Despite a Lag in Germany, Vodafone Group (VOD) is Focusing on Cash-Flow Growth
On May 20, Reuters reported that Vodafone Group Public Limited Company (NASDAQ:VOD) is witnessing cash-flow growth. However, the revenue of its German operations is lagging. CEO Margherita Della Valle noted that the company has shifted its focus to its strongest markets to achieve sustainable cash-flow growth.
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Vodafone Group Public Limited Company (NASDAQ:VOD) has been transforming its focus by selling off operations in Spain and Italy. Moreover, in December 2024, the company also secured a merger with Three UK to create a new joint venture called MergeCo. The deal has been approved by the UK Competition and Markets Authority and is expected to be completed during the first half of 2025.
Despite the strategic shift, Germany is one of the company's largest markets and continues to face challenges. Earlier today, Vodafone Group Public Limited Company (NASDAQ:VOD) released its preliminary results for fiscal 2025, highlighting that Germany revenue declined 5% during the year. The change in German law, which came into effect in July 2024, prohibits landlords from bundling cable TV fees with rent, allowing tenants in multi-dwelling units (MDU) to choose their own TV and broadband providers. This led to the company losing half of its 8.5 million MDU TV customers.
In the preliminary results for fiscal 2025, Della Valle noted that she expects to see broad-based momentum across Europe and Africa. She also expects Germany to return to top-line growth during the current year. Overall, despite the 5% decline in Germany, the company grew its total revenue by 2.8%.
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