Vodafone revenue rises as turnaround efforts start to show

May 20, 2025 10:06 AM

Vodafone’s fortunes appear to be shifting, with the telco giant reporting revenue growth and signs of recovery in previously underperforming markets such as Germany.

For the year ended 31 March 2025, Vodafone posted total revenues of €37.4 billion, up 2.0% year-over-year, while service revenue rose to €30.8 billion, up 2.8% on a reported basis and 5.1% organically.

The company also raised €13.3 billion in proceeds from the disposals of its Spanish and Italian operations, alongside a partial sale of its stake in Vantage Towers—moves that have significantly reshaped its portfolio and strengthened its balance sheet.

“Since I set out my plans to transform Vodafone two years ago, Vodafone has changed,” said Margherita Della Valle, chief executive of Vodafone Group.

“We have reshaped Europe, we are seeing the positive impact of our drive for customer satisfaction in all our markets – most noticeably in the UK and Germany – and we have delivered strong operational improvements across the business.”

Germany, Vodafone’s largest market, continues to face challenges. Revenues fell 5.0% in FY25, compared to a 6.4% drop the year before, with the company citing the impact of legal changes to bulk TV contracts in multi-dwelling units (MDUs).

Vodafone described the German business as a “turnaround market” and noted that it contributed 33% of group adjusted free cash flow and achieved its highest-ever customer satisfaction score.

The weaker performance in Germany was offset by solid growth elsewhere.

Vodafone’s operations in Africa, under the Vodacom brand, delivered 11.3% organic service revenue growth, while Türkiye posted a striking 83.4% rise in organic service revenue.

Della Valle acknowledged that further work remains, but said the company is now positioned for sustainable growth.

“Looking ahead, we expect to see broad-based momentum across Europe and Africa, and for Germany to return to top-line growth during this year. This is reflected in our guidance for profit and cash flow growth for the year ahead.”