Vodafone Reports Clear Turnaround in Germany as Q1 Signals Stabilisation

Vodafone Germany, long a challenge for parent Vodafone Group, appears to be edging toward stabilization after a period of decline. In its fiscal first quarter (ending June 2025), leadership reported multiple "tangible" signs that transformation measures are beginning to take effect.

One key metric: customer churn for branded mobile contract services has fallen into the single digits, marking its lowest rate in about four years. Executives highlighted improvements in customer experience and internal simplification as major contributors.

On revenue, Germany's performance remains mixed. Overall revenue dropped 3.7% to €2.97 billion, while service revenue declined 3.2%. However, those declines are less severe than in previous quarters—Germany saw a 6% service revenue drop in the preceding period. When accounting for recent regulations related to multi-dwelling-unit (MDU) TV service provision (in force since July 2024), service revenue stood nearly flat with only a 0.3% decline.

CFO Luka Mucic expressed optimism that Germany will return to service revenue growth during FY26. He pointed to the full effects of regulatory changes lifting in the next quarter, as well as scaling of the national roaming agreement with rival operator 1&1, which is expected to boost terms later in the year.

While mobile remains fiercely competitive and television services continue to face headwinds, Vodafone's executives say ongoing actions—simplifying operations, improving customer service, and aligning regulatory compliance—are driving progress.

On the Group level, results also show momentum: total revenue rose 3.9% to €9.4 billion, with service revenue up 5.3%, and adjusted EBITDAaL (after leases) improving 4.9% on an organic basis. Vodafone reaffirmed its full-year guidance for continued growth in revenue, profitability, and cash flow.