Vodafone Group lifted its full-year earnings guidance on July 27, 2026, aiming for the upper end of its projections after organic service revenue grew 5.2 percent in the first quarter ended June 30.
The British telecom operator posted a 9.8 percent increase in group service revenue to 8.63 billion euros, supported by cost-cutting measures, strong African growth, and the consolidation of Three UK.
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Total revenue for the quarter rose 9.7 percent year-on-year to 10.29 billion euros.
Adjusted core earnings increased 6.7 percent to 2.93 billion euros as cost reduction initiatives eliminated 1,200 European jobs.
The company now expects full-year adjusted core earnings to reach between 13.0 billion euros and 13.3 billion euros, up from its previous target of 11.9 billion to 12.2 billion euros.
African Growth and Safaricom Consolidation
Revenue performance across Africa proved especially strong, driven by double-digit service revenue expansion of 15.1 percent to 1.79 billion euros alongside expansion in financial services and data traffic.
In Egypt, service revenue outpaced inflation, while M-Pesa mobile financial platform revenues climbed 23.6 percent to 137 million euros across Vodacom's international operations.
Vodacom finalized an effective 20 percent stake acquisition in Safaricom on June 30, buying 15 percent from the Government of Kenya for 1.36 billion euros and 5 percent from Vodafone for 450 million euros to bring its total holding to 55 percent.
Safaricom's financial results will be fully consolidated into Vodafone Group accounts starting July 1, 2026, expanding the company's footprint across Kenya and Ethiopia.
