Vodafone Group Public Limited (VOD) 16 Nov 202021 Q2 Earnings call transcript

Company Profile

Participants

Nick Read	Chief Executive Officer
Margherita Della Valle	Chief Financial Officer
Akhil Dattani	JPMorgan
Emmet Kelly	Morgan Stanley
Andrew Lee	Goldman Sachs
Jerry Dellis	Jefferies
Georgios Ierodiaconou	Citigroup
Polo Tang	UBS
Maurice Patrick	Barclays
David Wright	Bank of America Merrill Lynch
James Ratzer	New Street Research
Sam McHugh	Exane
Nick Delfas	Redburn
Robert Grindle	Deutsche Bank
Jakob Bluestone	Credit Suisse

Call transcript

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Nick Read

Hi everyone. And hope you're staying safe. Thank you for taking the time to join Margherita and myself for our Half Year results. And you've seen our presentation.

So we are open for Q&A.

Vantage in saw Towers the the with around a we and point relationship slide specific deck Vodafone. one Towers, that you had importantly Just regarding Vantage

we Q&A there because a Capital our take more tomorrow. is to Day happy into any are relationship We but can't Markets go specifics regarding

can't tomorrow. very regulatory you structure, questions your so it terms into And we the under informative go answered are because think we I find strategy, today. of constraints, all will in will growth capital that be drivers,

So I And and Session with that, get hopefully think on start question we Question-and-Answer everyone per they're we have analyst. I through but will queue. one think we never disciplined the can

Operator

you. Thank

comes Akhil Akhil, first of question your So from is Dattani JPMorgan. open. your line

Akhil Dattani

for is taking the going Thanks And trajectory revenue morning. really the question. question forward. the good hi, around Yeah,

a the than You've this service consensus expected. better had performance revenue quarter much

One of the components BXB. you've is out called

specifically, and And think BXB keen I'm very in is a what understanding obviously part correctly, second the that that driving pricing. about that traditionally, of to And So of is if can we going understand lot how forward? looking through your and are increases QX kick in, I'm this that QX. actually, around seeing into the a put number increases and lockdown, of didn't. starting QX And but to with you they price time in forward price

forward just So talk going those long? to as us help and how can understand just also moves maybe the trajectory you pricing that drives to

Margherita Della Valle

Good, picture then how moving of your forward. parts, the Akhil. try to on comment I'll we first you a on give point and see BXB going

pretty performance, in with space. I concerned, is BXB much As far as pleased very that our would KPIs around all say we're

our fixed I out rate; had in the least with BXB four at are Europe ever of in remember, in quarter, of customer X% in had markets we numbers, in leading in now. churn look main can lowest the satisfaction good at the five growth; in NPS, we've you growing If we've or mobile, that

much result acceleration QX, I effectively to I we the products in the rewards crisis. very going being that. deploying of the are being the And so a range close see lockdown broad-based QX, would And in were say them of through think helping being it's, customers, of our in after now very which reaping we that fast

So headline I competing, BXB. well, is would say the in

then, In terms would split lines, of parts, answer trend near-term. we into the overall, how the see maybe two I

to expect then as So and QX service the and the look some say that there we drags can this fair term, still we remainder of fiscal QX, into revenue. year, longer are think it's more our I on

lockdowns fronts. two As this different restarted ways you've relevant And for seen, markets. is across on the us our in revenues have somehow on

suppose, this one, then remainder particularly packages, in the I And fall second for the last that element is obviously international was now for year, when a and there the in how they uncertainty and lockdown. support government of will long recovery how, over the Africa. Europe. First need bit is still expect the down summer back will to a travel, of there we with again

these So forward. of parts are going moving sort the

going our will back you trends, lapse. I have as the point will better growth of reason momentum, have is think next of you likely. in year, out moment we the a services see COVID, from we as that significant special definitely expect, BXB, seen roaming keep is move our a seen. bit than think a we that because terms we I of release, we want the half revenue in this demand the see good on had as still I have you the for in first you'd good because service roaming second half, why particular, drag commercial in oscillation from of a medium-term ex-roaming. And drag we degree but The that April, to referring to into also that is do look the fact on that to also to

growth will accelerated is next our international ex-roaming ourselves is very a alone therefore, at And there underlying compare we to then you service stable. year. little any now, where emerge with group if be have moment, ex-roaming, was in already that performance this will underlying year travel. as across the the to We there X.X% which and allow positive be This seen travel Europe going into seeing let performance was are recovery revenue

expected the on total revenue growth year. service for to return coming clearly performance So,

Akhil Dattani

And specific any the I great. pricing just you. Thank the bit, market out, you'd just call pricing dynamics? there on That's understand mean, are to

Margherita Della Valle

pricing good very mentioned, through pricing. of similar bit this near-term that going service maybe Because moves. little a acceleration, revenue COVID in a did you're of repositioning on year, earlier also terms around in raising different would as right, actually, point these were of prior being little we but bit or I I big timeframe, it's a No, you size. rephrasing, of a you're because say What don't a see cycles, create in as bit driver growth, a

Nick Read

where I opportunities will like we But normally. fair - think we to to I it's be are, looking next think see would to the year say just

Akhil Dattani

much. very Thanks

Operator

Thank you.

of Morgan Your go ahead. Stanley. Emmet, comes from Kelly question next Emmet please

Emmet Kelly

you Thank morning, my good everybody. for taking question. Yes,

except on question me, So, the similar EBITDA a side. from

plan the drivers So on what to to of guidance, please? the of key you few your in are EBITDA guess, cost maybe the Thank have HX. you. Can you as just year. EBITDA a second and just well, I I X%, half cutting positive reported refer plus it X% X.X% say look the off plus suggests, maybe And EBITDA improvements, words the in of roughly maybe at if minus

Margherita Della Valle

of half the of of post-COVID. our on strong Sure. this range EBITDA the positive outlook demand some side momentum BXB, drivers lower drag let's Akhil, front, be year our in we on further we seasonality. In right by general the upper because terms, what just need said, good of one should in see. than factored the you're in But as are first the in commercial And immediately to second will year right, the to have we gave mentioned be, with in on offset we say, same end we as number clearly second the roaming, the the of zero. upgrading services back I guidance of half a is and again, the volumes mean, what to call probably half a I our that would fall so down for I expect

service. in integration some COVID not say behavioral transformation, change digital behaviors in those shared as as our in locking has All have results from things can coming activities pleased programs half about the of supportive been have around the around have our forward. are with so accelerated. very progress, changes you before, some cost going we at you slowed down digital trends, either customers In that I in well of this we are imagine, would like have COVID. KPIs or asked me first cost same far. to journey. can And And terms due you Actually, as particularly seen the we of at into anytime us been instances, the cost, had reduction look progressing pace someone the

in So near the us the very, some further term. Clearly term very opportunities longer and positive progress. ahead both in of

a And cost of billion and another my, further really remember FYXX. some a FYXX improvements think have to that reductions in may between operating strong deliver Europe into the I assets Group You these we model.

through, the to have effectively now location about them there best accelerate the integrated and we're what machine You've cost process. a post-COVID link standardize to further package anything, talking seen back across and our reduction processes we good to We also programs. presentation, opportunities automate them, decide procurement in that, the of carry think if what's the market, to them on that, integrate them, an similar

Emmet Kelly

you Super. Thank very much.

Operator

Thank you.

is of Lee Andrew Yeah. Sachs. from Goldman open. line comes question next Andrew, your Your

Andrew Lee

of such on I about morning, and color guys. practically question on parameters thinking this kind any how helpful more and presentation this the moment? had assets, as around about Spain portfolio really give and think Good the of management. you for underperforming a how us There's at what lot you in you're Can the it. detail detail means a

Nick Read

presentation, these to a and principles in three really recognizing tried framework, as it. it We sort had we Group for thanks the our CEO. forward. three core core out need I we portfolio is And this came have there, principles way Andrew, Yeah, - to laid of since decided going look in been the at

asset it that must employed regional best the an So delivers of the greater have of to portfolio. local range that And that from that a also are long return actionable asset plan must scale; a range scale, we to long we has that and thirdly, credible than the need to is asset, over and benefit from plan capital first we the the be of ensure on [rack] we principle make then have be part with. being agree benefited have the sure both Group market owner but

take deep long we didn't on Spain. plan. the in very frankly, years looked over range trajectory. weren't return dive we right on we the the if example, a the have that And an Spain long and So did Margherita confidence We I, ago, as felt capital at two And on plan. range they

drove low-end, basis. We so competing a we transformation, digital totally and radical came on of very strategy, did branded. sharing we're drastic an football, different sure transformation commercial out restructuring and alternative a we And radical making we did mid, plan, network high, to more

made. demonstration. last number good demonstration we've that have is been think of frankly, And good really progress I really the quarters today of

you're think I on foot the I transformation And excellently. think now have that in that the team seeing executed Spain. through, front us

to you they relative good results set think a when us results. see of think I - I are others;

past two Orange. having on now retail, are We just number

We broadband. have had And expansion. and we've TV, either fixed halves or five stable EBITDA of quarters, improving two consecutive mobile,

will So, a returns time. that improve think prove plan and I to good got we've over organic

our on view, positions. always those course, consolidation value pragmatic that be opportunities, for sort how shareholders. strengthen we've they're And opportunities, to Of to there if were of accretive we taken market-to-market will evaluate always yeah,

Andrew Lee

a short then that that take the sustainable Spanish the your I into in trends half you. of big ask Can Thank from quarter just saw up? as I very in we follow comments improvement the the it year? second

Nick Read

we've a think I got that Well, business. you're momentum as Yes. saying

we in the four, growing. from in business first half, has If that high We think the was we first second yes, both we be half though effectively. the And were low I end, perspective, said the momentum. a acknowledgement, quarter at growing remember and are very in are think growing you EBITDA, a competitive even you we'd I with a market I intensified competing think the are

Andrew Lee

you. Thank

Operator

you Thank much. very

from Please Jefferies. comes next Dellis of go Your question Jerry ahead.

Jerry Dellis

the mid-band please? I for Yes, to markets. about performance delivered questions. my XG all is ask good brings But wanted fully spectrum over morning. that you spectrum taking your Thank understand XG, of not gains. mid-band in available We

what's is market-by-market, the in that you case extent a deploy from for to that, first fully commercial there first, necessity to perhaps and spectrum a back as uncertainty, you. about bit Huawei is to And there enduring So a investing? being XG is commercial related market-by-market? of Huawei XG launching the what uncertainty some low-band differs to holding Thank sort

Nick Read

foot Jerry, like, if were you on we we across the We on XG. of think one made, I front to launch Europe. went to first the

I businesses and think effectively. landed of the message that consumers minds in we very

small, markets. Of scale. was dispersed it it course, throughout but European mass widely was It wasn't

effectively we but now symbol you operators consumers we businesses. ramp giving deploy? I do So as What it spectrum question as will markets should seen in Some actually, you it's XXX are perspective, said what across the to we how a from XG. very is, And we a to Then a nine Europe. don't dynamic deploying misleading which The want do currently, we a want much in, XG think XG to that, sharing, XG is, be no, is, as is, a to leader is is cities we're it as in so taking right. company up. see, And performance. built are because starts and DSS, question perception

starting significant about usage the perspective. from available XG, XG because enterprise, business a and was want in also the we performance. the is user that is demand business have moving enabling spectrum in And when case, real data there platform. capability cases was a about is XG deploy it's forward businesses, part from We're markets, XG I know where the each there the with We the browsing, level video. So the economic we're see GHz starting XG. the an world. ultimately, world's IoT IoT if along type X.X of it's with that largest this we XXX, is cities, real perspective, an with the we

it's where economics with coverage really about about not superior focusing product count. So messages us a inferior an on it's think product, I the

Jerry Dellis

constraint? uncertainty Thank Huawei Does you. does And the a create matter? that

Nick Read

each the Huawei to years, RAN. of doing very toolbox from We've clearly, want already made countries on to on would we're on four European clarity the governments and between five decision core. of core different are with made They Well out implement toolbox. next governments the but we'll engage the think and each process XG that. of and We're European you I our that. much working And core. distinction core taking with a over But the in the RAN, the

nothing but delay. than I in would I a what So any say Thank some material is, that. Maybe we pause for you. months, say it's markets, few more been wouldn't

Operator

Georgios from Georgios, Ierodiaconou Citigroup. comes question ahead. next from please go Your

Georgios Ierodiaconou

thank taking in number It's remarks, that regulation present. two my you question. you of highlighted my Nick, is Portugal. the countries exception parts. during Good a right introductory direction with And morning, is question going one on in which for is your are And you and in regulation. the Perhaps,

Vodafone? the something picking returns capital you employed, on around I'll are market on and the that And for will you by have winners losers you there, will and secondly, on country more similar process. the as material already make broadly, revisit your believe term. returns hear thinking views be no Altice, the spectrum leader until capital they in they on in investments deploy long to then whether I interested stated Firstly, focusing auction be

to So think are to starting order you importance regulators regulation from do in capital more the or the Group? of understand politicians you. fairer attract Thank

Nick Read

what with I'll into and then deploy Yeah, bring latter the talk to in I demand products. first the because about And create time we governments that the what and - we all to our to Georgios, which return. invest, serious the I will about but a principle. of what where question, shareholders a in need start is go a about for willing contracts. need But question. world, want we investors and terms right Maybe we're social society, very talk is reinforce contract to good COVID the greater earn capital to capital, what is want we we I the invest structure that see healthier is we healthier even talk our deploy And need I a we is, to about contract saying conditions. supporting adequate market the

to Commission. And structure, what weeks week, I so Commissioner last I and we have been actively We engaged in mean, of with very I healthy need about three weeks' meeting industry talking another industry makes couple before so a European was engaged. time facilitated. about what got Vestager, Breton that, things have with actively a

they very in that. a they healthier acknowledging understand to inclusive structure. say think I society, So And evidence they If And sustainable, they they to need points. I'd leaning want much that. a connectivity. I tried a are presentation, digital listening of they're number of criticality into put the want because society, if now a digital, the provide

Of Portugal. early turn this course, days. I is to then But

put spectrum advantageous really pause. failure terms, do that operators XXX especially And Portugal, testing, that new so excellence Because Portugal's was we market And to we going were the for are with structure evidencing providing obligation healthy national entrant really into FTEs terms good example put out industry with spectrum can prices being not we're crisis. structure. given not for that we where incentive is and it center just we existing with into to And a lower we auction real planned said, against markets? we whatsoever, of when market had people investing on in a That support was are no work to roaming. of said, essentially way, the and governments roll of and a in a where that no saying there both no that

government out opinion, it the believe aid. enough. roll conditions, my a to in they not have the this Now is And gone the and pay and changed still far believe fine. price, opinion, European Telco contravenes we've new have state my network, the full conditions, they entrant But still in law. have regulator that improved We we'll team's engaged, we will now have

community, going continue if are investor making. a healthy we we you to have have them. to balance. there's to So litigate And against a while to investments we will consider governments realize, do want we're Yeah, the that, that

Georgios Ierodiaconou

Clear, thank you.

Operator

you. Thank

open. next Your Polo, your comes is of Tang question from Polo UBS. line

Polo Tang

uplift taking presentation stable they of given And question. Germany, quarter have a Good the over we in you on you speed in your Can your morning, net-adds taking were mentioned you gig clarify was think round because I I that for have and accelerate pick almost so very think up should service QX, everybody. of of €XX one of your about the trajectory question broadband? can Germany from I I a think at Thank a advantage revenues in about your terms month, upgraded. such a the So one kind think as speed around any in coming just given and about a that speeds base really here? you do €X Germany that much. German broadband Thank terms promoting quarters? broadband the month But expect color you've broadband you think should we €XX, you should been that gigabit people German in how was forward? going ARPU a in fixed

Nick Read

we've sit we do XX just gigabit then let outlook pass want with good upgrading our any job provide me say you high type now speed. maybe homes a gigabit really to So back of network. if million and and But level done of the we comments. sort

in the pleased respect. We've had decent of that net-adds. terms run broadband execution with a quarter that accelerated rate fixed in the So we're in

I we've So would especially on momentum. got so our cable performance, say,

the things in the where call coming some had clear improvement Germany of Vodafone harmonized And and as got they premium a and this which We've quarter. area. have out the roadmap product We year. now that retail We've we've then is TV Margherita's I'd processes. the we'd graph TV We show OTT been as the see two TV think, we been of product. area KDG. that some fourth Unity in I product we've in a performance to see like harmonize sales coming quite to got good in in not the roadmap,

we're say a definitely I'd the second acceleration half. So gaining focused higher momentum and on more in

Margherita Della Valle

So just the quarter increased you the maybe growth affects love negative see drag been the point, which growth ULL adding and the total point why is has fees were Deutsche Telekom by in Germany the a wholesale. because Wholesale in technical flattish we reason rate. a the in this

Polo Tang

something, on Can we talked Champions in maybe important moved we pick seeing think away Liga, up are commercial from terms look bundle? actually I and you Spain, is a League football in TV accelerating at obviously TV you about how just of La do converged but if you Because trends.

So overall, is converged a how important in bundle? TV

Nick Read

think I Now, very it's important.

football we is to with simply example. What market, And we we paying someone channels like over would search what the then question but all I that run, linear with bring, bundle. Sky content. bringing box think we the as TV XK with do we on ensuring keen focus experience, the for arrangement the within apps is open across the a €XX Plus type have surface Vodafone an harmonized what what Germany on of commercial for I mean huge bundle within aren't have rather long is fees that is,

and recordings. what storage voice easy looking looking consumers cloud so for for, You're activated, find they're your to for nice for it's

quarter the TV box we that we Germany launches then on So position. is are Horizon We're market experience from we execution and the four. to Europe that think will for seven in box. Giga new the scaling eighth migrate our And in and as TV customers the already, markets in

Polo Tang

thanks. Right,

Operator

is from Patrick Maurice, is question next Your line your Barclays. Maurice from open.

Maurice Patrick

to seems so Morning, of boosting job guys. and around presentation returns key thrust returns overall. the be Yeah, a

retail satisfied sharing balancing correctly portfolio the actually capital not you on of slide and talking about about monetization, over Germany you your falling really a much have it. is only wholesale said retail I you and But because about not the lots XX%. done and talked I side, utilization you coming question think thinking a the the a Germany. you is It's and sort role on areas obvious network were that So the base about of X% you've If and employed outside about quarters. slightly. how about Germany think in across And grow

Deutsche So of I example, would cable, on guess truly, got new up. that you Is in I [storage Germany? enough? a more about looks coming your thoughts wholesale you've partner. yours, line need for you know the had it like which think I mean, using plan]

mix utilization So, Germany? in thoughts the wholesale asset about retail balancing and and the you. Thank

Margherita Della Valle

Maybe broadly to But I first, reacting around the the of as growth growth to well deal. the obviously COVID as at from German is wholesale, moment. your flat exit the on one-on-one headwinds from coming it German before more suffering which wholesale just was is is points

you higher the revenues are in if retail roaming, quarter areas are to driving X.X%, we expected go we time, you driving one. are expect, growing you continue to earlier, would of already are also grow you the reasons speed. which exclude nicely, to I All these Germany cable why by just reacting we definite are I earlier with want of was over roaming we then what moving into As that the business wholesale. coming the, would mentioning headwind year, will future. as move the that I to are in wholesale do and growth were will say There do as to into - see coming right? into German with away the next penetration, up-selling think was the then in before Akhil, the our I mentioning cable convergence, Because of

Nick Read

have we No, wholesale. considered clearly

like And very I provide into that the wanted in what say does generally wholesale action. we we the we're and would we focused utilization at wholesale about differentiation is, tech, it and to been focused that differentiated at the on high-speeds protects the but bringing Still, high-speeds. still completely of we're asset that arrangement our we've So marketplace.

look maintained. the You in And and say options various are we'll we'll clearly, the as at engage as know, economics let's opportunities and future long acceptable. is consider differentiation always

Maurice Patrick

as and follow just up, are, on since big and a Great, service quick revenues and the so Bloomberg, someone revenues me the at at internet the moment, moment then? the how pinged asked

Margherita Della Valle

have both in fixed can So around around one revenue I is mix. and €XXX the mobile create point. revenues total we the it And mobile. our [AR] on think fixed moment more percentage the and at between The million drag they call service that precise, amount, be but growth

Maurice Patrick

Great, thank you.

Operator

Thank you.

comes Next of please of go question David David, Bank from Lynch. America Merrill ahead. Wright

David Wright

taking portfolio guys, to a management and has was I very side, the Thank think ask question. much, Okay. I wobbled about bit. you once seems the again little like going for it Egypt

And some you strategy. asset did is on the update that of get think about on to quite was things of I significant there. And think ROCE I relating to and to write you fairly to second notable questions just going maybe all, an been, was one intense the has I progress whole of just of with down the that today. portfolio Spain, looking So that that chose as Margherita, review debate the

actual asset PPE You across fairly against right base. now, do goodwill the a of high Group, run intangibles your Vodafone level and

values time the about acquired group these or you years So, capital and ROCE Cable back? holding assets to some significant you picture, goodwill asset the of? of valuation feel it value you more last were, You opportunities some there that some acquired of some does fair amortization some of ago. how the doing as actually of are are you. actually it consider could there & should return know, kind of XX to say, asset actually like you're over that drivers you've I a reconsider analysis? the that get for when potential the of Thank on Wireless Is this instance, So are the are thinking

Nick Read

Egypt STC go have complete. shareholder let two well, very we a diligence needs of Okay, Why? to on an know, And And TE shareholder shareholder, a agreement effectively the be between Egypt, are the with Telecom there on me important quick consideration now them. Egypt. relationship. you due a significant Telecom engaged be forward Because, Clearly, the therefore, agreement. it's is is

that And conversation that's them. they two party will see we of really between the not we're So really progress. a how to

Margherita Della Valle

goodwill we would our on our that on of as, say, follow. it we accounting process I keep the point, And the Committee with we And aligned framework say rules can see to very that following strict will much I need and auditors. Audit

are, So regulators, the very a broader perspective. it's we financial obviously would area don't sure much attention say, driven from it's the by for want and I all any an real, from read it accounting, make into because that just to mechanics balanced of We of considerations. conservative, that perspective

this accounting is and balanced we a what very exercise. really, it's on transparent focusing So are

David Wright

It on following is outlook. of I just Nick if on Spanish the may, little, whole a sort

a Europe, on ago. the return considering? capital began We them insight you're Can well have even you years maybe and Telco's two employed seen even two or have in about looking Spain, major us give at now, talked continued so that away. Okay, the really they sort one they to assets of to into mid-term that little give you deteriorate might trajectory bit more of have just

that giving on these a are assets you us timeline give trajectory, of five-year kind we just you're to you talking, it is deliver? anything more a can can XX-year So, really Is that trajectory? it

Nick Read

over plan, we range When talk years. we're long the talking three five to

horizon So that's we at. time the look

increasingly took, many actions fully side, took appreciate don't we the digital how transformation I and five - think the example, base, an that yet benefit as Spain to I will sometimes but structural of of time terms show the the be sharing the a network For is actions in people forward. sharing, really - year cost network of in think the structural going course we horizon,

our wanted things did we is to which markets, increasingly obvious, Spain, of with the we perspective, wanted that book not that, through book IT do migrate something tariffs. simplify an so we on from your To did and etc. forward the have pricing perspective, you are cost which One business - we to forward to get inside we is other is to adopting base

historical on is where unlimited base we That's pricing. good are on long because the lots of Makes so that pricing, it really legacy today's tariffs, people don't this And important means a now. Spain the have tariffs etc. of is [indiscernible] example

did Yeah, commitment. drive So pricing promos. we an vulnerable we on to less and another in thing that are to today's investment was

in up substantial commitment there's ago. of, step versus on two the So years a base

there's a which we think to forward. make customer seeing I more is the So on of can going number base customer a you're base last actual good build performance, the things quarters, which over five why resilient,

David Wright

thanks lot. Thanks Thank for picture. a healthier guys. younger, Okay, looking you, that

Operator

question James ahead. James, Ratzer from Street. Next New please, of comes go

James Ratzer

you've COVID the encouraging actually what COVID headwinds you specifically, and on And roaming morning. pick from those the then to you good indeed. I impacts. given possible, you're Yes, just the point about I around back, call out EBITDA. what you because go the sounds thank quite of kind impacts around other far please EBITDA very think given, and you've of to phasing much if growth like year We'd guidance BXB. commentary In XX wondering so other Slide was thinking full

think are presentation then German million of was said in I gains. phasing, really synergies from the what it slide, to of about you say you in idea the trying synergy now moment? commentary the And case of later the what €XX So ex-COVID Because noticed I locked-in. the at underlying Unity? in But think wondering in you growth million €XXX about I can talk terms the you EBITDA just get an see

mean that from on to does see we're the Unity synergy here EBITDA? Thank accelerate going So phasing start impact the from actually to you.

Margherita Della Valle

I'll the over already contractual we through we will negotiated, have example, to to establish savings target plans and that then of savings, mean on the in start €XXX XX% come gradually essentially, So when or four James, years, the over a synergies the procurement, the with synergy Liberty these condition will locked-in for over is and the deliver which business deliver those move million, time. five that in From perspective, to talk about having around we EBITDA.

the seen German in in amount year, report - and Germany, will in forward. has contributed going obviously we continue on slide to exact this I the on to the that that think have You the EBITDA,

which very the are we delivered are the the being speed pleased mentioned moment. I at with As at synergies earlier,

of - are the months fantastic execution. about six four done to a multi-year of the to it need five is goal. have to the to out plan, it's months clearly a But years We get job say ahead first there. teams XX final I

of us. we continue think report I a So we again, ahead And on it. to road long will regularly have

I Africa, EBITDA, As far consumers what for as want mentioned around give then this the in something And impacts most for And us the your specifically, of we case that's so other fact potentially in as governments there the constant, in that significant the For roaming? businesses of driving half, from far we crisis. already out because beyond has forward are seen. second has what we that the trends the example, less do on been been question drag a COVID probably the was that volume QX, worse see roaming and from draw support maybe to the is and have of going therefore just earlier, lockdown. support then or to can

the you're packages. this we and are didn't our crisis, I impact we see services called debt, to coming we So to for fact current a to a out significantly, stop thinking going of that Clearly, example, that or material far. that may That's also our But there were think prioritizing if about would in what our have therefore these And expect is performance. businesses be we affect so be to may customers of conscious some also on these from change continue. wanted if call we the need support packages the that out.

James Ratzer

you. Thank

give organic an So growth you in impacts? be would your ex-all you COVID estimate of able what HX EBITDA to think towards

Margherita Della Valle

it's internal and it. ex-roaming visitors. probably well portray to line see a to without I to And as elements on We've adding to it's think you I debates single point in to can I on, always need P&L on the say, to simpler that stay judgment the easier think this. how

the half, from EBITDA minus that drag the was €XXX first seen in have million. X.X% was you roaming So and

under to X%, So just it drag. positive ex have roaming around been would the

lockdowns because in metric will wasn't clearly it also think narrowing impact the it Just look down I as to say, because easiest the at us the only you but affected it it's QX off. this, pull to then

James Ratzer

Thanks much. very Right.

Operator

next question Your go ahead. comes from from Sam please McHugh Sam, Exane.

Sam McHugh

morning, Good guys.

Just on if can. a I Enterprise, one quick

they you growth quarter. So flagged retained the this

market scope and or installing European mobile, see reason [indiscernible]? I where very give great should see deflation of the you KPIs. us could the you do that term? phone. overall on about the Enterprise the that substituting ask for to And Enterprise phones a at look pretty Is increasingly relationship How you've we you confident something the we And are corporates with best just bit you you about markets, of consumer much. Enterprise in phones on growth? when do about is long think medium mobile the maybe that for worry Thanks color think you apps So maybe

Nick Read

question take that's answer. Sam, to hour probably a that could an

Let sort of the capacity, a from of all, to front of first large book have plays big because to strength try small predominantly demand that and to don't more that add we're couple connectivity would wanting And selling. businesses, me we customers large. next upgrade say upgrade But points. products, pull we are wanting seeing generation I legacy and

positive a that's for us. So

European the that differentiated to, another start got footprint, go very We're that's Of a course, conversation. player you we've to edition.

share. definitely I gaining say would So we are

the all can area, the SMEs where have that second substantially, say. in see corporate at business UK it's of all would to housing where take you woken large purely part You about movement EU And so numbers - targeted to And their up small Recovery more up you're to SMEs I digitization of model critical. going space, being digital. Fund see the woken and see

be digitization. SME like in to Italy for first So the many champion There for want example. of the we for vouchers, we is stand more instance, those. And will see

what you at we're leaning if look trend. So is into doing long-term on our that etc., website,

take, we and for going cloud So experience, digital advantage third own forward. an our services. then us that that's digital is And just and the think I'll

do quickly digital is of and to we services, try no, we the said incumbents is, own you in sell very the us, forward. the in of bring best capital products. we front suite anything? that, Well, and need create going foot they get and in solutions. need put of more it's I and partner market, breed it the it a on lower And a total it's What some as best Vodafone think their what have do and those wrap more its cloud with So agile, then around

Margherita Della Valle

nothing No, specifically.

Sam McHugh

you. Thank

Operator

next question The is your open. comes of line Nick, from Delfas Nick Redburn.

Nick Delfas

Indeed. much. Yeah, thanks so

Just one Promoter question me on Scores. Net from

You and what's mentioned country-by-country? going consumer business, much. Scores Promoter maybe particular, very the for Net in in Thanks on

Nick Read

Yeah, am had strong we've COVID because Nick, you asked actually, pleased I what I a we very - response. think

I - and We we think things, it leadership right etc. just was really for think, SMEs that for our were did the acknowledged sector well, generally all sectors. showed I vulnerable

NPS. And time on we've such seen the up step first so ever, for a big

gain. Four, consumer, across both on the six-percentage for Big European we've average, and business a So point seen

immediate we're it. systematic. an everything so, I recognition you So that of it's think landed systematic, been we but Africa often not really you I always get do, delighted think is

Margherita Della Valle

a become markets, riding Because for I Yeah, stage running Europe, point, if for in example, that really certain we I that the fact across our were think Southern look customers. apps digital some we helped. particularly of at actions had were at transformation anchor also, the our our

Nick Read

Yeah.

Margherita Della Valle

and I we across of to app journeys and really we they train to online think strongly. use to in, And go up had the online could also to somehow example, And for that the who just through came could full the were customer refer ease it. top developed when used do customers through app already the

Nick Read

business because And was, were I'd that's of got help me I've ingrained from many what to of reached through from to position and The organized challenge yourself at out very, C-suite final in there of into and a difficulty. Vodafone to big for home. was which them, turn getting working them to really, they in people, so never a home, working help is, customers a speed that's say had us the you say, then us thing lot

Nick Delfas

much. so Thanks

Operator

you. Thank

ahead. Your next question from Deutsche from Robert Robert, please comes Grindle Bank. go

Robert Grindle

the morning CapEx I'd CapEx in terms. transformation, take near last and ago, so year, sharing, be might thank seems that Back then prospect term if cloud, raised might, back that for tower you long to good you a we you. Yeah, on like not full-year HX seeing but to I which Telco lifetime like flagged digital 'XX fall. results but

just maybe revenues, So Thank a at And double follow falling cashing business? next out even exposed quick up for that intensity, raising up we falling could year, the as the if to see whammy post least of triple, capital on on are Nick, David's well? Egypt. - stir spectrum a the question you might for happened that very you.

Margherita Della Valle

free XG well and of clarity that Now, on need which cash executing the Huawei I consideration, from €X the beyond, pleased on into billion whammies and couple I on don't this we would look I a I with progressing the I If let's to year impediments our are maybe rollout you of say we CapEx, no think within we would have of parts. that COVID one can flow are implementation into toolkits FYXX are end, well. moving say, out say we and on guidance call yet. take

there On And the think a you on elements the other see very play. would opportunity turn, will in we'll the This And we are in Vantage. take other if need I cash two Vivek, Vivek at I will growth through total, the think predictable exciting of plans. won't consideration want good want, not opportunities Vodafone. to say those scale of, but in significant take but the end, we in into next flows CapEx will I I CapEx. have of our some of impacts that then generate presentation tomorrow thunder our from steal growth other amount Vantage, you very for the do end, that to be when terms

through. in going First that of up ramp network the of the as a sharing know all, are phase, we you they discussion part were Probably have past, deals. we having

Recovery benefits the the intensity, worth Fund. also the into network see our on then soon. mentioning deals of play capital will And we so coming sharing And EU probably

that a that know portion initiatives. earmarked for or is digital, You for substantial green also of for

Fund. from may have we the European So also opportunities coming

these, our we'll next long range put into plan. Now, all

prepare March three will the like. you on May in will will We and a look plan update years how next new for we

Nick Read

Yeah very and say I player. one that Egypt would number the just quickly, in Robert, we're you know on Egypt that, like

market, other two We XXs. of have high the market about that share in players in XX% the sort

that we more considerable you the than in skewed spectrum So saw auction leadership, others. the

a So in doing what STC. our with market. discussion plan is a was we're spectrum the in long-range of enhances item It leadership and specific extending our

Robert Grindle

Thank you.

Operator

final line question of your Bluestone Jakob, Jakob is comes open. from Suisse. Credit Your

Jakob Bluestone

question. Hi, had leverage within good taking Thanks the the I a morning. for operating business. question on

I about bit You €XXX revenues, obviously But faster and six the increase it look was sort service talked of XX, through realization looks was first other if And I EBITDA. like on is some your a a on running saving by how service than your coming synergy about of the ahead of There's million at and it down decline your EBITDA expected, in projects. and plan of you're other difference a sort the months, huge €XXX lot how costs. about in Slide your by in €XX million revenues now look there's a down the cost between million. if

so got is what be leverage to cost seeing? pressures on that Thank expect maybe broadly, something the you. see that are you're to should these comment other continue? given the you you've various of forward, little operating more And bit expecting we measures pipeline? can you a cost And some in going more And

Margherita Della Valle

costs can that we'll the not some parts. movements. into say the of the more implications be just moving all may I were the that to - Sure, which of would have think had when revenue go details normal Jakob, through me we I reviews direct high But revenue COVID, maybe all have we let say, opportunity intensity movement,

for ones happening So about in therefore margin still because a but equally lockdowns generates if it's have revenues that, the you reciprocal. And revenues intra-European example, which that first are was much in incoming you jump we the very is traffic, Equally, see want, talked not in is ratios roaming which there business. quarter, has and roaming no sudden in but the the costs. normal will roaming which clearly,

little if areas a is actual almost bit which equation have a we we is revenues the missing but you part of which So number the in COVID from us. actual why skewed with numbers OpEx do want a are into of can your minus go numbers front

Jakob Bluestone

Great, you. thank

Nick Read

Vodafone, commercial over momentum back the the of that opportunity with actions last was more the of spend we off that Vodafone. our was I the you coming you demonstrating about weeks. the time myself. We'll that thanking resilience the question, given have to opportunity So, and Look, take taken all joining we of can and have for today strategically our the Margherita have to investors transform

Clearly, to Take into years two are but are strategy at more and dialogue. that long-term but stay speed. progress safe. we making do care look We continued to we forward our

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