LONDON, May 14, 2026, 16:02 BST
- Shares of Vodafone Group Public Limited Company rose in London Thursday, with the company projecting improved earnings for the upcoming financial year.
- Vodafone is projecting adjusted EBITDAaL for FY27 in the €11.9 billion to €12.2 billion range. Adjusted EBITDAaL, by the way, refers to earnings before interest, tax, depreciation and amortisation after leases.
- Germany still drags, while gains in Africa and the VodafoneThree deal in Britain help support the group.
Shares in Vodafone Group Public Limited Company gained ground in London on Thursday, building on a rebound as the telecoms operator projected stronger core earnings and signaled its three-year restructuring effort had entered a more targeted stage. As of 15:46 London time, Vodafone was up 0.65% at 115.65 pence, according to trading data.
This shift carries weight at this stage, with Chief Executive Margherita Della Valle nearly wrapping up the group’s asset overhaul. Vodafone, after pulling out or scaling down in underperforming markets, now centers operations on Germany, Britain, and Africa. Just last week, the company struck a deal to acquire full ownership of VodafoneThree in Britain.
Vodafone expects adjusted EBITDAaL to land somewhere between €11.9 billion and €12.2 billion for the year ending March 2027, with adjusted free cash flow projected between €2.6 billion and €2.9 billion. Free cash flow—what’s left after the bills and investments are paid—remains crucial for funding debt, dividends, and buybacks.
Vodafone posted an 8.0% jump in FY26 revenue to €40.5 billion. Service revenue climbed 8.8% to €33.5 billion, while adjusted EBITDAaL edged up 3.8% at €11.4 billion. Looking at organic growth, service revenue increased 5.4%.
Vodafone is “a simpler company” and “well set for mid-term growth,” Della Valle told investors. That’s the story they’re selling. Delivering on it—without leaning on further disposals—remains the test, quarter after quarter. Reuters
Germany remains Vodafone’s toughest spot. In FY26, organic service revenue there slipped 0.2%, and adjusted EBITDAaL sank 3.3%. This one market now delivers 37% of group adjusted EBITDAaL. Vodafone pointed to mobile pricing strain, a shrinking TV business, plus the last hit from the MDU transition—industry jargon for changes to big apartment TV contracts.
There’s a catch. “Germany remains the key drag,” said Matt Dorset, equity research analyst at Quilter Cheviot. The investment story, he added, still depends on Vodafone getting its biggest market under control. Vodafone, for its part, pointed to trade, energy costs, and currency swings as sticking points for the year ahead. Quilter
On paper, Britain looks tidier. Vodafone is snapping up CK Hutchison’s 49% holding in VodafoneThree for £4.3 billion, taking control of the UK’s biggest mobile player. Reuters notes the combined business has moved ahead of BT’s EE and O2, with £700 million in cost savings targeted by 2030.
The UK integration is now the main focus for the equity case. Vodafone noted that VodafoneThree serves over 28 million customers across the Vodafone, Three, VOXI, SMARTY, and Talkmobile brands, with initial network sharing progressing faster than expected.
Africa’s picking up the slack. Vodafone reported 12.9% organic service revenue growth for the region, while adjusted EBITDAaL climbed 14.0%. M-Pesa revenue jumped 23.1% in Vodacom’s international markets, and Vodafone Cash surged 48.2% in Egypt.
Investors pulled back on results day, with shares dropping after adjusted earnings landed below the company-compiled consensus. Russ Mould at AJ Bell said Vodafone hadn’t managed to clearly demonstrate to the market that Germany was moving in the right direction.
On Thursday, a separate filing revealed non-executive director Simon Segars scooped up 50,000 Vodafone shares on May 13, paying £1.14365 apiece—£57,182.50 in total. It’s not a game-changer for the group’s numbers, but the timing is notable as investors weigh whether the turnaround story is shifting from mere restructuring to real recovery.
