Vodafone Group has commenced its latest share repurchase initiative, acquiring 27.1 million shares this week as the company seeks to bolster shareholder returns. The stock recovered 1.47% to close at 110.6 pence on Friday, partially offsetting a 4.68% decline from the previous session.
German Market Performance Under Scrutiny
Market attention remains firmly fixed on Vodafone's German operations, which contribute approximately 32% of total service revenue. The company's third-quarter results revealed modest 0.7% growth in Germany, while group service revenue expanded by 5.4% overall. Adjusted EBITDAaL, Vodafone's primary earnings metric, increased by 2.3% on an organic basis.
Chief Executive Margherita Della Valle acknowledged the "fiercely competitive" German landscape while emphasizing ongoing improvements in customer experience. The company maintained its full-year guidance, indicating it remains positioned toward the upper range of its forecast.
Buyback Program Details
The repurchase program, which began on February 5 and will conclude by May 11, is being executed by Goldman Sachs International. Purchased shares will be held in treasury for eventual cancellation or allocation to employee incentive programs. Daily disclosure of buyback activity may influence trading patterns in the coming sessions.
Analysts note that while the buyback provides temporary support for the share price, sustainable valuation improvement depends on operational recovery in key markets. The UK segment reported a 0.5% decline in service revenue, though Vodafone continues to advance network upgrades and pursue regulatory approval for its proposed merger with Three.
Investors will monitor Germany's service revenue trajectory closely, particularly whether growth can accelerate without excessive discounting. Vodafone's next major corporate update is scheduled for May 12 with the release of full-year results.