LONDON, May 14, 2026, 16:02 BST
- Vodafone Group Public Limited Company shares traded higher in London on Thursday after the group forecast stronger earnings for the new financial year.
- The company expects FY27 adjusted EBITDAaL of €11.9 billion to €12.2 billion; adjusted EBITDAaL means adjusted earnings before interest, tax, depreciation and amortisation after leases.
- Germany remains the main weak spot, even as the group leans on Africa growth and the VodafoneThree integration in Britain.
Vodafone Group Public Limited Company shares rose in London on Thursday, extending a recovery after the telecoms group forecast higher core earnings and told investors its three-year overhaul had moved into a more focused phase. The stock was up 0.65% at 115.65 pence at 15:46 London time, trading data showed.
The move matters now because Chief Executive Margherita Della Valle has largely finished the asset reshuffle. Vodafone has narrowed its focus to Germany, Britain and Africa after exiting or reducing exposure to weaker markets, and last week agreed to take full control of VodafoneThree in Britain.
For the year to March 2027, Vodafone forecast adjusted EBITDAaL of €11.9 billion to €12.2 billion and adjusted free cash flow of €2.6 billion to €2.9 billion. Free cash flow is the cash left after operating and capital spending, a key measure for debt, dividends and buybacks.
The company reported FY26 revenue up 8.0% to €40.5 billion, service revenue up 8.8% to €33.5 billion and adjusted EBITDAaL up 3.8% to €11.4 billion. On an organic, or like-for-like, basis, service revenue rose 5.4%.
Della Valle said Vodafone was a “simpler company” and “well set for mid-term growth.” That is the pitch. The harder part is proving it quarter by quarter, not through more disposals. Reuters
Germany is still the hard case. Vodafone’s presentation showed German organic service revenue fell 0.2% in FY26, while adjusted EBITDAaL dropped 3.3%; the market accounts for 37% of group adjusted EBITDAaL. The company cited mobile price pressure, TV decline and the final effect of the MDU transition, shorthand for changes to bulk TV contracts in multi-dwelling apartment buildings.
There is a but. Matt Dorset, equity research analyst at Quilter Cheviot, said “Germany remains the key drag” and that the investment case still hinges on stabilising Vodafone’s largest market. Vodafone itself flagged trade, energy costs and foreign exchange as uncertainties for the year ahead. Quilter
Britain is the cleaner story, at least on paper. Vodafone agreed to buy CK Hutchison’s 49% stake in VodafoneThree for £4.3 billion, giving it full ownership of the UK’s largest mobile operator; Reuters reported the business had overtaken BT’s EE and O2 and is targeting £700 million of cost savings by 2030.
That puts the UK integration at the centre of the equity story. Vodafone said VodafoneThree has more than 28 million customers, with Vodafone, Three, VOXI, SMARTY and Talkmobile brands, and that early network sharing has moved ahead of plan.
Africa is carrying more of the growth load. Vodafone’s results presentation showed Africa organic service revenue growth of 12.9% and adjusted EBITDAaL growth of 14.0%, with M-Pesa revenue up 23.1% in Vodacom’s international markets and Vodafone Cash revenue up 48.2% in Egypt.
Investors were not fully sold on results day. Shares fell after adjusted earnings missed company-compiled consensus, and AJ Bell’s Russ Mould wrote that Vodafone had yet to fully convince the market that Germany was on track.
A separate filing on Thursday showed non-executive director Simon Segars bought 50,000 Vodafone shares on May 13 at £1.14365 each, for a total of £57,182.50. Small in group terms, but it lands as investors ask whether the recovery is finally becoming more than a restructuring trade.
