Vodafone in H1 FY21: increased confidence in our full year outlook on resilient first half performance

Vodafone in H1 FY21: increased confidence in our full year outlook on resilient first half performance


BERKSHIRE, 16-Nov-2020 — /EuropaWire/ — Vodafone Group Plc (LON: VOD), a British multinational leader in technology communications through mobile, fixed, broadband and TV, has released its H1 FY21 results (ended 30 September 2020) delivering on its strategic priorities at pace to reshape the Group.

  • Resilient financial performance during the first half of FY21, in line with our expectations

  • Deepening customer engagement, with mobile contract customer loyalty improved year-on-year for an 8th successive quarter

  • Launched 5G in 127 cities across 9 of our European markets; 52 million marketable homes passed with Gigabit speeds

  • Reaffirming FY21 free cash flow guidance of at least €5 billion (pre-spectrum and restructuring) and adjusted EBITDA expected to be between €14.4 – €14.6 billion

Financial results Page H1 FY21 €m H1 FY20 €m Change (%)
Group revenue 33 21,427 21,939 (2.3)
Operating profit 33 3,472 577 n/m
Profit/(loss) for the financial period 33 1,555 (1,891) n/m
Basic earnings/(loss) per share 33 4.45c (7.24c) n/m
Interim dividend per share 44 4.50c 4.50c n/m
Alternative performance measures1        
Group service revenue 13 18,418 18,544 (0.8)*
Adjusted EBITDA 13 7,023 7,105 (1.9)*
Adjusted earnings per share 24 4.11c 0.85c +383.5
Free cash flow (pre-spectrum and restructuring) 25 451 394 +14.5
Free cash flow 25 (101) 34 n/m
Net debt** 25 (43,983) (48,107) +8.6
Net debt to adjusted EBITDA** 27 3.0x n/m n/m
Pre-tax ROCE (controlled) 28 5.1% n/a n/a
Post-tax ROCE 28 4.0% n/a n/a
  • Group revenue declined by 2.3% to €21.4 billion, as good underlying momentum was offset by the effects of COVID-19 on roaming and visitor revenue, as well as lower handset sales

  • Adjusted EBITDA declined by 1.9%* to €7.0 billion as the decline in revenue was partially offset by good cost control with net Europe opex savings of €0.3 billion realised during H1

  • Interim dividend per share of 4.50 eurocents, record date 18 December 2020


Nick Read, Group Chief Executive, commented:

“Today’s results underline increased confidence in our full year outlook. We are reporting a resilient first half performance and we continue to see good commercial momentum across the Group. The results demonstrate the success of our strategic priorities to date, namely increasing customer loyalty, growing our fixed broadband base, driving digitisation to simplify the company and capture significant cost savings, and deliver 5G efficiently through network sharing. COVID-19 and the reduction in roaming revenues, through the significant reduction in international travel, is currently obscuring our underlying commercial progress, with Q2 service revenue growing by 1.5% excluding roaming. We are now two years into our longer-term strategy to transform Vodafone into a business that enables a digital society, generating both sustainable growth and attractive returns. We are executing at pace, but there remains more to be done to achieve our goals. Now, more than ever, the connectivity services we provide are critical for society and the demand is growing for our services. I am proud of how our dedicated employees have worked tirelessly around the clock to keep everyone connected.”


1. See page 56 for the reconciliation to the closest equivalent GAAP measure.

All amounts in this document marked with an “* represent organic growth, which presents performance on a comparable basis, both in terms of merger and acquisition activity and movements in foreign exchange rates. Organic growth is an alternative performance measure. See “Alternative performance measures” on page 54 for further details and page 56 for the location of the reconciliation to the respective closest equivalent GAAP measure.

Net debt at 30 September 2020 marked with a **” has been adjusted to exclude derivative gains in cash flow hedge reserves, the corresponding losses for which are not recognised on the bonds within net debt and which have significantly increased due to COVID-19 related market conditions. The ratio of net debt to adjusted EBITDA is calculated using adjusted EBITDA for a rolling 12 month period, normalised for acquisitions and disposals within the period.

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SOURCE: Vodafone Group


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