Vodafone Swings to Pretax Profit on Revenue Growth

By Najat Kantouar

Vodafone Group swung to pretax profit for fiscal 2026 after reporting higher service revenue, supported by growth across its key regions except in Germany.

The U.K. telecommunications company said Tuesday that pretax profit was 1.86 billion euros ($2.19 billion) for the year ended March 31 compared with a loss of 1.48 billion euros for the same period a year earlier, when it booked noncash impairment charges for Germany and Romania of 4.5 billion euros.

Adjusted earnings before interest, taxes, depreciation and amortization and after lease expenses increased to 11.35 billion euros from 10.93 billion euros.

Revenue rose to 40.46 billion euros from 37.45 billion euros, driven by strong service revenue growth and the consolidation of Three UK, which was partially offset by foreign-exchange movements, it said.

Meanwhile, service revenue--a closely watched metric in the telecom industry--grew 8.8% on a reported basis to 33.48 billion euros. The increase reflected growth in all its divisions except Germany, where organic service revenue declined 0.2% due to a highly competitive market and the final impact of a television law change.

Analysts had forecast revenue of 40.42 billion euros and adjusted Ebitdaal of 11.48 billion euros, according to a company-compiled consensus.

Looking ahead, Vodafone expects adjusted Ebitdaal in the range of 11.9 billion euros to 12.2 billion euros and adjusted free cash flow between 2.6 billion euros and 2.9 billion euros for fiscal 2027.

Write to Najat Kantouar at [e-mail]

(END) Dow Jones Newswires

05-12-26 0307ET