Vodafone Group Plc has released its Q3 FY26 trading update, highlighting robust performance driven by growth across Europe and Africa. The company reaffirmed its outlook to deliver at the upper end of its full-year financial guidance.
Group Financial Performance
Total revenue for the quarter rose 6.5% to EUR 10.5 billion, supported by contributions from Africa and the consolidation of assets from Three UK and Telekom Romania. Service revenue grew 7.3% to EUR 8.5 billion, or 5.4% organically, with notable contributions from Türkiye and African operations. Adjusted EBITDAaL increased 2.3% organically to EUR 2.8 billion, while operating profit declined 52.7% to EUR 0.5 billion, reflecting M&A activity and non-cash accounting impacts related to Indian business simplification. Shareholder returns remained strong, with EUR 3.5 billion in share buybacks completed and a new EUR 500 million tranche initiated.
Regional Performance
In Germany, service revenue rose 0.7%, boosted by higher wholesale revenue and demand for digital services in the business sector. The migration of 12 million 1&1 customers to Vodafone’s 5G network was successfully completed. In the United Kingdom, overall revenue increased 30.9% following the Three UK merger, though organic service revenue fell slightly by 0.5% due to challenging prior-year comparisons. The integration is progressing ahead of schedule, with over 28 million customers now on the combined network.
Africa delivered strong organic service revenue growth of 13.5%, with digital financial services accelerating sharply. Vodafone Cash in Egypt grew 60%, while M-PESA revenue increased 24.6%. Türkiye recorded a surge in organic service revenue of 38.5%, supported by the recent acquisition of 100 MHz of 5G spectrum ahead of planned 5G service launches in 2026. Other European markets grew organically by 1.2%, with business growth driving momentum in countries such as Greece and Romania.
Strategic Developments
Vodafone continued to optimize its portfolio, completing the acquisition of Telekom Romania assets and Skaylink in Germany. In South Africa, a fiber joint venture with Maziv was finalized in December 2025. Looking ahead, Vodacom has agreed to acquire a controlling 20% stake in Safaricom, Kenya, from the government of Kenya and Vodafone, with the transaction expected to close in early 2026.
The Q3 update underscores Vodafone’s continued focus on expanding digital services, strengthening regional operations, and executing strategic acquisitions to drive long-term growth across its global footprint.
Margherita Della Valle, Chief Executive Officer, Vodafone Group Plc, said:
We maintained good service revenue momentum in the third quarter across both Europe and Africa, supported by top-line growth in Germany, and strong contributions from Türkiye and Africa. After a fast start, we are making very good progress with the integration of our UK business. Looking ahead, we are on track to deliver at the upper end of our guidance range for both profit and cash flow.
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