Key facts
- VodafoneThree's annual cost-saving target has been raised to £1 billion by 2032.
- The previous target was £700 million by 2030.
- The company expects to deliver £800 million in savings by 2030.
- VodafoneThree aims for mid-to-high single-digit annual growth in adjusted earnings between 2025 and 2032.
- Operating free cash flow is projected to more than triple by 2032.
- Vodafone is investing £11 billion over 10 years in its UK mobile network.
Vodafone has increased its annual cost-saving target for its UK business, VodafoneThree, to £1 billion by 2032. This revised goal, up from a previous target of £700 million by 2030, reflects anticipated benefits from network rationalization and full group ownership following the merger of Vodafone UK and Three UK.
The company now expects VodafoneThree to deliver £1 billion of annual savings by 2032, including £800 million by 2030. Vodafone stated that the higher savings target is due to further benefits from network rationalization, advantages from full Group ownership, and potential additional revenue synergies from the merger.
VodafoneThree is targeting mid-to-high single-digit annual growth in adjusted earnings before interest, tax, depreciation, amortisation and lease costs between 2025 and 2032. Operating free cash flow, defined as adjusted earnings less capital additions, is expected to more than triple from its 2025 level by 2032.
As part of its strategy, Vodafone is investing £11 billion over 10 years to build what it aims to be the UK’s leading mobile network, including the development of a next-generation standalone 5G network. VodafoneThree is targeting 99% standalone 5G population coverage by 2030 and 99.96% by 2034.
Chief executive Margherita Della Valle indicated that the stronger start to the combined business has increased confidence in VodafoneThree’s ability to contribute to the wider group’s medium-term cash flow growth.