Vodafone Group predicted a stronger performance from its business unit across the remainder of its fiscal 2025 after service revenue growth for the division slowed during its opening quarter, a period in which its overall metrics trended upwards.

The operator’s Business unit booked service revenue growth of 2.6 per cent year-on-year in its fiscal Q1 (calendar Q2), which compared with a 4.5 per cent increase booked in the comparable period of its fiscal 2024.

In its trading update, Vodafone attributed the lower growth rate to “project phasing in Germany” and its Other Europe market, situations it predicted would “normalise throughout the rest” of its fiscal year.

CEO Margherita Della Valle (pictured) used the update to highlight progress in a strategy to cut its stake in infrastructure business Vantage Towers, a move announced after the fiscal quarter but which the executive noted is one of several being taken as part of a “broader transformation of Vodafone”.

Della Valle highlighted the commencement of a €2 billion share buyback programme following the sale of its Spanish unit, along with moves involving its Italian and UK operations, actions she argued will “deliver improved performance and underpin the turnaround of Vodafone”.

The CEO branded Vodafone’s opening quarter as “consistent” with its fiscal year 2025 guidance.

“We continue to deliver strong revenue growth in Africa and Turkey, whilst lower inflation is slowing revenue growth in Europe and accelerating Group EBITDAal growth”.

Della Valle added a decline in German service revenue had been anticipated due to changes in domestic TV laws.

Vodafone does not provide net income figures in its quarterly trading updates, though showed a 42.9 per cent gain in operating profit to €1.5 billion.

Service revenue was up 3.2 per cent at €7.5 billion with the overall figure of €9 billion 2.8 per cent higher.