Vodafone's Q4 2025: Contradictions on Mobile Pricing, Broadband Recovery, and Strategic Direction in Germany

Mobile Pricing and Market Conditions in Germany, German Broadband Recovery and Stabilization, Vodafone's Strategy on Mobile Consolidation and Asset Management, Customer Experience Improvements in Germany, Germany's Financial and Market Performance are the key contradictions discussed in Vodafone's latest 2025Q4 earnings call.



Financial Performance and Transformation:
- Vodafone delivered its FY '25 group guidance for both EBITDAaL and adjusted free cash flow.
- The company reported €11 billion in adjusted free cash flow for FY '25, which was in line with expectations.
- This performance was driven by the transformation agenda focused on simplifying operations and improving customer experience.

German Market Challenges and Recovery:
- Germany faced declines in broadband base and increased mobile competition, but delivered best-ever Net Promoter Scores.
- While market conditions remain challenging, Vodafone expects stability in customer base and benefits from the growing 1&1 customer base migrating onto Vodafone's network.
- The improved customer satisfaction is attributed to investments in operational transformation and improved customer experience.

U.K. Merger and Growth Outlook:
- The merger with Three U.K. is expected to contribute €400 million in EBITDAaL and €200 million in free cash flow on a full-year basis.
- Post-merger, Vodafone will be uniquely positioned for EBITDA and adjusted free cash flow growth, leveraging spectrum and network synergies.
- The merger supports growth due to increased market share and efficiencies from integration.

B2B Growth and Strategic Focus:
- Vodafone's B2B business showed 5.1% growth in Q4, with continued growth expected at the group level.
- The focus is on digital services, which have higher growth rates than core connectivity, supported by strong strategic partnerships.
- Growth in B2B is supported by high demand for sovereign technology services and defense areas across Europe and Africa.