Vodafone PLC grows revenues again as roaming income rebounds

Vodafone PLC () said call revenues in the last quarter increased with both the consumer and business arms improving.

Service revenues in the three months to end June 2021, its fiscal first quarter, rose 3.1% to €9.39bn, including one-off growth of around 1 percentage point following Coronavirus (COVID-19) disruption last year. The increase reflected growth in Europe and Africa, the mobile phone giant said. Total revenues rose 5.7% as handset sales recovered from the disruption caused by COVID-19. 

Roaming and visitor revenue rebounded 54% but is still less than half the level of two years ago.

Nick Read, chief executive, said: “I am pleased to report that we are back to service revenue growth in Europe, as well as Africa. This growth was broad-based within both consumer and business segments, with the vast majority of our markets contributing.

In its key European markets, Germany, the group’s largest area of operation, saw service revenue rise 1.4%, the UK by 2.5% and Spain by 0.8% while the decline in Italy slowed to 3.6% from 7.8% a year earlier.

Shares in FTSE 100 group have slumped 20% since its last trading update revealed profits undershooting expectations and that spending on its network would increase to improve efficiency, speed and connectivity.

Investors were worried about the performance in Germany and how the increased investment would impact the dividend, said analysts.

Read reiterated that the group is on track to deliver its March 2022 guidance of underlying profits between €15 – €15.4bn and adjusted free cash flow of at least €5.2bn

“In May we announced, for the first time, our medium-term growth ambition. We have entered the year in line with this ambition, on track to deliver our guidance for the year, and with a continued focus to optimise our portfolio, to accelerate the delivery of shareholder value,” he said.


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