Vodafone Group NASDAQ: VOD used its annual general meeting in London to highlight progress in its multiyear transformation, including the integration of Three UK, portfolio changes in Europe and Africa, and a return to dividend growth.
Chair Jean-François van Boxmeer said the company has become “a simpler and stronger business” since Chief Executive Margherita Della Valle outlined a transformation roadmap in May 2023. He said Vodafone has reshaped its operating footprint, reset its capital structure and focused on improving service for approximately 300 million customers across Europe and Africa.
Van Boxmeer said Vodafone completed its merger with Three UK in May 2025, creating what he described as the U.K.’s largest mobile operator. The company also cited the acquisition of Telekom Romania and Skaylink in Germany, the announced sale of a majority interest in VodafoneZiggo in the Netherlands, and the acquisition of a controlling stake in Safaricom.
Cash Flow Outlook and Dividend Policy
During a shareholder question session, Della Valle said Vodafone expects to achieve the upper end of its adjusted free-cash-flow guidance range for fiscal 2027, representing 20% growth for the year. The company also expects organic adjusted free cash flow to grow at a double-digit rate in subsequent years, she said.
Vodafone has adopted a progressive dividend policy and is increasing its dividend for the first time since 2018, according to Della Valle. However, she said the pace of future dividend growth will be determined annually based on the company’s performance, balance sheet and operating environment.
The board recommended a final dividend of €0.0236 per ordinary share, bringing the total dividend for the year to €0.046 per share. Van Boxmeer said Vodafone has completed €4 billion in share buybacks over the past two years.
In response to a shareholder question about potential cost savings following the Three UK combination, Della Valle said Vodafone has announced €700 million in cost and capital-expenditure synergies over five years. She said the company’s cash-flow growth is also supported by performance across its other markets, rather than solely by U.K. merger savings.
Satellite, AI and Network Investment
Della Valle said Vodafone sees satellite connectivity as a complementary customer service rather than a major revenue stream. Vodafone is working with AST to enable normal smartphones to connect through satellites with broadband capability, with the goal of providing connectivity in locations not served by terrestrial networks.
She said the company expects its partner to have 45 satellites available at the beginning of 2027, a level needed to begin beta testing in the U.K. The timing remains dependent on satellite launches, she said.
Vodafone has established Satellite Connect Europe to support the rollout of satellite services across the continent with other telecommunications operators. Della Valle said the current priority is launching the service, rather than issuing revenue forecasts.
The chief executive also addressed the company’s use of artificial intelligence in network operations. Vodafone is conducting trials of AI-driven automation and will continue to use human oversight to maintain network security and reliability, she said. AI could help anticipate and resolve network faults, but Della Valle said its deployment must be managed carefully.
Regarding the U.K. network, Vodafone said it is investing €11 billion following the Three UK merger to integrate and upgrade its networks, with the objective of providing 5G coverage to 95% of the country. Della Valle said independent tests showed Vodafone’s nationwide U.K. speeds rose 50% over the prior year, while network “not spots” were reduced by an area equivalent to the size of Wales.
Germany and Customer Service
A shareholder raised concerns about Vodafone’s German operations. Della Valle said Germany represents about one-third of the group’s cash-flow generation, while the U.K. and other European operations account for another third and Africa represents the final third.
She acknowledged that Vodafone had faced challenges in Germany but said revenue had grown in the latest quarter and the prior quarter. The company is performing strongly in fixed-line and business-to-business services, she said, while intense competition in consumer mobile remains a constraint.
Della Valle also said customer satisfaction remains a central priority. Vodafone is now ranked first in customer satisfaction in 11 of its 15 markets, she said, including the U.K. Management recently visited its Stoke-on-Trent customer-service hub to review training, processes and systems.
Board Changes and AGM Resolutions
Van Boxmeer confirmed that Hatem Dowidar resigned from the board following the termination of the relationship agreement between Vodafone and e&. As a result, the resolution to re-elect Dowidar as a director was withdrawn.
Amparo Moraleda did not seek re-election after nine years on the board. Christine Ramon will become chair of the Remuneration Committee, while Anne-Françoise Nesmes will become chair of the ESG Committee. Olaf Koch was appointed as a non-executive director effective at the conclusion of the meeting, and Pilar López stood for election as chief financial officer.
Shareholders were asked to vote on resolutions including the accounts, director elections, remuneration matters, the reappointment of Ernst & Young as statutory auditor, share-issuance authorities and a share repurchase authorization. Vodafone said final voting results would be reported to the London Stock Exchange and posted on its website.
About Vodafone Group (NASDAQ:VOD)
Vodafone Group plc is a British multinational telecommunications company headquartered in London. It provides a wide range of communications services to consumer and enterprise customers, including mobile voice and data, fixed-line broadband, cable and pay-TV, and wholesale network services. The company also offers business-oriented solutions such as cloud and hosting, managed networks, unified communications, and Internet of Things (IoT) connectivity and platform services.
Vodafone operates through a combination of wholly owned subsidiaries, joint ventures and partner arrangements across multiple countries, with a particularly large presence in Europe and in several African markets.
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