Vodafone Group PLC said first-half growth accelerated across its core businesses and raised its full-year outlook for FY 2027. The stock slipped in premarket trading, falling 1.27% to $15.49 from a previous close of $15.69.
Group service revenue growth rose to 6.4% in the second quarter, the fastest pace in three years, according to the company. Vodafone Business posted revenue growth of 6.6%, which the report describes as a record pace for the unit. Digital services revenue topped 2 billion euros.
For the full year, Vodafone now expects about 7% organic adjusted EBITDA growth and 20% to 21% organic adjusted free cash flow growth at the midpoint of its range.
Germany remained weak. The company reported that H1 EBITDA in Germany fell 3.2%, partly because of an ECJ ruling provision and higher discount rates. The U.K. benefited from the VodafoneThree acquisition and synergy gains, and Africa and Türkiye posted double-digit organic growth.
Management said the company delivered 200 million euros of gross cost savings in the first six months, with more than 200 million euros of net savings expected for the full year. Chief Executive Margherita Della Valle described the period as the start of a "new growth chapter."
The report did not provide a reported EPS or revenue actual, so no comparison with consensus estimates is available.