Improved Quarter 1 Revenue for Vodafone Beyond Anticipated Expectations
Vodafone Posts Strong Q1 Performance, Achieves 3.9% Revenue Growth
In a positive start to the year, Vodafone, the world's second-largest mobile operator, reported a better-than-expected 3.9% revenue growth in its first quarter, reaching €9.4 billion in total revenue. The service revenue grew by an impressive 5.3% to €7.9 billion.
Vodafone's Chief Executive, Vittorio Colao, stated that the group had made a good start to the year in Europe, with growth accelerating in its African, Middle East, and Asia Pacific markets. The robust performance was driven by strong underlying service revenue growth in key European markets such as Italy, Spain, Turkey, Germany, and Ireland.
In Italy, the company saw strong growth, contributing to the overall European region growth, although the exact growth rates for Italy alone are not specified. Spain also reported solid service revenue growth, while Turkey's performance also contributed to the group's growth, albeit without specific figures.
Germany and Ireland operate as part of Vodafone's European footprint. The overall European revenue growth was positive, driven by service revenue increases. The newly formed UK operation from the merger of Vodafone UK and Three UK (VodafoneThree) started operating on June 1, 2025, and Vodafone holds 51% ownership; however, specific growth details for Ireland are not clearly disclosed in the given data.
In Ireland, Vodafone added 20,000 contract customers to its mobile base and reported a total service revenue of €235.1m in Q1. The Irish underlying revenue growth was 1.1% year on year, and the fixed broadband customer numbers grew to 264,000 (+6.9% YoY).
Despite the positive momentum, growth in Germany halved to 0.6% in the first quarter, down from 1.2% in the previous quarter, indicating areas of weakness.
In a separate entity, Vodafone Idea in India, revenue grew about 5% in Q1 FY26, with some improvements in average revenue per user (ARPU rising to ₹177 per month). However, its net loss widened slightly.
Looking ahead, Vodafone expects to grow core earnings by 4-8% for the full year, and has plans to boost dividends with an increase in cash flow this year. The company is easing back on network investment, improving efficiency, and tackling intense competition in India by merging with a rival.
For more detailed breakdowns by each specific country, these may be found in Vodafone’s official regional financial reports or investor presentations for Q1 FY26.
Technology played a significant role in Vodafone's Q1 performance, as the company leveraged advancements to drive service revenue growth across key European markets. In the finance sector, Vodafone is aiming to boost dividends and grow core earnings by 4-8% for the full year, partly through improved efficiency and network investments in various industrial sectors such as telecommunications and IT.
