The Vodafone strategy 2025 is shifting focus to markets where the company holds strong positions. CEO Margherita Della Valle says this approach will drive sustainable cash-flow growth starting this year, even though Germany remains a weak spot.
Over the last two years, Della Valle has reshaped Vodafone. The company exited Spain and Italy and agreed to merge with another carrier in the UK. Once completed, this merger will make Vodafone the UK’s leading mobile operator.
“We are now operating in markets where we have strong positions and the potential to earn good returns,” Della Valle told reporters. The strategy centers on prioritizing core markets such as Britain, Turkey, Africa, and parts of Europe.
Germany, however, continues to pose challenges. A regulatory change affected Vodafone’s ability to sell cable TV services to apartments. This led to a 5% decline in service revenue, weighing down the company’s overall performance.
Despite solid results in other regions, Vodafone’s adjusted core earnings in Germany dropped nearly 13%. This decline brought the group’s EBITDA down to 10.9 billion euros ($12.3 billion) from 11.0 billion euros a year earlier.
Still, Vodafone reached its 11 billion euro target after adjusting for hyperinflation in Turkey. The company says it remains on track financially, despite regional setbacks.
Della Valle expects Germany to return to revenue growth within the year. However, she noted that another quarter will still reflect the TV law’s impact. The German market also remains highly competitive, which could slow recovery.
“We are not yet stable across all of Europe in FY26,” she said. “Germany will need more time to return to EBITDA growth.”
Analysts have praised Della Valle’s strategy for improving efficiency and reducing debt. Yet investor sentiment remains cautious. Vodafone shares have fallen 6% over the last year, touching levels last seen in 1997. On Tuesday, the stock traded flat.
Despite this, the Vodafone strategy 2025 signals long-term intent. The company is positioning itself to grow in regions where it performs best, while slowly repairing its position in Germany. With leaner operations and a focused vision, Vodafone hopes to regain investor confidence over time.
