Seldom has a corporate turnaround attracted such sustained scrutiny as Vodafone's multi-year restructuring effort. On 27 July 2026, the British telecommunications group reported first-quarter revenue of €10.3 billion, marking a 9.7% increase. Organic service revenue growth reached 5.2%, with all business segments contributing positively. The results prompted management to raise its full-year guidance, signalling renewed confidence in the company's trajectory.
Adjusted cash profit, measured by EBITDAaL, rose 6.2% organically to €2.9 billion. Margins expanded by 0.6 percentage points, reaching 28.5%. Vodafone now anticipates full-year adjusted cash profit of €13.0 to €13.3 billion. Free cash flow projections were similarly upgraded to between €2.6 and €2.9 billion. Crucially, management expects performance at the upper end of both ranges.
The upgraded outlook stems partly from the consolidation of Safaricom, Kenya's dominant mobile operator. Vodacom, Vodafone's African subsidiary, completed its acquisition of an effective 20% stake in Safaricom in June. This transaction elevated the group's total shareholding to 55%, enabling full consolidation from July 2026. Safaricom is projected to contribute approximately €1.1 billion in adjusted cash profit over nine months.
Equally significant is the ongoing integration of VodafoneThree, Britain's largest mobile operator by subscriber count. The merger, completed in May 2025, has already yielded tangible synergies and network improvements. Fifth-generation download speeds have improved by approximately 50%, now covering around 70% of the UK population. Vodafone anticipates roughly £700 million in annual cost savings by 2030, underscoring the strategic rationale.
Notwithstanding these encouraging developments, execution risks persist. Restructuring costs are expected to peak at around €700 million this fiscal year. Furthermore, macroeconomic headwinds, particularly foreign exchange volatility, could erode profitability. Nevertheless, the share price surged approximately 4% following the announcement, suggesting that investors are increasingly endorsing Della Valle's disciplined approach to portfolio optimisation.
