Vodafone upgraded its full-year adjusted EBITDA guidance to €13.2bn–€13.4bn, up from a previous range of €13bn–€13.3bn, following strong business sales and aggressive cost-cutting. The FTSE 100 group delivered over €200mn in savings in the first half, including 3,000 European job cuts, as part of a plan to generate €2bn in gross savings by decade’s end. Adjusted earnings rose 12.6% to €6.45bn, driven by enterprise revenue growth.
However, the company posted a €3.6bn loss after booking a €4.85bn goodwill impairment on its German unit, its largest market, due to rising bond yields and regulatory-driven customer losses. Vodafone confirmed plans to cut a further 2,300 jobs in Germany. The upgrade comes ahead of Xavier Niel’s expected regulatory approval to become the largest shareholder via Vega, after acquiring nearly 19% of the company.
Analysts note increased investor scrutiny on cost efficiency under CEO Margherita Della Valle, who has divested struggling units in Italy and Spain to focus on the UK and Germany.
Source: Financial Times Companies · Summarized by HeadlinesBriefing