Vodafone (LSE:VOD) expects to earn more and generate more cash this year than it previously forecast.
Sales to business customers and growth in Africa helped the telecoms group raise its outlook, even as its German business continued to struggle.
Revenue rose 11.4% to €21.9 billion in the six months to September.
Part of that increase came from bringing businesses, including VodafoneThree in the UK and Safaricom in Kenya, into the group accounts.
There was growth in the existing business too.
On a like-for-like basis, revenue from services such as mobile and broadband rose 5.8%.
Germany was the weak spot. Vodafone cut the value it assigns to its German business by €4.85 billion.
That accounting charge weighed on reported profit without taking cash out of the business. Chief executive Margherita Della Valle said Germany was “not yet where it needs to be”.
For the year to March 2027, Vodafone now expects adjusted earnings after lease costs of €13.2 billion to €13.4 billion, up from €13.0 billion to €13.3 billion.
It also expects to generate €2.8 billion to €3.0 billion in adjusted free cash flow, raising both ends of its previous forecast by €200 million at the bottom and €100 million at the top.
