Vodafone Sees Growth Surge as UK Merger with Three Begins to Yield Results
Vodafone has started Q1 2025 with a bang, showing strong growth that catches the eye. The company reported a 5.5% rise in group organic service revenue, hitting €7.9 billion, while total revenue reached €9.4 billion. This success ties closely to the Vodafone-Three merger, finalized in May 2025, making Vodafone Three the UK’s top mobile operator with 28.8 million customers.
This merger brings big wins, like a 20% average 4G speed boost for 7 million Three UK customers, with some seeing up to 40% faster speeds. Vodafone owns 51% of this new giant, while CK Hutchison Holdings holds 49%, setting the stage for a decade-long £11 billion investment in 5G coverage.
We see these moves driving Vodafone forward, impacting both customers and the stock market.
Vodafone’s Q1 2025 Results Show Promise
Vodafone kicked off Q1 2025 with solid numbers that prove its strength. Group organic service revenue grew by 5.5% to €7.9 billion, and total revenue hit €9.4 billion. Africa led the charge with a 13.8% jump in organic service revenue, while Germany saw a 3.2% drop in service revenue, though it still managed a 0.9% organic gain.
These figures tell us Vodafone balances growth and challenges well. The company also confirmed that its full-year goals for profit and cash flow remain on track. This mix of results paints a picture of steady progress across Europe and Africa.
Breaking Down the Vodafone-Three Merger
- The Vodafone-Three merger was finalized in May 2025, creating VodafoneThree.
- The new entity serves 28.8 million customers in the UK.
- Ownership split: Vodafone holds 51%, CK Hutchison Holdings owns 49%.
- The merger includes a planned £11 billion investment to achieve 99.95% 5G coverage across the UK by 2034.
- Three UK users, around 7 million people, are already seeing benefits with a 20% average speed boost on 4G; some users report up to 40% faster speeds.
- In Q1 FY26, VodafoneThree reported 14.5% revenue growth and 4.9% adjusted EBITDAAL growth.
- Challenges include increasing debt levels and scrutiny from regulators like the CMA and Ofcom.
- Despite hurdles, Vodafone is now positioned as a dominant force in the UK mobile market.
How Vodafone Moves Affect the Stock Market
Vodafone’s growth and merger success ripple into the stock market. A 5.5% revenue rise and a booming 13.8% growth in Africa signal a company on the rise. Investors notice when a firm posts numbers like these.
The £11 billion 5G pledge adds more fuel. It shows Vodafone’s plans for the long haul, which often draws stock market interest. Becoming the UK’s biggest mobile operator through VodafoneThree boosts its edge, hinting at bigger profits ahead.
Challenges linger, though. Debt from the merger and regulatory eyes could rattle some investors. Yet, the stock market often rewards bold growth, and Vodafone delivers plenty to watch.
Key Numbers at a Glance
We pulled Vodafone’s standout figures into a table for clarity. These stats highlight where the company shines and where it faces tests.

This snapshot shows Vodafone’s strengths, like Africa’s surge, and areas to watch, like Germany’s dip.
What Customers Gain from VodafoneThree
The merger isn’t just about numbers; it helps people, too. Three UK’s 7 million customers now enjoy faster 4G, with a 20% average boost and peaks at 40%. That’s real value for everyday phone users.
The £11 billion 5G plan aims for 99.95% coverage by 2034. This means better calls, quicker downloads, and stronger signals for nearly everyone in the UK. VodafoneThree’s early wins, like 14.5% revenue growth in Q1 FY26, prove it’s not just talk.
Stock Market Outlook for Vodafone
Investors weigh Vodafone’s story with care. Strong revenue and a top spot in the UK suggest a stock market lift. The 5.5% growth and Africa’s 13.8% rise paint a bright picture.
But risks matter too. Debt from the merger and rules from the CMA and Ofcom could slow things down. Still, Vodafone’s big moves, like the £11 billion 5G push, signal a stock worth watching in the stock market.
Final Thoughts
Vodafone stands tall with its Q1 2025 wins and the Vodafone-Three merger. Growth in revenue and a bold £11 billion 5G plan show a company ready for the future. For the stock market, Vodafone offers a mix of promise and caution worth tracking.
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This content is for informational purposes only and not financial advice. Always conduct your research.