Vodafone raises guidance despite €4.85bn German impairment and 3,000 job cuts

Guidance lifted despite the writedown

Vodafone raised its full-year adjusted earnings guidance to €13.2bn-€13.4bn, up from the earlier €13bn-€13.3bn range, and announced the change alongside its half-year results. Adjusted earnings reached €6.45bn in the first half of 2027, 12.6% above the €5.7bn of the same period a year earlier, helped by a jump in revenue from business customers. The group had already lifted its outlook in July. The update is expected to be the last set of results before Xavier Niel receives regulatory approval to become Vodafone's largest shareholder.

First half 20265.7

First half 20276.45

First half 2026

5.7 €bn

First half 2027

6.45 €bn

Data from the article text

A German writedown and a statutory loss

Vodafone booked a €4.85bn goodwill impairment on its German business, linking the charge to higher German government bond yields and weaker financial performance. That charge pushed the statutory result into the red, with a pre-tax loss of €373mn for the six months to 30 September, compared with a profit of €2.1bn a year earlier. Coverage also cites a €3.6bn loss for the period, a different figure that sits alongside the pre-tax number. Germany, the group's largest operation, has struggled since a July 2024 law change let people in housing association properties choose their own TV provider, which triggered heavy customer losses. Margherita Della Valle, the group chief executive, addressed the problem directly when she presented the results.

“I am very happy about our overall group performance, but Germany is not yet where it needs to be.”

She also described the response now under way in Germany.

“We have a clear action plan in progress, which is structurally simplifying our German operations and improving customer satisfaction across all of our services.”

Job cuts and cost savings

Vodafone cut 3,000 roles across its UK and European division in the first half, although it did not say how many of those were in the UK, where the group is headquartered. Roles were also affected in shared services, which support the division from centres in India and eastern Europe. On Monday, 9 November, the company announced a further 2,300 job cuts in Germany. In the first six months it delivered €200mn of cost savings across its European business, including €50mn (£41mn) in the UK, following its 2025 deal to merge with Three UK, which created VodafoneThree. The wider plan targets more than €2bn in annual cost savings across Europe and shared operations by 2030. Since Della Valle took over as chief executive in 2023, 11,000 roles have gone through to the end of September 2026, and annual costs have been cut by €700mn so far.

UK and Europe, first half 20273,000

Germany, announced 9 November 20262,300

UK and Europe, first half 2027

3000 jobs

Germany, announced 9 November 2026

2300 jobs

Data from the article text

Niel's stake and the next phase

Xavier Niel's Vega entity agreed in July to acquire the 16.2% stake held by Emirati telecom group e&, and he has since increased his holding to almost 19%. Regulatory approval for him to become the largest shareholder has not yet been granted. Niel is expected to push for wider cost-cutting measures across the group. Della Valle has sold struggling units in Italy and Spain and has prioritised the UK and Germany since taking over.