 2024: 1.50x). Vodafone’s share of results in the period reflects the amortisation of intangible assets arising from the completion of the co-control partnership for Vantage Towers. During the year, Vantage Towers distributed €307 million in dividends to Vodafone.
(1,931) (2,626) (1.067) (2,045) 47.8
(2)
97
1
173
(247)
–
(1,315) (1,775) 25.9
Note: 1. Adjusted net financing costs is a non-GAAP measure. See page 213 for more information. Net financing costs decreased by €978 million and include a gain of €253 million on certain bonds bought back prior to their maturity dates; a revaluation gain of €247 million from Other investments classified at fair value through profit and mark-to-market and foreign exchange gains in the current year, combined with lower interest paid on loans and collateral balances. Adjusted net financing costs decreased by €460 million, mainly as a result of the gain of €253 million from the early redemption of the bonds bought back in the period as well as lower interest costs mainly due to repayment of the borrowings secured against the Group’s shareholdings in Indus Towers and Vodafone Idea.
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