• H1 Group organic service revenue up 2.3%*; H1 Group revenue down 3.9% to €27.1 billion

  • Q2 organic service revenue growth of 2.4%*, led by improvement in Europe to 1.0%*; AMAP grew 7.1%*

  • H1 Group organic EBITDA growth of 4.3%* to €7.9 billion, supported by strong cost control

  • Breakeven free cash flow (‘FCF’), reflecting lower capital additions and seasonal working capital outflows

  • Non-cash impairment in India of €5.0 billion, net of tax, due to increased competition

  • Full year guidance narrowed: EBITDA now €15.7-€16.1 billion (3-6% organic growth), FCF at least €4.0 billion

  • Interim dividend per share of 4.74 eurocents, up 1.9% based on the 31 March 2016 year-end conversion rate 

  • Good momentum in strategic growth areas:
    • Data traffic growth remains robust at 61% across the Group. European mobile contract ARPU stabilising following successful ‘more-for-more’ propositions, supporting an improvement in consumer mobile
    • Unified Communications: 675,000 broadband net additions during the half year, fastest growing broadband provider in Europe across a footprint of 82.1 million homes (30.7 million on-net)
    • Enterprise out performance continues, 3.3%* service revenue growth in Q2
  • Consumer net promoter score (NPS) improvement in 11 markets year-on-year; leader or co-leader in 18 out of the 21 markets that we track, with an average 13 point gap over third-placed operators (up 1 point year-on-year)
  • EBITDA growing faster than revenue in 19 out of 26 markets as cost efficiencies boost operational leverage
  • 100% of targeted cost and capex synergy run rate achieved at Kabel Deutschland, six months ahead of schedule
  • On track to complete the JV with Ziggo in the Netherlands around the end of 2016

Vittorio Colao, Group Chief Executive, commented:

‘We have further improved our performance during the first half of the financial year with Europe modestly ahead of our expectations - led by Germany and Italy - and good execution in AMAP. Our substantial network investments and ‘more-for-more’ propositions have allowed us to capture opportunities from strong data demand, supporting European mobile contract ARPU and continued growth in emerging markets. As Europe’s fastest-growing broadband operator, we are driving rapid uptake of our consumer fixed and TV services while our wholly converged Enterprise business continues to outperform its peers. We are now translating faster revenue growth into margin expansion, supported by our focus on cost efficiency.

Competition in India has increased in the year, reducing revenue growth and profitability. We have responded to this changing competitive environment by strengthening our data and voice commercial offers and by focusing our participation in the recent spectrum auction on acquiring frequencies in the more successful and profitable areas of the country.

Overall, we expect to sustain our underlying performance in the second half of the year and remain on track to meet our full-year objectives despite macroeconomic uncertainties. This performance allows for improved returns to our shareholders, as reflected by the growth in the interim dividend.’

For further information:

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Telephone: +44 7919 990230

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* All amounts in this document marked with an “*” represent organic growth which presents performance on a comparable basis, both in terms of merger and acquisition activity and movements in foreign exchange rates. “Change at constant exchange rates” presents performance on a comparable basis in terms of foreign exchange rates only. Organic growth and change at constant exchange rates are alternative performance measures. See “Alternative performance measures” on page 39 for further details and reconciliations to the respective closest equivalent GAAP measure.

1. With effect from 1 April 2016, the Group’s presentation currency was changed from pounds sterling to the euro to better align with the geographic split of the Group’s operations. The results for the half year ended 30 September 2015 have been restated into euros. Group revenue includes the regional results of Europe, AMAP, Other (which includes the results of partner market activities) and eliminations.

2. Six months ended 30 September 2016 includes a gross impairment charge of €6,375 million (2015: €nil) recorded in respect of the Group’s investment in India, which together with the recognition of an associated €1,375 million deferred tax asset, led to an overall €5.0 billion reduction in the carrying value of Vodafone India. See Note 3 “Impairment review” for further details.

3. The interim dividend for the six months ended 30 September 2015 has been restated to euro cents using the 31 March 2016 rate of £1:€1.2647. See page 20 “Dividends” for further details.

4. Alternative performance measures are non-GAAP measures that are presented to provide readers with additional financial information that is regularly reviewed by management and should not be viewed in isolation or as an alternative to the equivalent GAAP measure. See “Alternative performance measures” on page 39 for reconciliations to the closest respective equivalent GAAP measure and “Definition of terms” on page 50 for further details.