Prime Highlights :
- Vodafone raises full-year profit guidance after strong African growth drives revenue higher.
- Billionaire Xavier Niel’s rising stake fuels expectations of cost-cutting and market share gains.
Key Facts :
- Adjusted earnings hit €2.9bn in the first quarter, up 6.2% year-on-year.
- Group revenue grew nearly 10% to €10.3bn, lifting shares 4.5%.
Background :
Vodafone raised its profit guidance on Monday after reporting a sharp jump in quarterly revenues, marking its first results since French billionaire Xavier Niel announced plans to take a stake in the company.
Niel announced this month that his Vega entity would acquire Emirati telecom group e&’s 16.2% stake in Vodafone, with his overall proposed stake since climbing to 18.8%. Analysts expect Niel to push for heavy cost-cutting at the FTSE 100 group as part of a broader effort to grow retail market share and lift profits.
Vodafone said it now expects full-year adjusted earnings before interest, depreciation, amortisation and leases to land in the higher range of its €13bn to €13.3bn guidance.
Free cash flow is also set to reach the upper end of its €2.6bn to €2.9bn guidance, driven largely by strong growth across its African operations.
The company reported adjusted earnings of €2.9bn for the first quarter, up 6.2% year-on-year, supported by group-wide revenue growth of nearly 10% to €10.3bn. Shares climbed about 4.5% in morning trading following the announcement.
Vodafone has gone through a major reshaping in recent years under chief executive Margherita Della Valle, who has sold off underperforming operations and sharpened the company’s focus on core markets such as Germany and the UK.