Vodafone raises earnings outlook despite €4.79 billion first-half loss

Vodafone reported a first-half net loss of €4.79 billion after a major German impairment, but increased its full-year adjusted earnings forecast. The telecoms company now expects €13.2 billion to €13.4 billion, compared with its previous range of €13 billion to €13.3 billion.

The group recorded a €4.85 billion impairment in Germany for the half-year ending in September, attributing it mainly to unfavorable interest-rate changes. Its results also included a €2.2 billion writedown related to UK taxation. A year earlier, Vodafone posted an €829 million after-tax profit for the first half of its 2025/26 fiscal year.

Revenue increased 11.4% to €21.9 billion. Vodafone said much of the growth came from consolidating VodafoneThree after buying CK Hutchison’s stake in their UK joint venture. The integration of Kenya’s Safaricom and Telekom Romania also contributed.

Chief Executive Margherita Della Valle expressed satisfaction with the group’s overall performance but said Germany still needed to improve. Vodafone’s business there has struggled since legislation prevented housing associations from including television contracts in rent.

Vodafone separately announced plans to eliminate 2,300 German jobs. Across Europe, the company cut 3,000 staff during the first half, generating savings exceeding €200 million.

Della Valle began a broad restructuring in 2023, involving workforce reductions and disposals of the Italian and Spanish operations to concentrate on Germany and the UK. Vodafone shares initially gained after the earnings update before falling 0.8% on London’s FTSE 100.