Vodafone Share Price Fell 4.24% on Mixed H1 Fiscal 2024 Results

The Vodafone Group plc (LON: VOD) share price fell 4.24% after releasing its financial results for the half-year of its current fiscal year 2024. The telecommunications company noted that its revenues declined by 4.3% to €21.9 billion, compared to €22.9 billion in the same period of the previous fiscal year.

The decline was primarily driven by adverse foreign exchange rate movements and the disposal of Vantage Towers, Vodafone Hungary, and Vodafone Ghana in the prior financial year.

On a reported basis, Adjusted EBITDAaL decreased to €6.4 billion from €7.2 billion in the FY23 H1. However, despite a substantial increase in energy costs, there was a modest organic growth of 0.3%. The Adjusted EBITDAaL margin was 29.1%, which was 0.8 percentage points lower year-on-year.

Operating profit notably declined 44.2%, reaching €1.7 billion. The Group reported a loss of €0.2 billion, starkly contrasting the €1.2 billion profit recorded in the FY23 H1. Basic loss per share amounted to 1.28 euro cents, compared to basic earnings per share of 3.37 euro cents in the corresponding period of the previous year.

Cash inflow from operating activities decreased to €5.5 billion from €6.3 billion in the FY23 H1. This decline is attributable to lower operating profit and adverse working capital movements, which offset lower taxation payments.

Adjusted free cash flow decreased by €1.0 billion, resulting in an outflow of €1.5 billion. Net debt increased by €2.9 billion, reaching €36.2 billion (compared to €33.4 billion as of March 31, 2023). This increase was primarily driven by a free cash outflow of €2.0 billion and equity dividends of €1.2 billion.

Current liquidity, which includes cash, equivalents, and short-term investments, stands at €11.2 billion (compared to €16.0 billion as of March 31, 2023). 

Margherita Della Valle, Vodafone’s Group Chief Executive, commented: “During the first half of the year, we have delivered improved revenue growth in nearly all of our markets and have returned to growth in Germany in the second quarter. Vodafone's transformation is progressing. Our focus on customers and simplifying our business is beginning to bear fruit, although much more needs to be done. We have also announced transactions to strengthen our position in the UK and exit the challenging Spanish market in order to right-size our portfolio for growth.”

Vodafone share price. 

The Vodafone share price fell 4.24% to trade at 74.105p from Monday’s closing price of 77.390p.