Earnings Alerts

Vodafone (VOD) Earnings: 3Q Service Revenue Surpasses Estimates with Strong Organic Growth

By February 4, 2025 No Comments
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  • Vodafone‘s service revenue for 3Q exceeded expectations, coming in at €7.93 billion against the estimate of €7.63 billion.
  • UK service revenue surpassed forecasts, with a total of €1.51 billion compared to the estimated €1.48 billion.
  • Germany’s service revenue was slightly below expectations at €2.71 billion, with an estimate of €2.73 billion.
  • Revenue from other European markets matched estimates at €1.20 billion against an expected €1.19 billion.
  • Africa’s service revenue was reported at €1.61 billion, with no direct estimate for comparison.
  • Vodafone‘s overall organic service revenue growth was 5.2%, beating the forecast of 4.21%.
  • Germany saw a decrease in organic service revenue by 6.4%, which was worse than the estimated decline of 5.34%.
  • The UK recorded a positive organic service revenue growth of 3.3%, surpassing the estimated 1.45%.
  • Other European markets recorded a 2.6% organic service revenue growth, compared to dual estimates of 1.78%.
  • Africa showed a strong organic service revenue increase of 11.6%.
  • Vodafone maintained its guidance for FY25, aiming for Group Adjusted EBITDAaL of approximately €11 billion and free cash flow of at least €2.4 billion.
  • The company anticipates increased momentum in migration within upcoming quarters, targeting full effect by H2 FY26.
  • Market sentiment towards Vodafone is mixed, with 9 buy recommendations, 10 holds, and 2 sells noted.

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A look at Vodafone Smart Scores

FactorScoreMagnitude
Value5
Dividend5
Growth4
Resilience2
Momentum3
OVERALL SMART SCORE3.8

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

Based on the Smartkarma Smart Scores, Vodafone Group PLC shows a promising long-term outlook. With top scores in both Value and Dividend factors, Vodafone is deemed strong in terms of its financial health and ability to provide consistent returns to investors. Additionally, scoring well in Growth indicates potential for expansion and enhancement in the coming years.

However, the company’s lower scores in Resilience and Momentum suggest areas of improvement needed to navigate challenges and maintain market competitiveness. Despite these lower scores, Vodafone‘s established presence in various global markets through its subsidiaries positions it as a significant player in the mobile telecommunications industry, making it an interesting prospect for investors looking for stable returns.


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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