Financial Data and Key Metrics Changes - Group service revenue grew by 5.4% in Q3 2026, supported by growth in Europe and Africa, particularly in Germany, Africa, and Turkey [4][6] - Group EBITDA increased by 2.3% in Q3 and 5.3% year-to-date, aligning with expectations and guidance for FY26 [4][8] Business Line Data and Key Metrics Changes - In Germany, mobile customer numbers increased, with new customer ARPUs up 21% year-on-year, stabilizing consumer broadband revenues [5][6] - The U.K. integration and network investment plan is progressing well, with initial upgrades delivered ahead of schedule [5][6] - The acquisition of Skaylink was completed, supporting growth in digital services across cloud and security [7] Market Data and Key Metrics Changes - The company is acquiring a controlling stake in Safaricom, enhancing its position in Africa amid growing demand for digital services [6][7] - Emerging markets continue to show double-digit growth, while the U.K. faces a challenging competitive environment [30][32] Company Strategy and Development Direction - Vodafone is focused on enhancing customer experience and value strategy, particularly in Germany, where it aims to improve EBITDA through cost simplification and B2B growth [14][15] - The company is committed to a 10-year plan to invest GBP 11 billion in building the U.K.'s leading 5G network [6][7] - The strategy emphasizes value over volume, encouraging a shift in how telecom performance is evaluated [75][76] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the upper end of FY26 guidance, with a positive outlook for multi-year growth trajectory [8][32] - The competitive landscape in Germany remains challenging, but improvements in fixed broadband and customer experience are expected to support future performance [16][24] Other Important Information - The company is optimistic about the potential for consolidation in the U.K. broadband market, which could enhance pricing power [45][46] - The EU Digital Networks Act and Cybersecurity Act are seen as potential catalysts for investment and innovation, though they also introduce uncertainties [81][84] Q&A Session Summary Question: Insights on Germany's EBITDA trajectory - Management indicated that EBITDA in Germany is expected to improve in the second half of the year, but not return to positive growth [12][14] Question: Value versus volume strategy in broadband - Management confirmed a focus on value, with fixed broadband churn below many European markets and improvements in customer satisfaction [23][24] Question: Group-wide growth prospects for 2027 - Management remains confident in multi-year growth for adjusted free cash flow and EBITDA, with expectations for cost synergies in the U.K. [32][33] Question: Opportunities in Africa post-Safaricom acquisition - The acquisition is expected to strengthen Vodafone's position in Africa, leveraging growth in population and demand for digital services [38][39] Question: Impact of potential consolidation in the U.K. broadband market - Management is pleased with Vodafone's current position and believes that consolidation could enhance market dynamics without negatively impacting their strategy [45][46] Question: Future of Fixed Wireless Access (FWA) - Management expects FWA to grow in the U.K. and sees potential for deployment in rural areas of Germany, though fiber remains the primary focus [50][52] Question: Thoughts on tower market and Vantage - Management is satisfied with Vantage's performance and is open to evaluating future opportunities in the tower market as it evolves [58][59] Question: Insights on the EU Digital Networks Act - Management views the proposed reforms as a potential positive for investment certainty, though there are concerns regarding the Cybersecurity Act [81][84]

Financial Data and Key Metrics Changes - Group service revenue grew by 5.4% in Q3 2026, supported by growth in Europe and Africa, particularly in Germany, Africa, and Turkey [3][4] - Group EBITDA increased by 2.3% in Q3 and 5.3% year-to-date, aligning with expectations and guidance for FY26 [3][4] Business Line Data and Key Metrics Changes - In Germany, mobile customer numbers increased, with new customer ARPUs up 21% year-on-year, stabilizing consumer broadband revenues [4][6] - The U.K. integration and network investment plan is progressing well, with initial upgrades delivered ahead of schedule [4][5] - The acquisition of Skaylink supports growth in digital services, particularly in cloud and security [6] Market Data and Key Metrics Changes - Emerging markets continue to show double-digit growth, contributing positively to overall service revenue [29] - The competitive landscape in the U.K. is evolving, with potential consolidation among operators, which may impact pricing and competition [42] Company Strategy and Development Direction - Vodafone is focused on enhancing customer experience and value strategy, particularly in Germany and the U.K. [4][5] - The company is investing GBP 11 billion over ten years to build the leading 5G network in the U.K. [5] - The acquisition of a controlling stake in Safaricom is expected to strengthen Vodafone's position in Africa, leveraging growth opportunities in digital services [6][38] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the multi-year growth trajectory, with expectations for continued good growth in EBITDA and adjusted free cash flow [31][32] - The company is navigating a competitive market environment but is confident in its strategic initiatives and operational progress [6][7] Other Important Information - The company is seeing improvements in Net Promoter Scores and is focused on reducing complexity while accelerating opportunities in digital and financial services [6] - The EU Digital Networks Act and Cybersecurity Act are under review, with potential implications for investment and innovation in the telecom sector [77][78] Q&A Session Summary Question: Insights on Germany's EBITDA trajectory - Management expects EBITDA performance in Germany to improve in the second half of the year, but does not anticipate a return to positive EBITDA this year [12][14] Question: Clarification on broadband strategy and pricing actions - The focus is on value over volume, with recent price increases expected to stabilize broadband losses and improve ARPU [21][25] Question: Group-wide growth prospects for 2027 and beyond - Management is confident in the multi-year outlook for adjusted free cash flow growth, with continued good growth expected for the group overall [31][32] Question: Impact of potential consolidation in the UK broadband market - Management believes consolidation could make sense in the current environment but is pleased with Vodafone's multi-partner approach in the UK [42][43] Question: Opportunities in Africa following the Safaricom acquisition - The acquisition is seen as a strategic move to leverage growth opportunities in Africa, particularly in digital services and financial technology [38][39] Question: Thoughts on tower market dynamics and Vantage - Management is satisfied with the current position in Vantage and is monitoring market trends for potential consolidation opportunities [56][57] Question: Discussion on Fixed Wireless Access (FWA) growth - Management expects FWA to continue to grow in the UK, with seasonal factors impacting recent performance [48][49] Question: Comments on the EU Digital Networks Act and Cybersecurity Act - Management is cautiously optimistic about potential reforms but acknowledges the uncertainty surrounding the Cybersecurity Act [78][79]

Core Viewpoint - The company's shares declined following a revenue report that fell short of market expectations, primarily due to underperformance in Turkey [1] Group 1 - The company's revenue missed market expectations [1] - Poor performance in Turkey significantly impacted the overall revenue results [1]

Q3 FY26 Trading Update February 2026 Q3 FY26 Trading Update ⫶ February 2026 1 Highlights | Group Q3 service revenue | +5.4% | | | | | --- | --- | --- | --- | --- | | Service revenue growth in Europe & Africa | | | | | | Europe Q3 service revenue | +0.4% | | | | | Group Q3 Adj. EBITDAaL | +2.3% | | | | | Germany Q3 service revenue | +0.7% | | | | | Continued service revenue growth in Germany | | | | | | Fixed line service revenue improvement | +1.2pp | | | | | 1&1 customers using our network | >12m | | | | | ...

Core Viewpoint - Vodafone's Q3 revenue for FY2026 showed growth, but disappointing performance in its largest market, Germany, led to a significant drop in stock price, marking the largest decline in a year [1][4]. Group 1: Financial Performance - Q3 total revenue reached €10.5 billion, a 6.5% year-on-year increase, driven by service revenue growth and contributions from the integration of Three UK and Telekom Romania [1]. - Group service revenue grew by 7.3% year-on-year to €8.5 billion, with organic growth of 5.4%, slightly lower than the previous quarter [1]. - EBITDAaL adjusted for leases grew organically by 2.3% to €2.8 billion for the quarter, with a cumulative growth of 5.3% to €8.5 billion for FY2026, aligning with the company's performance expectations [4]. Group 2: Market Performance - The African market remains a core growth engine, with service revenue achieving 13.5% organic growth for the second consecutive quarter [1]. - The UK market experienced a 0.5% organic decline in service revenue, primarily due to a one-time project impact from the previous year [1]. - In Germany, service revenue grew modestly by 0.7% to €2.7 billion, falling short of market expectations for a stronger rebound [3]. Group 3: Strategic Initiatives - Vodafone's CEO, Margherita Della Valle, has been implementing a business revitalization plan focused on streamlining operations and divesting assets, which has received analyst approval [4]. - The company has completed divestitures in Italy and Spain and merged with Three UK in the UK market [4]. - Vodafone reiterated its FY2026 performance outlook, expecting adjusted EBITDA to be between €11.3 billion and €11.6 billion, and free cash flow to be between €2.4 billion and €2.6 billion [5].

Core Viewpoint - Vodafone's share price is experiencing a bull market as Margherita Della Valle's turnaround strategy begins to yield positive results [1] Group 1 - Vodafone's share price increased to a high of 116p this week [1] - The share price has risen by over 110% from its lowest level in 2024 [1]

Core Insights - Vodafone reported that top-line growth in Germany, along with strong contributions from Turkey and Africa, has kept the company on track to meet its full-year earnings and cash flow targets [1] Group 1 - Vodafone's growth in Germany has been a significant factor in its overall performance [1] - The contributions from Turkey and Africa have also played a crucial role in supporting Vodafone's financial outlook [1]

By the end of the session, the benchmarks had pared some losses, with the Sensex down 296.59 points or 0.36% at 82,269.78, while the Nifty fell 98 points or 0.39% to end at 25,320.65.Here's how analysts read the market pulse:Indian equity markets remained volatile ahead of the Union Budget, with benchmark indices dragged lower by weakness in “With geopolitical risks and global tariff pressures rising, the Union Budget is keenly awaited for cues on growth support and fiscal discipline. Globally, although a ...

The FTSE 100 Index continued its rally this week and was hovering near its all-time high as market participants reacted to the key earnings by some American companies and Lloyds Bank. Shell and other energy companies are benefiting from the ongoing crude oil price rally because of rising tensions in the Middle East now that Trump has sent a large armada to the region and Iran has warned of a prolonged fight. It was trading at £10,170, a few points below the all-time high of £10,240. This article explores so ...

Core Thesis - Vodafone Group Public Limited Company is perceived as a low-growth telecom company despite having significant asset value, including a 45% stake in tower and infrastructure assets worth approximately $10 billion [2] Valuation and Market Perception - Vodafone's share price was $13.18 as of January 13, with trailing and forward P/E ratios of 20.37 and 37.45 respectively [1] - The market continues to price Vodafone as a "boring" income stock, with a stock price of 96p as of December 23, 2025, reflecting no credible growth options [3] Growth Opportunities - Vodafone's exposure to AST SpaceMobile and its European joint venture, Sat-co, could represent significant growth potential, which is largely ignored in current valuations [3][4] - AST SpaceMobile's equity has increased significantly, now exceeding Vodafone's market capitalization, with Vodafone holding 14.5 million shares worth approximately $1.2 billion [4] Strategic Importance of Sat-co - Sat-co aims to provide direct-to-device broadband and voice connectivity across Europe using AST's LEO satellites, which could eliminate coverage gaps without new hardware [4] - Full European coverage is expected by the end of 2026, with interest from mobile operators in 21 EU countries [5] - The strategic importance of Sat-co is enhanced by upcoming European S-band spectrum allocation and rising defense spending, positioning Vodafone favorably against competitors like Starlink [6] Financial Impact - If Sat-co generates over €1 billion in incremental EBITDA for Vodafone, it could significantly improve earnings growth, quality, and free cash flow, potentially leading to a re-rating of Vodafone's valuation multiples [6]