Vodafone group relies on Turkey and Egypt for growth

Vodafone group grew its revenues in the second quarter of 2024 by 2.8% to €9 billion on the back of service revenues that grew by 5.4% when adjusted for adjustments. However Germany, which accounts for over a third of the group’s service revenues, saw its own decline by 1.5%, thanks mainly to a law change coming into effect that prohibits German housing associations from bundling television services and broadband into leases for multiple dwelling units from the start of this month.

It fell to a couple of smaller territories to pick up the slack. Tukey only accounts for 7% of group services revenues but saw an increase of 25% when adjusted for hyperinflation. Meanwhile Egypt, which accounts for 4% of service revenues and seems to have inflation under control, grew by 43.6%.

“Our performance in the first quarter is consistent with our full year guidance, which we reiterate today,” said Group Chief Exec Margherita Della Valle. “We continue to deliver strong revenue growth in Africa and Turkey, whilst lower inflation is slowing revenue growth in Europe and accelerating Group EBITDAaL growth. Service revenue for the Group grew 5.4%, although in Germany we saw an expected service revenue decline, following the ongoing impact of the TV law change.

“During the last few months, we have announced the final step in reducing our stake in Vantage Towers to 50% for €1.3 billion and commenced our €2 billion share buyback programme following the sale of Spain. We continue to progress our transactions in Italy and the UK as well as the broader transformation of Vodafone, focused on customer experience, Business growth and operational execution in Germany. The actions we are taking now will deliver improved performance and underpin the turnaround of Vodafone.”