Vodafone Group Reports Q3 Revenue Decline

Vodafone Group, a U.K.-based telecommunications company, experienced a decline in revenue for the third quarter due to the sale of its Hungarian unit. However, the company saw further growth in its business segment.

Shares of Vodafone Group were down 0.80% at 68.05 pence as of 0924 GMT. Over the past twelve months, shares have fallen by 25.4%.

For the quarter ended December 31, Vodafone Group reported a 2.3% decrease in group revenue to 11.37 billion euros ($12.27 billion) compared to the same period last year. However, on an organic basis, revenue increased by 4.2%. This decline in revenue is primarily attributed to the sale of Vodafone Hungary to 4iG Public Limited Company and Corvinus Zrt for 660 billion Hungarian forint ($1.85 billion) on January 31, 2023.

The company's service revenue, a key metric in the telecom sector, fell to EUR9.38 billion from EUR9.52 billion. Italy and Spain experienced declines of 1.3% and 1.2% respectively, while the U.K. saw a 5.2% increase and other European countries grew by 3.6% to reach EUR1.175 billion. Germany's service revenue increased by 0.3% to EUR2.89 billion, and Turkey saw a rise in service revenue to EUR393 million.

Vodafone Business, the company's business segment, witnessed a 5% growth in service revenue, driven by strong performance in digital services.

Looking ahead, Vodafone reiterated its fiscal 2024 outlook, stating that adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) and after leases are expected to be broadly flat at around EUR13.3 billion, while adjusted free cash flow is projected to be around EUR3.3 billion.

Group Chief Executive Margherita Della Valle commented, "We've made good strategic progress in the first nine months of the year, with improving customer satisfaction and three consecutive quarters of service revenue growth in Europe. Our announced transactions in the U.K. and Spain are progressing well, and we are in active discussions in Italy."

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