Vodafone Group (LSE:VOD) said it now expects to deliver the upper end of its updated FY27 guidance ranges, having lifted the targets to reflect the newly consolidated Safaricom business.
Organic service revenue rose 5.2% in the first quarter to 30 June, with growth across all segments, while organic adjusted EBITDAaL (earnings before interest, tax, depreciation and amortisation, after leases) increased 6.2%.
Total revenue climbed 9.7% to €10.3 billion, boosted by service revenue growth and the consolidation of Three UK, partly offset by currency movements.
Germany's organic service revenue rose 1.2%, helped by stronger broadband pricing and digital services demand, while the UK returned to growth at 0.6% on continued commercial momentum in broadband and business fixed lines. Africa remained the standout performer, with organic service revenue up 12.6%, driven by Egypt and Vodacom's international markets.
Vodacom completed its acquisition of an effective 20% stake in Safaricom on 30 June, lifting its and Vodafone's combined shareholding to 55%, with Safaricom now fully consolidated from 1 July.
Group adjusted EBITDAaL guidance now stands at €13.0 billion to €13.3 billion, up from a prior range of €11.9 billion to €12.2 billion, with adjusted free cash flow guided at €2.6 billion to €2.9 billion.
"After our good start to the year, we are expecting to deliver the upper end of the new Group ranges", said chief executive Margherita Della Valle.
News Intelligence what this means for the company
Vodafone raised FY27 guidance to the upper end of its ranges after organic service revenue grew 5.2% in Q1 to 30 June, with organic adjusted EBITDAaL up 6.2% across all segments. The upgrade reflects the full consolidation of Safaricom via Vodacom from 1 July, which lifted group adjusted EBITDAaL guidance by €1.1 billion to a range of €13.0–€13.3 billion, and free cash flow guidance by €0.7 billion to €2.6–€2.9 billion.
The Q1 beat and uplifted guidance anchor confidence in Vodafone's turnaround trajectory under Della Valle, though the Safaricom consolidation inflates the headline numbers and masks underlying organic momentum. Execution risk remains on the £4.3 billion VodafoneThree buyout and its 0.4x net debt impact, which still requires UK National Security and Investment Act clearance.
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