Vodafone Group Plc has released its half-year report for FY24, showing improved revenue growth in most markets and a return to growth in Germany in the second quarter. The company's transformation is progressing, with a focus on customers and simplifying the business. Vodafone has also announced transactions to strengthen its position in the UK and exit the challenging Spanish market.
In terms of financial results, group service revenue grew by 4.2% in H1 FY24, or 2.3% excluding Turkey. Both Europe and Africa saw growth in service revenue. Germany showed improvement, with a growth of 1.1% in the second quarter. Vodafone Business also saw continued acceleration with 4.4% growth in H1 FY24.
Group revenue declined by 4.3% to €21.9 billion due to adverse foreign exchange rate movements and the disposal of Vantage Towers, Vodafone Hungary, and Vodafone Ghana in the prior financial year. Operating profit decreased by 44.2% to €1.7 billion, reflecting business disposals, adverse foreign exchange rate movements, and lower share of results of associates and joint ventures. Adjusted EBITDAaL grew by 0.3% despite a significant increase in energy costs.
Vodafone announced a merger in the UK and the sale of Vodafone Spain as part of its efforts to right-size the company for growth. The company reiterated its FY24 guidance, with Adjusted EBITDAaL expected to be "broadly flat" at around €13.3 billion and Adjusted free cash flow to be "around" €3.3 billion. The interim dividend per share is 4.5 eurocents.
Overall, Vodafone's half-year report shows progress in revenue growth and strategic initiatives, although there are still challenges ahead. The company is focused on simplifying its business and strengthening its position in key markets.