Vodafone Shares Fall After Revenue Disappoints, Dragged by Turkey Weakness

By Najat Kantouar

Vodafone shares fell after the telecommunications company's fiscal third-quarter revenue missed market expectations, dragged by a weak performance in Turkey.

London-listed shares were down 5.3% at 108.25 pence in early trading on Thursday. In the year to date, shares are up by around 10%.

Vodafone said revenue for the three months through Dec. 31 rose to 10.45 billion euros ($12.34 billion) from 9.81 billion euros for the same period a year earlier. That missed analysts' expectations of 10.76 billion euros, according to a Visible Alpha consensus.

Revenue in Turkey on a reported basis fell 14.5% to 823 million euros, while service revenue--a closely watched metric in the industry--declined 13.5% to 671 million euros. At group level, service revenue increased to 8.51 billion euros from 7.93 billion euros.

Weakness in the Turkish lira is weighing on euro-dominated growth, marking a significant shift given that Turkey had been the main driver of group profits over the past 18 months, Morgan Stanley analysts wrote in a note to clients.

Meanwhile, Vodafone's group adjusted earnings before interest, taxes, depreciation and amortization and after lease expenses slipped to 2.82 billion euros from 2.83 billion euros a year earlier.

The company reiterated its fiscal 2026 guidance, continuing to expect performance at the upper end of its forecast ranges. Adjusted EbitdaaL is projected at between 11.3 billion and 11.6 billion euros, while adjusted free cash flow is expected between 2.4 billion and 2.6 billion euros.

Write to Najat Kantouar at najat.kantouar@wsj.com

(END) Dow Jones Newswires

February 05, 2026 04:56 ET (09:56 GMT)