Vodafone reports steady organic growth in third quarter

Vodafone Group (LSE: VOD) has reported sustained revenue expansion in Europe and Africa for its fiscal third quarter. Total Q3 revenue declined 3% year-over-year to €11.37 billion due to currency fluctuations, but rose 4.2% on an organic basis after stripping out currency effects.

By late morning trading, Vodafone shares were down 1.9% at 67.85 pence as investors reacted cautiously to the latest earnings release. The stock has fallen 25% over the last 12 months.

The company generated a slight lift in quarterly revenue in Germany, its largest market, as performance ticked up to €2.89 billion from €2.88 billion a year earlier. Vodafone stated commercial trends in Germany have started to improve, with 0.3% service revenue growth in Q3 versus a 0.1% decline in Q2.

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Vodafone’s enterprise division, Vodafone Business, posted accelerating organic expansion of 5.0% thanks to “robust performance in digital services,” the earnings release said. Meanwhile, African subsidiary Vodacom Group grew Q3 revenue 8.8% boosted by operations across South Africa, Egypt and other international regions.

For the full fiscal year ending March 31, 2023, Vodafone reaffirmed its guidance for adjusted EBITDA of about €13.3 billion alongside approximately €3.3 billion in adjusted free cash flow.