Vodafone posts €4.79bn loss on German writedown but lifts full-year outlook

Vodafone reported a net loss of €4.79 billion for the first half of its fiscal year, driven by a €4.85 billion impairment in Germany, but raised its full-year earnings guidance as revenue climbed and restructuring advanced. The British telecommunications group outlined ongoing efforts to stabilise its largest market amid intensifying competition and operational challenges.

The impairment in Germany, detailed in Vodafone’s latest earnings statement, reflects deteriorating market conditions and asset values. Germany, which accounts for a significant share of group revenue, has seen Vodafone struggle with customer losses and regulatory pressures, prompting the writedown and a sweeping restructuring programme.

Despite the loss, Vodafone’s total revenue grew 11.4% to €21.9 billion in the period, signalling resilience in other key markets. The group also announced cost-saving measures, including the elimination of 2,300 jobs in Germany and a cumulative reduction of 3,000 positions across Europe. These steps delivered €200 million in savings for the half year, according to the company.

Chief Executive Margherita Della Valle reaffirmed Vodafone’s commitment to its turnaround strategy, including strengthening its competitive position in Germany and accelerating growth elsewhere. The company now expects adjusted earnings for the full year to reach between €13.2 billion and €13.4 billion, up from the previous forecast of €13 billion to €13.3 billion.

The restructuring efforts follow French tycoon Xavier Niel’s move in July 2023 to become Vodafone’s largest shareholder after acquiring a €5.1 billion stake. Investors have pressed for more aggressive action to revive performance, particularly in Vodafone’s core European markets.

While the improved outlook suggests progress in recovery, the company faces persistent risks. Ongoing challenges in Germany threaten to erode market share, while job reductions may impact employee morale and operational capacity. Market analysts will be watching how Vodafone’s strategy, including recent asset sales and integration of new businesses, plays out over the coming quarters.

For European and international investors, Vodafone’s performance in Germany remains a bellwether for the group’s ability to deliver sustainable growth amid sector-wide disruption and shareholder activism.