Vodafone Group raised its full-year earnings guidance on Monday following a solid first-quarter performance and the full consolidation of Kenya’s Safaricom, forecasting results at the upper end of its new range.
The European and African telecom giant lifted its adjusted core earnings (EBITDAaL) target for fiscal 2027 to between €13.0 billion and €13.3 billion, up from a previous baseline range of €11.9 billion.
Adjusted free cash flow target was set at €2.6 billion to €2.9 billion. Organic service revenue grew 5.2% during the quarter, driven primarily by robust demand across African markets and Turkey.
Adjusted EBITDAaL climbed 6.2% year-over-year to €2.93 billion. Shares of the London-listed operator advanced over 2.5% in early trading following the announcement, reflecting positive investor sentiment.
The upgraded outlook factors in the consolidation of Safaricom after subsidiary Vodacom expanded its effective stake to 55%, integrating key operations in Kenya and fast-growing networks across Ethiopia into Vodafone’s group accounts.
This operational pivot comes as Chief Executive Margherita Della Valle continues restructuring Vodafone’s footprint. The group previously exited sluggish European assets, including operations in Italy and Spain, to focus on higher-growth markets.
With inflation stabilizing and high-speed data usage surging across sub-Saharan Africa, management expressed confidence that momentum in mobile financial services and data infrastructure will sustain earnings near top-tier targets.
