Vodafone has swung to an annual operating loss of €411m against a profit of €3.7bn last year, after reporting non-cash impairment charges for Germany and Romania that totalled €4.5bn.

The telecoms group confirmed in a trading statement that it had still achieved its FY25 guidance, having reported an adjusted EBITDAaL of €11bn and adjusted free cash flow of €2.5bn on a guidance basis.

Vodafone did still increase its full-year revenue by 2% to €37.4bn, against €36.7bn last year, after citing strong service revenue growth which was partially offset by adverse foreign exchange movements.

The group said it still had “much to do” reach the full potential of its businesses but added that it is now entering a “phase of medium-term sustainable adjusted free cash flow growth”. The group is expecting Germany, its largest market, to return to growth in FY26.

Vodafone did reveal it was also committing to invest £1.5bn in upgrading its UK network this year, ahead of the finalisation of the merger of its UK business with Three, which would include technical improvements to integrate the pair’s networks with each other.

“We are seeing the positive impact of our drive for customer satisfaction in all our markets – most noticeably in the UK and Germany – and we have delivered strong operational improvements across the business,” commented Vodafone’s group chief executive, Margherita Della Valle.

“Clearly there is much more to do, but this period of transition has repositioned Vodafone for multi-year growth.

“Looking ahead, we expect to see broad-based momentum across Europe and Africa, and for Germany to return to top-line growth during this year. This is reflected in our guidance for profit and cash flow growth for the year ahead.”

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