Vodafone Group has reported a sharp reduction in annual losses, signalling early progress in its major restructuring drive aimed at refocusing the business on core markets.
The company said net losses narrowed to €397 million ($466 million) for the financial year ending March, a significant improvement from €4.2 billion recorded in the previous year.
Chief executive Margherita Della Valle attributed the turnaround to ongoing transformation efforts, including cost-cutting measures and portfolio simplification.
“After the transformation of the last three years, we are now a simpler company with a stronger growth outlook,” she said.
Vodafone’s restructuring plan, launched in 2023, has included thousands of job cuts and the sale of operations in markets such as Italy and Spain as part of a broader strategy to streamline its global footprint.
Despite the improvement in losses, the company continues to face mixed performance across key markets.
Revenue rose by 8 per cent to €40.5 billion, supported by stronger service sales and the merger of Vodafone UK with Three.
However, performance in its largest market, Vodafone Germany, remained under pressure, with service revenues declining over the year. The company attributed part of the weakness to regulatory changes affecting bundled TV and housing contracts.
Following the earnings update, Vodafone shares fell 5 per cent on the FTSE 100, although the stock remains up 16 per cent since the start of the year.
Market analyst Richard Hunter said there were early signs of progress in the company’s turnaround.
“There are increasing signs that the transformation is beginning to reap rewards,” he said, noting that Vodafone has become “a smaller and less geographically diverse, but more focused operation.”
However, he warned that years of weak performance continue to weigh on investor confidence.
Vodafone also recently announced a major strategic move to take full control of its UK operations by acquiring CK Hutchison’s 49 per cent stake in VodafoneThree for £4.3 billion ($5.8 billion).
The deal is part of the company’s broader push to strengthen its position in key European markets while simplifying its corporate structure.
