German TV customer losses hit Vodafone
2024.11.12 03:32
LONDON (Reuters) -Mobile operator Vodafone (NASDAQ:) said on Tuesday it was on track to meet its full-year forecasts despite losing customers in Germany, its biggest market.
The British group reported first-half service revenue of 15.1 billion euros ($16.06 billion), a 4.8% increase on an organic basis and slightly ahead of expectations, and a 3.8% rise in adjusted core earnings to 5.4 billion euros, in line with market consensus.
Vodafone’s performance in Germany fell sharply in the second quarter, down 6.2% compared with a 1.5% fall in the first quarter. The company has been hit by a change in the law in the country to end the selling of TV in bulk to apartment blocks.
Chief Executive Margherita Della Valle said she was investing in Germany to strengthen its market position and expand its business-to-business capabilities.
Vodafone said the slowdown in Germany was offset by growth in other European markets, Turkey and Africa.
“We delivered good performances across our markets, with the exception of Germany, where we have been impacted as expected by the TV law change,” Della Valle said.
“I am confident that the actions we are taking will deliver growth for Vodafone this year and a further acceleration into FY26.”
Vodafone reiterated its guidance to produce core earnings of around 11 billion euros and adjusted free cash flow of at least 2.4 billion euros for the full year.
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