Vodafone Group Plc (NASDAQ:VOD) shares are trading higher by around 5% after it reported the Q1 FY24 trading update.
Vodafone reported a revenue decline of 4.8% Y/Y to €10.7 billion, with organic revenues rising 3.7% Y/Y on broad-based organic service revenue improvement across most European markets.
Germany service revenue declined 1.3% Y/Y on the cumulative impact of customer losses over the past 18 months.
Also, Service revenues fell 1.6% Y/Y in Italy due to continued price pressure in the Consumer mobile value segment.
Service revenue in Spain declined 3.0% Y/Y due to a dip in customer base and continued price competition in the Consumer value segment.
Nevertheless, UK’s service revenue was up 5.7% Y/Y, aided by strong growth in Consumer business (thanks to an increase in annual price and customer base).
Vodacom’s (Africa) organic service revenue grew 9.0% Y/Y, on improvement in South Africa and strong growth in Egypt.
Also, Vodafone Business’ service organic revenue rose 4.5% Y/Y, led by a strong performance in the digital services business.
Outlook: Vodafone reiterated its FY24 adjusted EBITDAaL outlook at about €13.3 billion and adjusted free cash flow guidance at around €3.3 billion.
Apart from this, Vodafone announced the appointment of Luka Mucic as the new CFO and Executive Director, effective September 1, 2023.
Luka will replace Margherita Della Valle, Vodafone’s CEO, who was also serving as the CFO.
Luka has earlier worked at SAP SE (NYSE:SAP) as CFO for around nine years.
Also Read: EXCLUSIVE: Vodafone Strikes Strategic Alliance With Aventus For Public Blockchain Transition
Price Action: VOD shares are up 3.89% at $9.87 premarket on the last check Monday.
