Vodafone Shares Rise as Growth Strategy Gains Traction, Safaricom Deal Boosts Outlook

Vodafone Group (LON: VOD) shares have climbed around 3.4% on Monday morning as the telecoms giant delivered a stronger-than-expected first-quarter update for its 2027 financial year, reinforcing confidence in the “new growth chapter” chief executive Margherita Della Valle outlined in May.

The group reported organic service revenue growth of 5.2% for the quarter, with gains across every segment. Germany saw improved retail performance despite ongoing mobile competition, while the UK returned to commercial momentum, with Business fixed-line services growing again after a soft patch.

Africa remained the standout performer, with organic service revenue up 12.6%, driven by strong results in Egypt and Vodacom’s international markets spanning connectivity and financial services.

WELCOME BONUS - Free Share Bundle When You Invest £50! Get up to £500 cashback for investing with IG.

Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.

5.0

Open Account Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 68% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

Total revenue rose 9.7% to €10.3 billion, lifted by the consolidation of Three UK, while organic Adjusted EBITDAaL grew 6.2% to €2.9 billion as margins expanded 0.6 percentage points to 28.5%. Operating profit surged to €3.9 billion, largely reflecting a gain from the completed Safaricom transaction.

That deal, finalised on 30 June, saw Vodacom lift its stake in Kenya’s Safaricom to an effective 55%, with results now fully consolidated into Vodafone’s accounts from 1 July. As a result, the group raised its full-year guidance, targeting Adjusted EBITDAaL of €13.0-€13.3 billion and Adjusted free cash flow of €2.6-€2.9 billion.

Management now expects to deliver at the upper end of these updated ranges, citing broad-based momentum and progress on multi-year cost-saving initiatives. Investors welcomed the combination of accelerating organic growth, margin expansion and the earnings boost from Safaricom’s consolidation, sending Vodafone stock higher in early trading.