Vodafone grows Q1 revenues despite slowdown in Europe

25th Jul 2024 07:23

(Sharecast News) - Telecoms giant Vodafone has reiterated its full-year guidance after an in-line first-quarter performance, as strong revenue increases in Africa and Turkey made up for slowing growth in Europe and falling sales in Germany.

Total revenues were €9.04bn in the three months to 31 March, up from €8.79bn the year before, with services revenues rising to €7.47bn from €7.24bn.

In Germany, which accounts for 37% of group service sales, total revenues were down 1.7% at €3.10bn with service revenues falling 1.5%, which the company blamed on the ongoing impact of a TV law change, which give consumers the right to opt out of TV contracts bundled into rental leases. Excluding this impact, service revenues in Germany would have been down just 0.3%.

Across the rest of Europe and the UK, the company said it saw growth ease from the fourth quarter due to slowing inflation. UK services revenues, which account for 19% of the group total, increased by just 2.0% in the first quarter to €1.43bn, down from 6.8% growth in the fourth and 5.5% in the third.

Over in Turkey, service revenues surged 54.7% year-on-year to €515m, while in Africa service revenues were up 1.6% at €1.45bn.

Group adjusted EBITDA totalled €2.68bn in the first quarter, up from €2.63bn a year earlier, driven by lower cost inflation and the phasing of operational expenditure.

For the full year, Vodafone said it still expects to generated adjusted EBITDA of €11bn and adjusted free cash flow of at least €2.4bn.