Vodafone Shares Slide as Germany Declines in Q3

Vodafone (LON: VOD) shares fell more than 5% on Tuesday after the company reported a continued decline in its German business during the third quarter, despite overall revenue growth across the group.

In its latest trading update, Vodafone posted a 5.6% rise in group service revenue to €7.9 billion, with organic growth accelerating to 5.2%. This was driven by strong performances in the UK, Türkiye, and Africa. 

However, Germany, the company’s largest market, saw a 6.4% decline in service revenue due to regulatory changes in TV distribution, along with weaker broadband revenue.

Group Chief Executive Margherita Della Valle acknowledged the challenges in Germany, stating, “We are continuing to invest in the turnaround of our German business and we are starting to see improving customer trends, although conditions have become more challenging in the mobile market.”

The company reiterated its full-year guidance and highlighted progress in its ongoing portfolio transformation. Vodafone completed the €8 billion sale of its Italian business and secured regulatory approval for its UK merger with Three, expected to finalise in the coming months.

Additionally, Vodafone announced a €480 million share buyback programme, commencing 4 February, as part of efforts to return capital to shareholders following the Italy disposal.