Vodafone raises free cash flow forecast after strong first half

LONDON, Nov 10 (Reuters) - Vodafone VOD.L 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.

• 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

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

• 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

• 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%"

• 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

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

• 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)