Vodafone Group(VOD)2024-11-12 13:49Financial Data and Key Metrics Changes - Group EBITDA grew by 3.8% in the first half, supported by strong growth in the U.K. (over 8%), other Europe (over 3%), and Turkiye (circa 50% in euro terms) [3][4] - Service revenue trends slowed in Q2 due to the peak impact from the MDU transition in Germany [3] Business Line Data and Key Metrics Changes - Digital services in the business segment grew by 18%, indicating a strong reacceleration in trends [7] - The company has completed over 80% of its role reduction program and has commercialized shared operations with Accenture [7] Market Data and Key Metrics Changes - The U.K. service revenue improved from flat to plus 1.2% in Q2, with expectations for continued improvement in the second half [28] - Turkiye has shown tremendous performance, gaining market share and achieving the highest-ever market share for Vodafone in the region [30][31] Company Strategy and Development Direction - The main operational focus is on Germany, with a new management team in place to drive customer-centric strategies [4][5] - The company aims to deliver gigabit-capable broadband to 75% of German households, enhancing its market growth potential [6] - The overarching objective is to achieve long-term growth that drives returns, focusing on customer satisfaction and operational simplicity [35][38] Management's Comments on Operating Environment and Future Outlook - Management expects a broadly similar performance in Germany for Q3, with improvements anticipated in Q4 as the MDU impact fades [19][20] - The company is optimistic about returning to positive growth in Germany by FY '26, supported by improved commercial trends and cost management initiatives [24][36] Other Important Information - The company has sold a further stake in Vantage Towers for €1.3 billion to establish a co-control structure [8] - The company is in the final stages of reorganizing its Group structure, with approvals expected in Italy and the U.K. soon [8] Q&A Session Summary Question: Impact of MDU transition on Germany's performance - Management noted an improvement in net adds performance in fixed services, with expectations for continued improvement through the year [11][15] Question: Service revenue trajectory for the remainder of the year - Management expects a slight improvement in Group service revenue growth in the second half, with positive contributions from the U.K. and Africa [28][30] Question: Competitive environment in the German mobile market - Management acknowledged increased competitive intensity but emphasized a disciplined approach to pricing [64][66] Question: Regulatory outlook in Europe - Management is actively engaging with European regulators to promote investment in the telecom sector, highlighting the importance of competition [81][82] Question: Future of joint ventures and tower monetization - Management expressed satisfaction with the current 50/50 structure in towers and indicated no immediate plans for further sell-downs [55][58]