Vodafone ups forecasts to include Safaricom, see earnings at upper end of new range
Vodafone Raises Guidance Following Safaricom Deal
LONDON, July 27 (Reuters) - European and African mobile operator Vodafone raised its guidance on Monday to reflect its Safaricom deal, and said it expected to deliver results at the upper end of its new range after a solid first-quarter trading.
Strong Financial Performance in First Quarter
Chief Executive Margherita Della Valle said the group had made a "good start to this financial year", with broad-based growth across its business driving a 5.2% rise in organic service revenue, boosted by Turkey and Africa.
Growth Drivers
Adjusted core earnings rose 6.2% in the quarter thanks to cost savings as well as the top-line growth.
Updated Earnings Outlook
Vodafone said it now expected to report adjusted core earnings of 13.0 billion to 13.3 billion euros ($14.83 billion-$15.18 billion) and adjusted free cash flow of 2.6 billion to 2.9 billion euros for the year to end-March 2027.
Analyst Expectations
Analysts had expected the company to raise its guidance after it took control of Kenya-based Safaricom last month.
Consensus Forecasts
Ahead of Monday's trading update, they had forecast Vodafone would report adjusted core earnings including Safaricom of 13.1 billion euros and adjusted free cash flow of 2.78 billion euros for the year, according to a company-compiled consensus.
($1 = 0.8763 euros)
(Reporting by Paul Sandle; Editing by Kate Holton and Louise Heavens)
