Vodafone‘s Q1 Performance: Key Highlights
- Vodafone‘s organic service revenue rose by 5.4%, exceeding the 4.46% estimate.
- Overall service revenue reached EU7.47 billion, surpassing the EU7.36 billion estimate.
- UK service revenue was EU1.43 billion, up 2% year-over-year, but slightly below the EU1.44 billion estimate.
- Germany’s service revenue stood at EU2.78 billion, showing a 1.5% year-over-year decline, matching the EU2.78 billion estimate.
- Other Europe’s service revenue amounted to EU1.18 billion, with a 1.6% year-over-year increase, meeting the estimate.
- In Germany, organic service revenue declined by 1.5%, slightly worse than the 1.47% estimate.
- Other Europe reported a 2.3% rise in organic service revenue, beating the 1.99% estimate.
- Africa’s service revenue hit EU1.45 billion, driven by a 10% rise in organic service revenue.
2025 Year Forecast
- Vodafone maintains an adjusted EBITDA after leases at around EU11 billion, close to the EU11.07 billion estimate.
- The company still expects adjusted free cash flow to be at least EU2.4 billion.
Other Comments
- Vodafone reiterates its FY24 guidance.
- An anticipated decline in Germany’s service revenue was linked to ongoing impacts from the TV law change.
Analyst Recommendations
- 11 analysts recommend buying Vodafone shares.
- 8 analysts suggest holding the shares.
- 2 analysts advise selling the shares.
Vodafone on Smartkarma
Analysts on Smartkarma, like Baptista Research, are closely monitoring Vodafone Group’s performance. According to Baptista Research‘s report titled “Vodafone Group: Are Its Efforts Towards Optimizing Working Capital Paying Off? – Major Drivers,” Vodafone is putting emphasis on customer-centric strategies, streamlining its operations, and driving growth. The company’s operational review has led to a shift in its commercial model and an agreement with Accenture to accelerate its transformation. Notably, Vodafone has made significant progress in improving its Net Promoter Score (NPS), indicating enhanced customer satisfaction compared to its rivals across various markets.
A look at Vodafone Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 5 | |
| Dividend | 5 | |
| Growth | 3 | |
| Resilience | 2 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.6 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
With a strong Smartkarma Smart Score of 5 for both Value and Dividend, Vodafone Group PLC seems to be a promising long-term investment. The company’s solid value and dividend scores indicate that it may offer attractive financial returns to investors over time. However, Vodafone‘s slightly lower scores in Growth, Resilience, and Momentum suggest that while it may not be the fastest-growing or most resilient company in the telecommunications sector, its value and dividend-paying potential could make it an interesting choice for those seeking stable returns.
As a mobile telecommunications company operating across various regions, including Continental Europe, the United Kingdom, and Asia Pacific, Vodafone Group PLC has established itself as a key player in the industry. With a strong presence in voice and data communications, the company’s wide geographical footprint through its subsidiaries, associates, and investments positions it well for capturing opportunities in diverse markets. Investors looking for a company with solid value and dividend prospects may find Vodafone an appealing option based on the Smartkarma Smart Scores provided.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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