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Vodafone Lifts Dividend for First Time in Eight Years as Outlook Raised After Three UK Tie-Up

Upgraded targets reflect merger scale, early savings, clearer cash returns, lifting the shares.

Overview

  • Group revenue rose 7.3% to €19.6bn, largely from adding Three’s results, with Germany back to growth and the UK up 1.2%.
  • Management now guides to the top end of ranges for adjusted core earnings (€11.3bn–€11.6bn) and free cash flow (€2.4bn–€2.6bn) this year.
  • The board introduced a progressive policy with a 2.5% dividend increase for the year and an interim payout of 2.25 eurocents per share.
  • Vodafone announced a €500m share buyback and is accelerating integration to target about £700m in annual cost synergies, steps expected to involve restructuring and job reductions.
  • CEO Margherita Della Valle said the UK Budget is “not a big thing” for Vodafone, citing momentum in the home market, as the shares gained about 5%.