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Vodafone H1 revenue growth beats analyst estimates, helped by acquisitions, B2B demand; outlook raised

By Reuters News


Overview

  • UK telecom operator's H1 FY27 revenue rose 11.4% yr/yr, driven by recent acquisitions

  • Adjusted EBITDAaL for H1 FY27 rose 12.6% yr/yr, beating analyst expectations

  • Company upgraded FY27 guidance for adjusted EBITDAaL and adjusted free cash flow


Outlook

  • Vodafone upgrades FY27 Group Adjusted EBITDAaL guidance to €13.2–13.4 bln

  • Company now expects FY27 Adjusted free cash flow of €2.8–3.0 bln

  • Vodafone continues to expect FY27 Europe Adjusted EBITDAaL of €7.6–7.9 bln


Result Drivers

  • BUSINESS DIGITAL SERVICES - Record growth in Vodafone Business, led by digital services for B2B and public sector customers

  • ACQUISITIONS - Revenue growth supported by consolidation of Safaricom, VodafoneThree, and Telekom Romania

  • AFRICA GROWTH - Strong organic service revenue growth in Africa, especially in connectivity and financial services


Company press release:


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

H1 Revenue

Beat

EUR 21.9 bln

EUR 21.24 bln (2 Analysts)

H1 Adjusted EBITDAaL

Beat

EUR 6.5 bln

EUR 6.37 bln (4 Analysts)

H1 Adjusted Free Cash Flow

-EUR 440 mln

H1 Net Debt

-EUR 33.47 bln

H1 Service Revenue

EUR 18.4 bln


Analyst Coverage

  • The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 7 "strong buy" or "buy", 6 "hold" and 6 "sell" or "strong sell"

  • The average consensus recommendation for the wireless telecommunications services peer group is "buy."

  • Wall Street's median 12-month price target for Vodafone Group PLC is GBp125.00, about 6.9% above its November 9 closing price of GBp116.95

  • The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 13 three months ago


Reuters Recommended Reads

  • Nov 9 - South African telco MTN's service revenue rises over 17% as Nigeria recovers

  • Nov 9 - Vodafone Deutschland to axe 2,300 jobs as it steps up cost-cutting efforts


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)

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