LONDON (dpa-AFX) - Vodafone Group Plc (VOD.L, VOD), on Thursday, reported Q1 revenue of €9.0 billion, up 2.8% from last year, as higher organic service revenue was partially offset by adverse foreign exchange movements.
Operating profit increased by 42.9% to €1.5 billion, primarily driven by a €0.7 billion gain on the disposal of an 18% stake in Indus Towers, leaving Vodafone with a 3.1% shareholding.
Group service revenue grew by 5.4%, with continuing strong growth in Turkey and Africa, while service revenue in Germany decreased by 1.5% primarily due to the impact of the MDU TV law change. Excluding this impact, service revenue in Germany declined by 0.3%, largely due to the lapping of prior year price increases and project phasing in Business.
Vodafone Business service revenue rose by 2.6%, with project phasing in Germany and Other Europe impacting trends. However, the company expects this to normalise throughout the rest of FY25. Service revenue growth in Africa remained strong at 10.0%, supported by price increases in South Africa and continued good commercial momentum in Egypt.
Margherita Della Valle, Group Chief Executive, said, 'Our performance in the first quarter is consistent with our full year guidance, which we reiterate today. We continue to deliver strong revenue growth in Africa and Turkey, whilst lower inflation is slowing revenue growth in Europe and accelerating Group EBITDAaL growth. Service revenue for the Group grew 5.4%, although in Germany we saw an expected service revenue decline, following the ongoing impact of the TV law change.'
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