Vodafone Group Public Limited Company (NASDAQ:VOD) Q1 2024 Earnings Call Transcript July 24, 2023 4:00 AM ET
Company Participants
Margherita Della Valle - Group CEO, CFO and Executive Director
Conference Call Participants
Andrew Lee - Goldman Sachs
James Ratzer - New Street
Ottavio Adorisio - Societe Generale
Polo Tang - UBS
Carl Murdock-Smith - Berenberg
John Karidis - Numis
Nick Delfas - Redburn
Robert Grindle - Deutsche Bank
David Wright - Bank of America Merrill Lynch
Georgios Ierodiaconou - Citigroup
Margherita Della Valle
Good morning, everyone, and thank you for joining me for our First Quarter Update. Before discussing our trading, I'd like to highlight some other news from this morning. You may have seen that we have announced the appointment of Luka Mucic as our new CFO. Luka joins us from SAP, where he was most recently the COO and CFO. I really look forward to welcoming him in September and, of course, having him with us for half 1 in November.
Turning to our Q1 trading update. When I took over, I was clear that Vodafone needed to change to reduce complexity, get back to basics in consumer, reengineer our commercial model in Germany and scale up our business segment.
As we progress our plans to transform Vodafone, I'm pleased to report that we have achieved a better service revenue performance across almost all of our markets in Q1, and we have also reiterated our EBITDAaL and cash flow guidance for the year. We have delivered organic service revenue growth of 3.7% or 1.8%, excluding Turkey. We are back to service revenue growth in Europe, and our performance in Vodafone Business has been particularly strong with service revenue up 4.5% this quarter, supported by strong digital services growth.
In our largest market, Germany, service revenue trends have started to improve, supported by successful price actions in fixed, and we have taken action to drive a better commercial performance in mobile. More broadly, across the company, we have taken the first steps of our action plan focused on customers, simplicity and growth. But of course, with 3 major markets still in negative territory, we know that we have much more still to do.
Question-and-Answer Session
Operator
Thank you, Margherita. We now go to the Q&A. And our first questioner this morning is Andrew Lee from Goldman Sachs. Andrew, if would like to unmute yourself. Thank you, please go ahead.