Telecom giant Vodafone reported stronger financial results for fiscal year 2026, supported by rapid growth in its African operations and the positive impact of its merger with Three UK.
The company posted total revenue of 40.5 billion euros for the year ending in March, representing an 8% increase compared to the previous year. Growth was largely driven by higher service revenue and the inclusion of Three UK into Vodafone’s operations.
Service revenue climbed nearly 9%, although Germany — Vodafone’s biggest market — remained relatively weak overall. However, the company noted improving momentum in the final quarter, with Germany returning to modest growth after earlier declines.
Africa delivered the strongest performance among Vodafone’s regions, fueled by continued expansion in Egypt and strong demand across Vodacom’s international markets. Türkiye also contributed positively with double-digit revenue growth.
In the United Kingdom, revenue growth remained limited but stable, with gains in consumer and wholesale operations helping offset weaker business-related contracts.
Vodafone’s adjusted earnings also improved, while the company returned to an operating profit after recording a loss in the previous fiscal year. The improvement was mainly linked to stronger earnings and the absence of major impairment charges that had impacted earlier results.
The telecom company increased its annual dividend and completed the final phase of its multi-billion euro share buyback program, signaling confidence in its long-term outlook.
Looking ahead, Vodafone expects further earnings and cash flow growth in fiscal 2027, although it warned that trade conditions, foreign exchange fluctuations, and energy prices could continue to create uncertainty.
The company also said restructuring and integration expenses related to the Vodafone-Three UK merger are expected to rise next year before gradually easing.