Vodafone Upgrades Profit Outlook as Germany Returns to Growth

Vodafone has revised its full-year financial outlook upward after reporting a strong rebound in Germany, its largest market. The company now expects adjusted core earnings of between €11.3 billion and €11.6 billion, alongside free cash flow of approximately €2.4 billion to €2.6 billion. This positive revision follows a period of revenue decline in Germany, with the latest results showing a return to top-line growth.

The company’s turnaround strategy, led by CEO Margherita Della Valle, has focused on consolidating operations in the UK, exiting non-core markets, and strengthening its presence in Europe and Africa. Growth in Germany was complemented by improved service revenues in the UK, Turkey, and Africa, providing a solid foundation for the upgraded outlook. Vodafone also announced an increase in its dividend for the first time in eight years, reflecting confidence in cash generation and financial stability.

The upgraded guidance demonstrates that Vodafone’s restructuring efforts are bearing fruit, particularly in addressing previous weaknesses in Germany. The return to growth in this key market validates the company’s strategic focus on core operations and positions it well for sustained performance. The dividend increase signals that management believes the company can now reward shareholders while continuing to invest in infrastructure and service quality.

For emerging markets, including Africa and Nigeria, Vodafone’s performance provides insight into effective telecom management. Prioritising core markets, maintaining operational efficiency, and aligning strategic investments with shareholder returns can offer a blueprint for sustainable growth. Moving forward, Vodafone faces the challenge of maintaining momentum, managing competitive pressures, and ensuring consistent delivery against its optimistic guidance while balancing investment and shareholder expectations.