Vodafone Group Public Ltd Co 6-K, filed Feb 5, 2024
Vodafone Group Public Ltd Co (VOD)
6-K
2024-02-05
For: 2024-02-05
View Original
Added on
April 11, 2026
About this 6-K
Vodafone Group Public Ltd Co filed this 6-K on February 5, 2024.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULES 13a-16 OR 15d-16 UNDER
THE SECURITIES EXCHANGE ACT OF 1934
Dated
February 05, 2024
Commission
File Number: 001-10086
VODAFONE GROUP
PUBLIC LIMITED COMPANY
(Translation
of registrant’s name into English)
VODAFONE
HOUSE, THE CONNECTION, NEWBURY, BERKSHIRE, RG14 2FN,
ENGLAND
(Address
of principal executive offices)
Indicate
by check mark whether the registrant files or will file annual
reports under cover Form 20-F or Form 40-F.
Form
20-F ✓
Form 40-F _
This
Report on Form 6-K contains a Stock Exchange Announcement dated 05
February 2024 entitled ‘Vodafone Q3 FY24 Trading
Update’.
Vodafone Group
Plc ⫶ Q3
FY24 trading update
5 February 2024
Sustained revenue growth in Europe & Africa
Margherita Della Valle, Vodafone Group Chief Executive,
commented:
"We maintained good service revenue momentum in the third quarter
across both Europe and Africa, supported by a further acceleration
of Vodafone Business, with our Cloud and Internet of Things
services growing over 20%.
We've made good strategic progress in the first nine months of the
year, with improving customer satisfaction and three consecutive
quarters of service revenue growth in Europe. Our announced
transactions in the UK and Spain are progressing well, and we are
in active discussions in Italy. We've also begun strategic
partnerships with Microsoft and Accenture to fast-track our
transformation."
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Q3 performance summary
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Q3 FY24
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Q3 FY23
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Reported
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Organic
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€m
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€m
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growth %
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growth % 1
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||
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Service revenue
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9,383
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9,520
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(1.4)
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4.7*
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- of which Germany
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2,892
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2,882
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0.3
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0.3*
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|
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Other revenue
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1,989
|
2,118
|
|
|
|
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Total revenue
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11,372
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11,638
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(2.3)
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4.2*
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* represents organic growth. See page 2.
ǀ 1.
Non-GAAP measure. See page 8.
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● Group
service revenue growth of 4.7%* (Q2: 4.7%*), or 2.5%* (Q2:
2.8%*) excluding Turkey
● Broad-based
service revenue growth with 14 out of 17 markets
growing
● Germany
service revenue growth of 0.3%* (Q2: 1.1%*), reflecting Business
phasing and non-recurring
revenue from service providers in Q2
● Vodafone
Business: service revenue growth accelerated to 5.0%* (Q2: 4.3%*)
driven by strong performance in digital services
● Vodacom
service revenue growth of 8.8%* (Q2: 9.0%*), with improved trend in
international markets and Egypt
● FY24
guidance1,2 re-iterated:
Adjusted EBITDAaL c.€13.3 billion and Adjusted free cash flow
of c.€3.3 billion
Notes:
1.
The FY24 guidance foreign exchange rates were: €1 : GBP 0.88,
€1 : ZAR 19.30, €1 : TRY 21.10, €1 : EGP 33.38.
2.
Guidance for FY24 includes Adjusted EBITDAaL and Adjusted free cash
flow for Vodafone Spain for the 12 months ending 31 March
2024.
For more information, please contact:
Investor
Relations
Media Relations
Investors.vodafone.com
Vodafone.com/media/contact
ir@vodafone.co.uk
GroupMedia@vodafone.com
Registered Office: Vodafone House, The Connection, Newbury,
Berkshire RG14 2FN, England. Registered in England No.
1833679
A webcast Q&A session will be held at 10:00 GMT on 5 February
2024. The webcast and supporting information can be accessed
at investors.vodafone.com
Performance review
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Organic growth
All amounts marked with an '*' in this document represent organic
growth which presents performance on a comparable basis, excluding
the impact of foreign exchange rates, mergers and acquisitions, the
hyperinflation adjustment in Turkey and other adjustments to
improve the comparability of results between periods. Organic
growth figures are non-GAAP measures. See non-GAAP measures on page
8 for more information.
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Geographic performance summary
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Other
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Other
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Vantage
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Common
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Elimi-
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Germany
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UK
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Italy
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Spain
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Europe
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Vodacom1
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Markets1,2
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Towers3
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Functions
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nations
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Group
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|||||||||||||||
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Q3 FY24
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|||||||||||||||
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Service revenue
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2,892
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1,400
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1,057
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848
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1,175
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1,543
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393
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-
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137
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(62)
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9,383
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|||||||||||||||
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Other revenue
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451
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340
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122
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126
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236
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389
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139
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-
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212
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(26)
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1,989
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|||||||||||||||
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Total revenue (€m)
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3,343
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1,740
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1,179
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974
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1,411
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1,932
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532
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-
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349
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(88)
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11,372
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Organic service revenue growth
% 4
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0.3%
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5.2%
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(1.3)%
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(1.1)%
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3.6%
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8.8%
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90.4%
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-
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4.7%
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Q3 FY235
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|||||||||||||||
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Service revenue
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2,882
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1,327
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1,071
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858
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1,275
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1,668
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368
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-
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134
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(63)
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9,520
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|||||||||||||||
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Other revenue
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465
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423
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153
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113
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214
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396
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120
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329
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227
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(322)
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2,118
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|||||||||||||||
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Total revenue (€m)
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3,347
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1,750
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1,224
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971
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1,489
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2,064
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488
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329
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361
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(385)
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11,638
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FY235
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FY24
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|||||||||||||||||||||||
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Organic service revenue growth
%4
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Q1
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Q2
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H1
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Q3
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Q4
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H2
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Total
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Q1
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Q2
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H1
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Q3
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Germany
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(0.5)
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(1.1)
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(0.8)
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(1.8)
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(2.8)
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(2.3)
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(1.6)
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(1.3)
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1.1
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(0.1)
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0.3
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UK
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6.5
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6.9
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6.7
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5.3
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3.8
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4.6
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5.6
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5.7
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5.5
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5.6
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5.2
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Italy
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(2.3)
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(3.4)
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(2.8)
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(3.3)
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(2.7)
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(3.0)
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(2.9)
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(1.6)
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(1.0)
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(1.3)
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(1.3)
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Spain
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(3.0)
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(6.0)
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(4.5)
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(8.7)
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(3.7)
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(6.2)
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(5.4)
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(3.0)
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(2.7)
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(2.8)
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(1.1)
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Other Europe
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2.5
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2.9
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2.7
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2.1
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3.6
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2.8
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2.8
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4.1
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3.8
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3.9
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3.6
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Vodacom1
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6.9
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8.3
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7.6
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8.0
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7.0
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7.5
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7.5
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9.0
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9.0
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9.0
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8.8
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Other Markets1,2
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32.3
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39.7
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36.0
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48.8
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54.9
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51.7
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43.5
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74.1
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85.0
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79.3
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90.4
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Group
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2.5
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2.5
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2.5
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1.8
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1.9
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1.8
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2.2
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3.7
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4.7
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4.2
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4.7
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Downloadable performance information is available
at: investors.vodafone.com/results
Notes:
1.
Total revenue, service revenue, other revenue and organic service
revenue growth metrics for FY23 have been re-presented for the
Other Markets and Vodacom segments to reflect the move of Vodafone
Egypt from the Other Markets segment to the Vodacom segment. There
is no impact on previously reported Group metrics.
2.
The Other Markets segment comprises only Vodafone Turkey in FY24.
The comparative period also included Vodafone Ghana.
3.
In March 2023, the Group sold its controlling interest in Vantage
Towers A.G. to a joint venture entity co-controlled with KKR and
GIP.
4.
Organic service revenue growth is a non-GAAP measure. See page 8
for more information.
5.
The comparative period includes the results of Vodafone Hungary and
Vodafone Ghana which were included in the Other Europe and Other
Markets segments, respectively, until their disposal. As previously
reported, Vodafone Hungary was sold in January 2023 and Vodafone
Ghana was sold in February 2023.
Germany ⫶ Commercial
trends improving
Service revenue increased by
0.3%* (Q2: 1.1%*) as the contribution from higher broadband ARPU
was partly offset by the impact of broadband customer losses and
lower regulated rates for terminating mobile calls. The lower
growth in Q3 primarily reflects non-recurring revenue received from
mobile service providers in Q2 and lower IoT revenue in
Q3.
Fixed service revenue increased by
1.0%* (Q2: 1.4%*) as broadband ARPU growth was partially offset by
the impact of a lower broadband and TV customer base. During Q3, we
communicated price increases to a further one million customers. As
a result, we saw further fixed broadband disconnections and our
customer base declined by 76,000 (Q2: -133,000, Q1: -121,000). Our
converged customer base increased by 45,000 to 2.4 million. Gigabit
speeds are available to over 24 million households across our
hybrid fibre cable network and we have achieved strong quality and
reliability results in all four major independent network
tests.
Ahead of changes to German TV laws, which take effect from July
2024 and end the practice of bulk TV contracting in MDU apartment
complexes, we have started migrating end users to individual TV
customer contracts at scale. We currently have 8.5 million MDU TV
households, generating around €800 million in basic-TV
revenue annually. Trials to date have successfully migrated 35% to
65% of these households into individual TV contracts. During Q3 our
total TV customer base, including premium TV customers, declined by
136,000.
Mobile service revenue decreased by
0.5%* (Q2: +0.7%*) reflecting a lower total customer base and a
reduction in mobile termination rates, partially offset by higher
roaming and visitor revenue. Lower
quarter-on-quarter growth reflects
non-recurring revenue received from service providers in Q2 and
lower Business IoT revenue year-on-year in Q3. We added 95,000 new
contract customers in the quarter, supported by our ongoing
optimisation of sales channels and an improved performance of
Vodafone's own brands. We have achieved strong results in all four
major independent mobile network tests from 'Connect', 'CHIP',
'Computer BILD' and 'OpenSignal'.
Vodafone Business service revenue decreased by 1.9%* (Q2: +1.0%*)
in Q3, reflecting a
strong prior year comparative performance in public sector and
cloud services, and lower
IoT revenue. We
added 1.8 million IoT connections in the quarter, driven by strong
demand from the automotive sector. In November 2023, we expanded
our digital services proposition for SoHo businesses, with
Microsoft 365 and new security solutions now available to
customers.
UK, Italy, Spain and Other Europe ⫶ Growing
in 7 out of 9 markets
UK
Service revenue increased by 5.2%* (Q2: 5.5%*) as continued strong
growth in the Consumer and Business segments was partly offset by
lower fixed wholesale revenue.
In mobile, our contract customer base increased by 18,000 supported
by good seasonal trading. Consumer contract retention also improved
by 0.8 percentage points year-on-year. Our
digital sub-brand, 'VOXI' continued to grow, with 26,000 customers
added during the quarter.
In fixed, we added 39,000 broadband customers in Q3, and we now
have 1.3 million broadband customers. Through our partnerships with
CityFibre and Openreach we can now reach over 14.5 million
households with full fibre broadband, more than any other provider
in the UK.
Vodafone Business service revenue increased by 5.8%* (Q2: 3.2%*)
during the quarter, supported by strong growth in IoT and higher
project revenue. This follows our announcement in August 2023, that
we will be providing connectivity for Britain's smart meter network
through our partnership with Data Communications
Company.
In June 2023, we announced a binding agreement to combine our UK
business with Three UK to create a sustainable, and competitive
third scaled network operator in the UK. Following the merger,
which we expect to close around the end of calendar 2024, subject
to regulatory and shareholder approvals, Vodafone will own 51% of
the combined business and CK Hutchison 49%. This combination will
provide customers with greater choice and more value, drive greater
competition, and enable increased investment with a £11
billion plan to create one of Europe's most advanced standalone 5G
networks. Full details of the transaction can be found
here: investors.vodafone.com/merger-of-vodafone-uk-and-three-uk
Italy
Service revenue declined by 1.3%* (Q2: -1.0%*) as a result of
continued price pressure in the mobile value segment, partially
offset by strong Business demand for fixed line connectivity and
digital services.
In mobile, our Consumer prepaid active customer base declined
quarter-on-quarter, in part reflecting repricing actions across a
proportion of our customer base. Our digital sub-brand 'ho.'
continued to grow, with 36,000 net new customers, and now has 3.2
million customers. In October 2023, we agreed an extension to our
wholesale MVNO agreement with PostePay until the end of
2028.
Our fixed line customer base decreased by 24,000, however we also
added 24,000 fixed-wireless customers which are reported within our
mobile customer base. Our next generation network broadband
services are now available to 23.3 million households, including
9.1 million through our own network and our partnership with Open
Fiber. This is complemented by our fixed-wireless access services
which now cover 4.3 million households via 5G FWA and 1.3 million
households via 4G FWA.
Vodafone Business continued to grow strongly at 7.5%* (Q2: 7.5%*)
driven by good demand for both our fixed connectivity and digital
services, supported in part by the business voucher programme. This
initiative, which concluded in December 2023, has been funded via
the EU Recovery and Resilience Facility ('ERF') and subsidises
high-speed broadband connectivity. In October 2023, we announced
that Vodafone will provide hybrid 5G Mobile Private Network
infrastructure to SNAM, one of Europe's largest natural gas
transportation companies, and in November 2023 we were awarded the
public tenders for local area networks and mobile services for
public administration.
On 18 December 2023, we confirmed that we are exploring options for
in-market consolidation in Italy with several parties. There can be
no certainty that any transaction will ultimately be
agreed.
Spain
On 31 October 2023, we announced that we had entered into binding
agreements with Zegona Communications plc in relation to the sale
of 100% of Vodafone Spain. On completion, which is expected to take
place during the first half of calendar 2024, we will receive
€4.1 billion in cash and up to €0.9 billion in the form
of Redeemable Preference Shares, which redeem no later than six
years after closing. The enterprise value of €5.0 billion is
equivalent to a multiple of 5.3x Adjusted EBITDAaL and 12.7x
Operating Free Cash Flow for the 12-month period ended 31 March
2023. Full details of the transaction can be found
here: investors.vodafone.com/sale-of-vodafone-spain.
Vodafone Spain will be reported as discontinued operations in the
consolidated financial statements for the year ending 31 March
2024.
In Spain, service
revenue declined due
to continued price competition in the Consumer value segment, a
lower customer base and a reduction in mobile termination rates.
This was partially offset by the positive contribution from
inflation-linked price increases implemented in January 2023 and
higher Business revenue during the quarter. Our mobile contract
customer base increased by 29,000 and our broadband customer base
decreased by 24,000.
Other Europe
Service revenue grew by 3.6%* (Q2: 3.8%*), with all six markets
growing during the quarter, supported by our price actions in most
markets.
In Portugal, both the Consumer and Business segments continued to
grow strongly, supported by inflation-linked contractual price
increases implemented in March 2023, as well as good demand for
fixed services. We added 47,000 mobile contract customers and
31,000 fixed broadband customers during the quarter. In Ireland,
service revenue increased, driven by mobile customer base growth.
In Greece, service revenue grew, reflecting good growth in our
Business fixed segment, supported by public sector demand. During
the quarter, we added 41,000 mobile contract
customers.
Vodafone Business service revenue increased by 7.8%* (Q2: 5.2%*)
during the quarter, with growth in both connectivity and digital
services, including IoT, Cloud and SD-WAN solutions. Growth was
supported by a higher customer base, price increases in the SoHo
and SME customer segments across all markets, and public sector
contract wins in Greece and Romania.
In September 2022, we announced that we had entered into an
agreement to buy Portugal's fourth largest converged operator, Nowo
Communications, from Llorca JVCO Limited, the owner of Masmovil
Ibercom S.A. The transaction is conditional on regulatory approval.
We submitted proposed remedies which were rejected in January 2024.
We are reviewing the competition authority's comments and exploring
further options to address the authority's concerns.
Vodacom ⫶ Maintained
strong Group SR momentum
Note: Organic growth rates include Egypt in all
periods
Vodacom's service revenue grew by 8.8%* (Q2: 9.0%*), with growth in
South Africa, Egypt, and Vodacom's international
markets.
In South Africa, service revenue growth was supported by the
Consumer mobile contract segment, which benefited from a price
increase in the first quarter, and good fixed line growth in
Consumer and Business. The lower growth in Q3 was due to a strong
prior year comparative, reflecting an acceleration in customer data
usage during widespread power outages. We added 58,000 contract
customers in the quarter, and now have a total base of 6.8 million.
We added 2.9 million mobile prepaid customers in the quarter,
supported by our Big Data led customer value management
capabilities which offer personalised bundles to customers.
Financial services revenue grew by 3.9%*, driven by good demand for
our insurance services. Our 'VodaPay' super-app continued to gain
traction with 4.8 million registered users.
In Egypt, service revenue continued to grow strongly in the high
inflationary environment, reflecting good customer base growth,
increased data usage and good demand for our financial services
product, 'Vodafone Cash', which now has 7.5 million active users.
During the quarter, we added 123,000 mobile contract customers and
607,000 mobile prepaid customers, and we now have 47.8 million
customers.
In Vodacom's international markets, service revenue growth was
supported by a higher customer base, and strong M-Pesa and data
revenue growth. The reacceleration in quarterly trends was largely
driven by the DRC, which is benefitting from accelerated network
investment. M-Pesa revenue continued to grow strongly and now
represents 27.4% of service revenue. Our mobile customer base now
stands at 53.7 million and 62.3% of active customers use our data
services.
Turkey
Service revenue growth in Turkey was driven by continued customer
base management and ongoing repricing actions to reflect the high
inflationary environment. Despite a material devaluation in the
currency, service revenue also grew in euro terms during the
quarter. We maintained our good commercial momentum, adding 352,000
mobile contract customers during the quarter, including migrations
from prepaid customers.
Hyperinflationary accounting in Turkey
During the quarter, service revenue in Turkey increased by 90.4%*
(Q2: 85.0%*) due to ongoing repricing actions to reflect inflation.
Turkey was designated as a hyperinflationary economy on 1 April
2022 in line with IAS 29 'Financial Reporting in Hyperinflationary
Economies'. Organic growth metrics exclude the impact of the
hyperinflation adjustment in Turkey in the quarter.
Group service revenue growth excluding Turkey was 2.5%* (Q2:
2.8%*).
Additional resources
|
Topic
|
Link
|
|
Social Contract
|
investors.vodafone.com/social-contract
|
|
Digital services & outstanding experience
|
investors.vodafone.com/digital-services
|
|
Leading gigabit networks
|
investors.vodafone.com/vtbriefing
|
|
Vodafone Business
|
investors.vodafone.com/vbbriefing
|
|
Vantage Towers
|
vantagetowers.com
|
|
Vodacom
|
vodacom.com
|
|
ESG Reporting Suite
|
|
|
Board conversations
|
investors.vodafone.com/videos
|
|
ESG Addendum
|
investors.vodafone.com/esgaddendum
|
|
ESG A-Z
|
investors.vodafone.com/esga-z
|
|
TCFD
|
investors.vodafone.com/tcfd
|
|
SASB
|
investors.vodafone.com/sasb
|
Non-GAAP measures
In the discussion of the Group's reported operating results,
non-GAAP measures are presented to provide readers with additional
financial information that is regularly reviewed by management.
This additional information presented is not uniformly defined by
all companies including those in the Group's industry. Accordingly,
it may not be comparable with similarly titled measures and
disclosures by other companies. Additionally, certain information
presented is derived from amounts calculated in accordance with
IFRS but is not itself a measure defined under GAAP. Such measures
should not be viewed in isolation or as an alternative to the
equivalent GAAP measure. The non-GAAP measures discussed in this
document are listed below.
|
Non-GAAP measure
|
Defined on page
|
Closest equivalent GAAP measure
|
Reconciled on page
|
|
Performance metrics
|
|
|
|
|
Organic
revenue growth
|
Page
8
|
Revenue
|
Pages 9
and 10
|
|
Organic
service revenue growth
|
Page
8
|
Service
revenue
|
Pages 9
and 10
|
|
Organic
mobile service revenue growth
|
Page
8
|
Service
revenue
|
Pages 9
and 10
|
|
Organic
fixed service revenue growth
|
Page
8
|
Service
revenue
|
Pages 9
and 10
|
|
Organic
Group service revenue growth excluding Turkey
|
Page
8
|
Service
revenue
|
Pages 9
and 10
|
|
Organic
Vodafone Business service revenue growth
|
Page
8
|
Service
revenue
|
Pages 9
and 10
|
|
Organic
financial services revenue growth in South Africa
|
Page
8
|
Service
revenue
|
Page
9
|
Definition and use of organic growth measures
All amounts marked with an '*' in this document represent organic
growth which presents performance on a comparable basis, excluding
the impact of foreign exchange rates, mergers and acquisitions, the
hyperinflation adjustments in Turkey and other adjustments to
improve the comparability of results between periods.
Organic growth is calculated for revenue metrics, as
follows:
- Revenue
- Service
revenue;
- Mobile
service revenue;
- Fixed
service revenue;
- Group
service revenue excluding Turkey;
- Vodafone
Business service revenue; and
- Financial
services revenue in South Africa
Whilst organic growth is not intended to be a substitute for
reported growth, nor is it superior to reported growth, we believe
that the measure provides useful and necessary information to
investors and other interested parties for the following
reasons:
- It
provides additional information on underlying growth of the
business without the effect of certain factors unrelated to its
operating performance;
- It
is used for internal performance analysis; and
- It
facilitates comparability of underlying growth with other companies
(although the term "organic" is not a defined term under GAAP and
may not, therefore, be comparable with similarly titled measures
reported by other companies).
We have not provided a comparative in respect of organic growth
rates as the current rates describe the change between the
beginning and end of the current period, with such changes being
explained by the commentary in this document. If comparatives were
provided, significant sections of the commentary for prior periods
would also need to be included, reducing the usefulness and
transparency of this document.
|
|
|
|
Reported growth
|
M&A and Other
|
Foreign exchange
|
Organic growth*
|
|
|
Quarter ended 31 December 2023
|
Q3 FY24
|
Q3 FY23
|
|||||
|
€m
|
€m
|
%
|
pps
|
pps
|
%
|
||
|
Service revenue
|
|
|
|
|
|
|
|
|
Germany
|
2,892
|
2,882
|
0.3
|
-
|
-
|
0.3
|
|
|
|
Mobile service revenue
|
1,272
|
1,279
|
(0.5)
|
-
|
-
|
(0.5)
|
|
|
Fixed service revenue
|
1,620
|
1,603
|
1.1
|
(0.1)
|
-
|
1.0
|
|
UK
|
1,400
|
1,327
|
5.5
|
-
|
(0.3)
|
5.2
|
|
|
|
Mobile service revenue
|
1,034
|
977
|
5.8
|
-
|
(0.4)
|
5.4
|
|
|
Fixed service revenue
|
366
|
350
|
4.6
|
-
|
-
|
4.6
|
|
Italy
|
1,057
|
1,071
|
(1.3)
|
-
|
-
|
(1.3)
|
|
|
|
Mobile service revenue
|
714
|
750
|
(4.8)
|
-
|
-
|
(4.8)
|
|
|
Fixed service revenue
|
343
|
321
|
6.9
|
(0.1)
|
-
|
6.8
|
|
Spain
|
848
|
858
|
(1.2)
|
0.1
|
-
|
(1.1)
|
|
|
Other Europe1
|
1,175
|
1,275
|
(7.8)
|
12.4
|
(1.0)
|
3.6
|
|
|
Vodacom2
|
1,543
|
1,668
|
(7.5)
|
-
|
16.3
|
8.8
|
|
|
Other Markets1,2,3
|
393
|
368
|
6.8
|
19.5
|
64.1
|
90.4
|
|
|
Common Functions
|
137
|
134
|
|
|
|
|
|
|
Eliminations
|
(62)
|
(63)
|
|
|
|
|
|
|
Total service revenue
|
9,383
|
9,520
|
(1.4)
|
2.2
|
3.9
|
4.7
|
|
|
Other revenue
|
1,989
|
2,118
|
|
|
|
|
|
|
Revenue
|
11,372
|
11,638
|
(2.3)
|
2.5
|
4.0
|
4.2
|
|
|
|
|
|
|
|
|
|
|
|
Other growth metrics
|
|
|
|
|
|
|
|
|
Group service revenue excluding Turkey
|
8,996
|
9,193
|
(2.1)
|
2.1
|
2.5
|
2.5
|
|
|
Turkey - Service revenue
|
393
|
334
|
17.7
|
(10.7)
|
83.4
|
90.4
|
|
|
Vodafone Business - Service revenue
|
2,624
|
2,602
|
0.8
|
1.9
|
2.3
|
5.0
|
|
|
Germany - Vodafone Business service revenue
|
612
|
629
|
(2.7)
|
0.8
|
-
|
(1.9)
|
|
|
UK - Vodafone Business service revenue
|
540
|
508
|
6.3
|
-
|
(0.5)
|
5.8
|
|
|
Italy - Vodafone Business service revenue
|
389
|
363
|
7.2
|
0.3
|
-
|
7.5
|
|
|
Spain - Vodafone Business service revenue
|
292
|
285
|
2.5
|
(0.3)
|
-
|
2.2
|
|
|
Other Europe - Vodafone Business service revenue
|
375
|
380
|
(1.3)
|
9.7
|
(0.6)
|
7.8
|
|
|
South Africa - Financial services revenue
|
40
|
45
|
(11.1)
|
-
|
15.0
|
3.9
|
|
1.
Comparatives include the results of Vodafone Hungary and Vodafone
Ghana which were included in the Other Europe and Other Markets
segments, respectively, until their disposal. As previously
reported, Vodafone Hungary was sold in January 2023 and Vodafone
Ghana was sold in February 2023.
2.
From 1 April 2023, the Group revised its segmental reporting by
moving Vodafone Egypt from the Other Markets segment to the Vodacom
segment. This is the effective date on which the Group's reporting
structure changed to reflect the transfer of Vodafone Egypt to the
Vodacom Group. All comparatives for these two segments have been
re-presented on the new basis of segmental reporting. There is no
impact on previously reported Group metrics.
3.
The Other Markets segment comprises only Vodafone Turkey in
FY24.
|
|
|
|
Reported
growth
|
M&A and
Other
|
Foreign
exchange
|
Organic
growth*
|
|
|
Quarter ended 30 September 2023
|
Q2 FY24
|
Q2 FY23
|
|||||
|
€m
|
€m
|
%
|
pps
|
pps
|
%
|
||
|
Service revenue
|
|
|
|
|
|
|
|
|
Germany
|
2,903
|
2,873
|
1.0
|
0.1
|
-
|
1.1
|
|
|
|
Mobile service revenue
|
1,290
|
1,282
|
0.6
|
0.1
|
-
|
0.7
|
|
|
Fixed service revenue
|
1,613
|
1,591
|
1.4
|
-
|
-
|
1.4
|
|
UK
|
1,421
|
1,352
|
5.1
|
-
|
0.4
|
5.5
|
|
|
|
Mobile service revenue
|
1,057
|
1,000
|
5.7
|
-
|
0.4
|
6.1
|
|
|
Fixed service revenue
|
364
|
352
|
3.4
|
-
|
0.5
|
3.9
|
|
Italy
|
1,063
|
1,073
|
(0.9)
|
(0.1)
|
-
|
(1.0)
|
|
|
|
Mobile service revenue
|
729
|
762
|
(4.3)
|
(0.1)
|
-
|
(4.4)
|
|
|
Fixed service revenue
|
334
|
311
|
7.4
|
(0.1)
|
-
|
7.3
|
|
Spain
|
860
|
884
|
(2.7)
|
-
|
-
|
(2.7)
|
|
|
Other Europe1
|
1,205
|
1,298
|
(7.2)
|
12.1
|
(1.1)
|
3.8
|
|
|
Vodacom2
|
1,498
|
1,758
|
(14.8)
|
-
|
23.8
|
9.0
|
|
|
Other Markets1,2,3
|
495
|
407
|
21.6
|
(11.3)
|
74.7
|
85.0
|
|
|
Common Functions
|
151
|
140
|
|
|
|
|
|
|
Eliminations
|
(88)
|
(92)
|
|
|
|
|
|
|
Total service revenue
|
9,508
|
9,693
|
(1.9)
|
1.0
|
5.6
|
4.7
|
|
|
Other revenue
|
1,689
|
1,959
|
|
|
|
|
|
|
Revenue
|
11,197
|
11,652
|
(3.9)
|
1.2
|
5.5
|
2.8
|
|
|
|
|
|
|
|
|
|
|
|
Other growth metrics
|
|
|
|
|
|
|
|
|
Group service revenue excluding Turkey
|
9,023
|
9,344
|
(3.4)
|
2.1
|
4.1
|
2.8
|
|
|
Turkey - Service revenue
|
495
|
360
|
37.5
|
(41.8)
|
89.3
|
85.0
|
|
|
Vodafone Business - Service revenue
|
2,589
|
2,591
|
(0.1)
|
1.0
|
3.4
|
4.3
|
|
|
Germany - Vodafone Business service revenue
|
609
|
600
|
1.5
|
(0.5)
|
-
|
1.0
|
|
|
UK - Vodafone Business service revenue
|
531
|
517
|
2.7
|
-
|
0.5
|
3.2
|
|
|
Italy - Vodafone Business service revenue
|
379
|
352
|
7.7
|
(0.2)
|
-
|
7.5
|
|
|
Spain - Vodafone Business service revenue
|
276
|
280
|
(1.4)
|
0.2
|
-
|
(1.2)
|
|
|
Other Europe - Vodafone Business service revenue
|
365
|
376
|
(2.9)
|
9.2
|
(1.1)
|
5.2
|
|
Notes:
1.
Comparatives include the results of Vodafone Hungary and Vodafone
Ghana which were included in the Other Europe and Other Markets
segments, respectively, until their disposal. As previously
reported, Vodafone Hungary was sold in January 2023 and Vodafone
Ghana was sold in February 2023.
2.
From 1 April 2023, the Group revised its segmental reporting by
moving Vodafone Egypt from the Other Markets segment to the Vodacom
segment. This is the effective date on which the Group's reporting
structure changed to reflect the transfer of Vodafone Egypt to the
Vodacom Group. All comparatives for these two segments have been
re-presented on the new basis of segmental reporting. There is no
impact on previously reported Group metrics.
3.
The Other Markets segment comprises only Vodafone Turkey in
FY24.
Definitions
Key terms are defined below.
|
Term
|
Definition
|
|
Adjusted
EBITDAaL
|
Adjusted
EBITDAaL, which is a non-GAAP measure, is operating profit after
depreciation on lease-related right of use assets and interest on
lease liabilities but excluding depreciation, amortisation and
gains/losses on disposal of owned assets and excluding share of
results of equity accounted associates and joint ventures,
impairment losses/reversals, restructuring costs arising from
discrete restructuring plans, other income and expense and
significant items that are not considered by management to be
reflective of the underlying performance of the Group.
|
|
Adjusted
free cash flow ('Adjusted FCF')
|
Adjusted
free cash flow, which is a non-GAAP measure, is Free cash flow
before licences and spectrum, restructuring costs arising from
discrete restructuring plans, integration capital additions and
working capital related items, M&A and Vantage Towers growth
capital expenditure.
|
|
Africa
|
Comprises
the Vodacom Group and business in Egypt.
|
|
ARPU
|
Average
revenue per user, defined as customer revenue and incoming revenue
divided by average customers.
|
|
Common
Functions
|
Comprises
central teams and business functions.
|
|
Converged
customer
|
A
customer who receives fixed and mobile services (also known as
unified communications) on a single bill or who receives a discount
across both bills.
|
|
Eliminations
|
Refers
to the removal of intercompany transactions to derive the
consolidated financial statements.
|
|
Europe
|
Comprises
the Group's European businesses and the UK.
|
|
Financial
services revenue
|
Financial
services revenue includes fees generated from the provision of
advanced airtime, overdraft, financing and lending facilities, as
well as merchant payments and the sale of insurance products (e.g.
device insurance, life insurance and funeral cover).
|
|
Fixed
service revenue
|
Service
revenue (see below) relating to the provision of fixed line and
carrier services.
|
|
FWA
|
Fixed
Wireless Access.
|
|
GAAP
|
Generally
Accepted Accounting Principles.
|
|
IFRS
|
International
Financial Reporting Standards.
|
|
Internet
of Things ('IoT')
|
The
network of physical objects embedded with electronics, software,
sensors, and network connectivity, including built-in mobile SIM
cards, that enables these objects to collect data and exchange
communications with one another or a database.
|
|
MDU
|
Multi-Dwelling
Unit.
|
|
Mobile
service revenue
|
Service
revenue (see below) relating to the provision of mobile
services.
|
|
Other
Europe
|
Other
Europe comprises Portugal, Ireland, Greece, Romania, Czech Republic
and Albania. The prior period comparative results include Vodafone
Hungary which was disposed of in January 2023.
|
|
Other
Markets
|
Other
Markets comprises Turkey. From 1 April 2023, the Group
revised its segmental reporting by moving Vodafone Egypt from the
Other Markets segment to the Vodacom segment. This is the effective
date on which the Group's reporting structure changed to reflect
the transfer of Vodafone Egypt to the Vodacom Group. The prior
period comparative results include Vodafone Ghana which was
disposed of in February 2023.
|
|
Other
revenue
|
Other
revenue principally includes equipment revenue, interest income,
income from partner market arrangements and lease revenue,
including in respect of the lease out of passive tower
infrastructure.
|
|
Reported
growth
|
Reported
growth is based on amounts reported in euros and determined under
IFRS.
|
|
Revenue
|
The
total of Service revenue (defined below) and Other revenue (defined
above).
|
|
Roaming
|
Roaming:
allows customers to make calls, send and receive texts and data on
our and other operators' mobile networks, usually while travelling
abroad.
|
|
Service
revenue
|
Service
revenue is all revenue related to the provision of ongoing services
to the Group's Consumer and Business customers, together with
roaming revenue, revenue from incoming and outgoing network usage
by non-Vodafone customers and interconnect charges for incoming
calls.
|
|
SD-WAN
|
Software-Defined Wide Area Network.
|
|
SME
|
Small and Medium-sized Enterprises.
|
|
SoHo
|
Small office / Home office
|
|
Vodafone
Business
|
Vodafone Business supports organisations in a digital world. With
Vodafone's expertise in connectivity, our leading IoT platform and
our global scale, we deliver the results that organisations need to
progress and thrive. We support businesses of all sizes and
sectors.
|
Notes
1. References
to Vodafone are to Vodafone Group Plc and references to Vodafone
Group are to Vodafone Group Plc and its subsidiaries unless
otherwise stated. Vodafone, the Vodafone Speech Mark Devices,
Vodacom and Together we can are trade marks owned by Vodafone.
Other product and company names mentioned herein may be the trade
marks of their respective owners.
2. All
growth rates reflect a comparison to the quarter ended 31 December
2022 unless otherwise stated.
3. References
to "Q1", "Q2", "Q3" and "Q4" are to the three months ended 30 June,
30 September, 31 December and 31 March, respectively. References to
"H1" and "H2" are to the six month periods ended 30 September and
31 March, respectively. References to the "last year", "last
financial year" or "FY23" are to the financial year ended 31 March
2023. References to "FY24" are to the financial year ending 31
March 2024.
4. Vodacom
refers to the Group's interest in Vodacom Group Limited ('Vodacom')
as well as
its operations, including subsidiaries in South Africa, Egypt, DRC,
Tanzania, Mozambique and Lesotho.
5. This
document contains references to our and our affiliates' websites.
Information on any website is not incorporated into this update and
should not be considered part of this update.
Forward-looking
statements and other matters
This
document contains 'forward-looking statements' within the meaning
of the US Private Securities Litigation Reform Act of 1995 with
respect to the Group's financial condition, results of operations
and businesses and certain of the Group's plans and objectives. In
particular, such forward-looking statements include, but are not
limited to, statements with respect to: expectations regarding the
Group's financial condition or results of operations and the
guidance for Adjusted EBITDAaL and Adjusted free cash flow for the
financial year ending 31 March 2024; the announced agreement to
combine Vodafone UK and Three UK; the announced agreement to
dispose of Vodafone Spain; changes to German TV laws and the
migration of users to individual TV customer contracts;
expectations for the Group's future performance generally; the
transaction to purchase Nowo Communicatons; the timing for the
provision of hybrid 5G Mobile Private Network infrastructure to
SNAM; the Group's strategic partnership with Microsoft; the digital
transformation of the Group's business customers; the Group's
partnership with Data Communications Company in the UK;
expectations regarding the operating environment and market
conditions and trends, including customer usage, competitive
position and macroeconomic pressures, price trends and
opportunities in specific geographic markets; intentions and
expectations regarding the development, launch and expansion of
products, services and technologies, either introduced by Vodafone
or by Vodafone in conjunction with third parties or by third
parties independently; expectations regarding the integration or
performance of current and future investments, associates, joint
ventures, non-controlled interests and newly acquired businesses;
certain of the Group's plans and objectives, including the Group's
strategy.
Forward-looking
statements are sometimes but not always identified by their use of
a date in the future or such words as 'will', 'may', 'expects',
'plans', 'further', or 'ongoing'. By their nature, forward-looking
statements are inherently predictive, speculative and involve risk
and uncertainty because they relate to events and depend on
circumstances that will occur in the future. There are a number of
factors that could cause actual results and developments to differ
materially from those expressed or implied by these forward-looking
statements. These factors include, but are not limited to the
following: general economic and political conditions in the
jurisdictions in which the Group operates and changes to the
associated legal, regulatory and tax environments; increased
competition; levels of investment in network capacity and the
Group's ability to deploy view technologies, products and services;
evolving cyber threats to the Group's services and confidential
data; the Group's ability to embed responses to climate-related
risks into business strategy and operations; rapid changes to
existing products and services and the inability of new products
and services to perform in accordance with expectations; the
ability of the Group to integrate new technologies, products and
services with existing networks, technologies, products and
services; the Group's ability to generate and grow revenue; slower
than expected impact of new or existing products, services or
technologies on the Group's future revenue, cost structure and
capital expenditure outlays; slower than expected customer growth,
reduced customer retention, reductions or changes in customer
spending and increased pricing pressure; the Group's ability to
extend and expand its spectrum resources, to support ongoing growth
in customer demand for mobile data services; the Group's ability to
secure the timely delivery of high-quality products from suppliers;
loss of suppliers, disruption of supply chains and greater than
anticipated prices of new mobile handsets; changes in the costs to
the Group of, or the rates the Group may charge for, terminations
and roaming minutes; the impact of a failure or significant
interruption to the Group's telecommunications, networks, IT
systems or data protection systems; the Group's ability to realise
expected benefits from acquisitions, partnerships, joint ventures,
associates, franchises, brand licences, platform sharing or other
arrangements with third parties, including the signed agreement to
combine Vodafone's UK business with Three UK and the Group's
strategic partnership with Microsoft; acquisitions and divestments
of Group businesses and assets and the pursuit of new, unexpected
strategic opportunities; the Group's ability to integrate acquired
business or assets; the extent of any future write-downs or
impairment charges on the Group's assets, or restructuring charges
incurred as a result of an acquisition or disposition; developments
in the Group's financial condition, earnings and distributable
funds and other factors that the Board takes into account in
determining the level of dividends; the Group's ability to satisfy
working capital requirements; changes in foreign exchange rates;
changes in the regulatory framework in which the Group operates;
the impact of legal or other proceedings against the Group or other
companies in the communications industry; and changes in statutory
tax rates and profit mix, including the disposal of Vodafone
Spain.
A review of the reasons why actual results and
developments may differ materially from the expectations disclosed
or implied within forward-looking statements can be found in the
summary of our principal risks in the Group's Annual Report for the
year ended 31 March 2023. The Annual Report can be found on the
Vodafone Group's website (vodafone.com/ar2023).
All subsequent written or oral forward-looking statements
attributable to Vodafone or any member of the Vodafone Group or any
persons acting on their behalf are expressly qualified in their
entirety by the factors referred to above. No assurances can be
given that the forward-looking statements in this document will be
realised. Subject to compliance with applicable law and
regulations, Vodafone does not intend to update these
forward-looking statements and does not undertake any obligation to
do so.
Copyright © Vodafone Group
2024
-End-
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorised.
|
|
VODAFONE
GROUP
|
|
|
PUBLIC
LIMITED COMPANY
|
|
|
(Registrant)
|
|
|
|
|
|
|
|
Date:
February 05, 2024
|
By: /s/ M D B
|
|
|
Name: Maaike de Bie
|
|
|
Title: Group General Counsel and Company Secretary
|