Vodafone Group Plc Annual Report 2025 25
Strategic report
Governance
Financials
Other information
Our financial performance continued
Earnings per share
Consolidated statement of financial position The consolidated statement of financial position is set out on page 128 . Details on the major movements of both our assets and liabilities in the year are set out below. In accordance with IFRS requirements, Vodafone Spain and Vodafone Italy are reported as discontinued operations in the consolidated financial statements. Assets and liabilities held for sale as at 31 March 2024 were €19.0 billion and €6.9 billion, respectively, and comprised Vodafone Spain and Vodafone Italy. The disposal of Vodafone Spain completed on 31 May 2024 and the disposal of Vodafone Italy completed on 31 December 2024. There were no assets and liabilities held for sale at 31 March 2025. See note 7 ‘Discontinued operations and assets held for sale’ in the consolidated financial statements for more information. Assets Non-current assets Intangible assets decreased by €5.4 billion between 31 March 2024 and 31 March 2025 to €33.4 billion. This primarily reflects: (i) non-cash impairment charges for Vodafone Germany and Vodafone Romania totalling €4.5 billion, and (ii) amortisation exceeding additions by €1.0 billion in the year. Property, plant and equipment increased by €2.2 billion between 31 March 2024 and 31 March 2025 to €30.7 billion. This reflects an increase of €1.0 billion in owned assets and an increase of €1.2 billion in right-of-use assets. Investments in associates and joint ventures decreased by €3.1 billion between 31 March 2024 and 31 March 2025 to €6.9 billion, primarily attributable to the sale of a further 10% in Oak Holdings 1 GmbH (Vantage Towers) and the sale of the Group’s stake in Indus Towers. See note 12 ‘Associates and joint arrangements’ in the consolidated financial statements for more information.
Taxation
Other investments increased by €2.1 billion between 31 March 2024 and 31 March 2025 to €3.2 billion, due to an increase of €1.2 billion in equity securities and an increase of €0.9 billion in bond and debt securities held by the Group. Deferred tax assets decreased by €1.1 billion between 31 March 2024 and 31 March 2025 to €19.0 billion. See note 6 ‘Taxation’ in the consolidated financial statements for more information. Trade and other receivables increased by €0.5 billion between 31 March 2024 and 31 March 2025 to €6.4 billion. Current assets Current assets increased by €8.1 billion between 31 March 2024 and 31 March 2025 to €28.6 billion. This was primarily due to an increase in cash and cash equivalents of €4.8 billion, an increase of €0.8 billion in Trade and other receivables and an increase of €2.3 billion in Other investments. Total equity and liabilities Equity Total equity decreased by €7.1 billion between 31 March 2024 and 31 March 2025 to €53.9 billion, primarily due to comprehensive expense in the period of €3.2 billion, €2.0 billion of dividends paid to the Group’s shareholders and a €2.0 billion decrease attributable to the purchase of Treasury shares. Non-current liabilities Non-current liabilities decreased by €2.2 billion between 31 March 2024 and 31 March 2025 to €51.9 billion, primarily due to a decrease in Borrowings of €3.2 billion, offset by an increase in Trade and other payables of €0.8 billion.
Reported change pps
Reported change eurocents
FY25 %
FY24 %
FY25 eurocent
FY24 eurocents
Effective tax rate Adjusted effective tax rate 1
(152.0)
3.1 (155.1)
Basic (loss)/earnings per share – Continuing operations Basic (loss)/earnings per share – Total Group Adjusted basic earnings per share 1
(15.86) 4.45 (20.31) (15.94) 4.21 (20.15) 7.87 7.47 0.40
25.3
24.5
0.8
Note: 1. Adjusted effective tax rate is a non-GAAP measure. See page 213 for more information. The Group’s Effective tax rate (‘ETR’) for the year ended 31 March 2025 was (152.0)% (FY24: 3.1%). The negative ETR is driven by the €4,515 million impairments of Germany and Romania that are permanently non-deductible for tax. Excluding these the ETR would be positive 74.0%. This rate is high due to one-off items including a charge of €718 million on remeasurement of the Luxembourg deferred tax asset following a 1% corporate tax rate reduction, a €185 million tax charge on the settlement of the VISPL tax cases in India, a €164 million tax charge arising on the €26 million net gain on the disposal of a 10% stake in Oak Holdings GmbH, a net €128 million tax charge as an effect of hyper-inflation tax and accounting adjustments in Türkiye, offset by a net €(53)m credit in relation to the disposal of Indus Towers and settlement of the secondary pledge. The Group’s Adjusted ETR (‘AETR’) for the year ended 31 March 2025 was 25.3% (FY24: 24.5%). This eliminates the above stated significant one-off items, as well as the €423 million deferred tax charge for utilisation of recognised tax losses in Luxembourg. The BEPS Pillar Two Minimum Tax legislation was enacted in July 2023 in the UK with effect from 2024. The Group has applied the temporary exception under IAS 12 in relation to the accounting for deferred taxes arising from the implementation of the Pillar Two rules. The tax charge for the year ended 31 March 2025 includes a current tax charge of €7 million relating to Pillar 2 income taxes
Note: 1. Adjusted basic earnings per share is a non-GAAP measure. See page 213 for more information. Basic loss per share from continuing operations was 15.86 eurocents, compared to earnings per share of 4.45 eurocents in FY24. The decrease was primarily due to impairment losses in respect of Germany and Romania, together with a higher income tax expense, which outweighed lower net financing costs. Adjusted basic earnings per share was 7.87 eurocents, compared to 7.47 eurocents in FY24. The increase was primarily due to higher adjusted earnings, primarily from lower adjusted net financing costs, together with a lower number of shares outstanding resulting from the share buyback programme.
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