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Vodafone raises free cash flow forecast after strong first half - Finance news and analysis from Global Banking & Finance Review
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Vodafone raises free cash flow forecast after strong first half

Published by Global Banking & Finance Review

Posted on November 10, 2026

2 min read

· Last updated: November 10, 2026

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Vodafone Increases Free Cash Flow Forecast Following Strong First Half Results

Vodafone's Financial Performance and Market Insights

Upgraded Guidance and Earnings Highlights

LONDON, Nov 10 (Reuters) - Vodafone raised its full-year profit and cash flow guidance on Tuesday after its service revenue growth accelerated in the first half, driven by its business-to-business offers and operations in Africa even as progress in Germany stalled.

Full-Year Forecasts

• Vodafone upgraded its guidance for adjusted core earnings for the year to end-March 2027 to 13.2-13.4 billion euros, in line with latest analyst forecasts, and adjusted free cash flow of 2.8–3.0 billion euros

Organic Free Cash Flow Growth

• At the top end, that would represent more than a 20% jump in organic free cash flow

First-Half Results

• First-half adjusted core earnings were 6.5 billion euros ($7.3 billion), up 6.4% on an organic basis driven by service revenue growth and improved operating leverage

Executive Commentary and Regional Performance

CEO Statement

• Chief Executive Margherita Della Valle said: "We have made a strong start to Vodafone's new growth chapter, with organic service revenue increasing by 5.8%"

Germany Market Analysis

• But she said: "Germany is not yet where it needs to be," as organic service revenue in the German market increased by just 0.4%, down from 1.2% in the first quarter, reflecting continued mobile pressure

Performance in Britain and Africa

• Organic service revenue grew 0.9% in Britain, driven by strong fixed line growth and higher mobile wholesale revenue

African Market Growth

• In Africa, organic service revenue accelerated to 13.4%, with growth in all of Vodacom's markets across both connectivity and financial services($1 = 0.8908 euros)

Reporting Credits

(Reporting by Paul Sandle; editing by James Davey)

Key Takeaways

  • Strong organic service revenue growth of 5.8% in H1, led by B2B services and Africa, driving margin expansion and upgraded guidance.
  • Full‑year adjusted EBITDAaL now expected at €13.2–13.4 billion and free cash flow at €2.8–3.0 billion, with the free cash flow midpoint implying around 21% organic growth (za.investing.com).
  • Germany continues to lag with only 0.4% service revenue growth, while the UK and Africa markets delivered better performance—UK organic growth at 0.9%, Africa at 13.4% (za.investing.com).

References

Frequently Asked Questions

What is Vodafone's new adjusted core earnings guidance for 2027?
Vodafone's new guidance for adjusted core earnings for the year ending March 2027 is 13.2–13.4 billion euros.
How did Vodafone perform in the first half of the year?
In the first half, Vodafone reported adjusted core earnings of 6.5 billion euros, up 6.4% organically, driven by service revenue growth.
Which regions contributed most to Vodafone's growth?
Africa and the business-to-business segment drove Vodafone's growth, while performance in Germany slowed.
How much did Vodafone's organic service revenue grow in Germany?
Organic service revenue in Germany grew by just 0.4%, down from 1.2% in the previous quarter.

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