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Vodafone Lifts Guidance, Raises Dividend and Launches €500 Million Buyback as Three UK Deal Delivers

Merger gains in the UK alongside a German rebound underpin the stronger outlook.

Overview

  • The company now expects to hit the upper end of full-year guidance for adjusted core earnings of €11.3–€11.6 billion and adjusted free cash flow of €2.4–€2.6 billion.
  • Vodafone introduced a progressive dividend policy with a 2.5% increase for this financial year, setting the interim dividend at 2.25 eurocents per share.
  • A share repurchase programme of up to €500 million has been announced.
  • Integration of Three UK is driving cost savings through property consolidation and contract rationalisation, with targeted synergies of about £700 million a year and job cuts widely expected.
  • First-half revenue rose 7.3% to €19.6 billion and adjusted earnings increased 5.9% to about €5.7 billion, with Germany returning to growth and UK service revenue up roughly 1–1.2%.