In the first half of the year, Vodafone Group Plc Sponsored ADR (VOD.US) saw a 1.7% growth in service revenue, maintaining its full-year expectations despite a weak German market.

Despite facing challenges with customer attrition in the German market, Vodafone Group Plc Sponsored ADR (VOD.US) is maintaining its full-year performance expectations. The British mobile operator saw a 1.7% increase in service revenue in the first half of the year, reaching 15.1 billion euros, in line with market expectations. Despite a 6.2% decline in performance in Germany in the second quarter, the company stated that this decrease was offset by growth in other European markets, Turkey, and Africa. Furthermore, Vodafone Group Plc Sponsored ADR is improving its financial position through the sale of loss-making businesses and mergers, and expanding its operations in the UK market. It is reported that core earnings for Vodafone Group Plc Sponsored ADR in the first half of the year grew by 3.8%, reaching 5.4 billion euros, meeting market expectations. However, the performance in the German market was poor due to a change in law leading to the termination of bulk sales of TV to apartment buildings, causing a 6.2% decrease in service revenue, an increase from the 1.5% decline in the first quarter. It is worth mentioning that earlier this year, the German government banned housing associations from bundling television with rent, impacting the performance of Vodafone Group Plc Sponsored ADR in the previous quarter, with the company warning of potentially losing half of the contracts with 8.5 million households. In response, Vodafone Group Plc Sponsored ADR CEO Margherita Della Valle is pushing forward a revitalization plan, including selling non-profit businesses in Italy and Spain, and merging with Three, a subsidiary of CK Hutchison Holdings Ltd, in the UK, with the transaction expected to receive regulatory approval next month, creating the highest revenue mobile operator in the UK. Della Valle stated that despite slowing growth in the German market, she is investing in Germany to strengthen market share and expand business-to-business capabilities. She emphasized, "We have performed well in all markets except Germany, where as expected, we were impacted by the TV law change. I believe the actions we are taking will drive growth for Vodafone Group Plc Sponsored ADR this year and accelerate further in the 2026 fiscal year." Nevertheless, Vodafone Group Plc Sponsored ADR reiterated its full-year targets: core profit of around 11 billion euros and adjusted free cash flow of at least 2.4 billion euros.