Vodafone’s growth slows in Q1 on decline in Germany

LONDON (Reuters) -Vodafone reported a 5.4% rise in service revenue in the first quarter, a slowdown on the previous three quarters, after its biggest market Germany went into reverse due to changes in cable TV regulation.

The European and African mobile operator, however, said on Thursday that its performance was in line with guidance for the full year.

Chief Executive Margherita Della Valle said revenue was growing strongly in Africa and Turkey, while in Europe lower inflation was slowing revenue growth and accelerating core earnings growth.

“We continue to progress our transactions in Italy and the UK as well as the broader transformation of Vodafone (NASDAQ:), focused on customer experience, business growth and operational execution in Germany,” she said.

Della Valle has simplified Vodafone since she permanently took the top job in April 2023. Operations in Spain and Italy have been sold, a merger with rival Hutchison’s Three in Britain has been agreed and around 11,000 job cuts have been announced.

The company expects to reports adjusted core earnings of around 11 billion euros ($11.92 billion) and adjusted free cash flow of at least 2.4 billion euros for the year to end-March 2025.

($1 = 0.9228 euros)