Vodafone Group Public Limited Company (VOD): BCG Matrix [Dec-2025 Updated]

You're looking for a clear-eyed view of where Vodafone Group Public Limited Company (VOD) is actually generating and consuming cash as of late 2025, especially after the big portfolio clean-up. We've mapped their core business units to the BCG Matrix, showing that while Africa's Vodacom operations are clear Stars, posting 11.3% organic service revenue growth, and Germany remains a Cash Cow with a 36.0% Adjusted EBITDAaL margin, the real action is in the Question Marks like the combined UK/Three entity, which faces a short-term €200 million Adjusted FCF drag. Let's cut through the noise and see exactly which units are funding the future-supported by the Group's €2.5 billion in Adjusted Free Cash Flow-and which ones we've rightly put out to pasture, like the divested Spain and Italy assets.

Background of Vodafone Group Public Limited Company (VOD)

You're looking at Vodafone Group Public Limited Company (VOD), which is a major British multinational telecommunications company. Its global headquarters and registered office are situated in Newbury, Berkshire, England. Honestly, Vodafone's footprint is quite broad, operating services predominantly across Europe and Africa, though it also has interests in Asia and Oceania. As of early 2025, the company managed to run its own networks in 15 countries, while also maintaining partner networks in another 46 nations worldwide.

The company has been busy reshaping its European presence to focus on markets with strong local scale, which involved some significant transactions through the fiscal year ending March 2025. For instance, Vodafone completed the sale of Vodafone Spain in May 2024, bringing in €4.1 billion in cash plus €0.9 billion in preference shares, and it also divested its Italian operations. A massive move for its home market was the completion of the merger between Vodafone UK and Three UK on May 31, 2025, creating the country's largest mobile network.

On the growth front, Vodafone is leaning heavily into digital and African markets. In Africa, the company is increasing its influence over Safaricom in Kenya, aiming to integrate operational strategies and strengthen its mobile money platform, M-Pesa. This focus on digital is paying off in the business segment; B2B digital services have grown by 26.1% over the last two years, and its financial services customers now number 88 million. The company serves 17 million organizations globally through its networks, including 5.0 million Business Customers.

Looking at the numbers from the Fiscal Year 2025 (FY25) results, the total revenue came in at €37.4 billion, with Group organic service revenue growing by 5.1% for the year. The Adjusted free cash flow for FY25 was reported at €2.5 billion, supporting a rebased full-year dividend of 4.5c eurocents per share. Keep in mind that as of 2023, the company's net debt was roughly €33.4 billion, which these recent asset sales were partly intended to address. The total number of employees across Vodafone Group Public Limited Company was 87,205 as of the latest reports.

Vodafone Group Public Limited Company (VOD) - BCG Matrix: Stars

The Star quadrant represents business units or products within Vodafone Group Public Limited Company (VOD) that command a high market share in markets characterized by high growth. These units are the current leaders and require substantial investment to maintain their growth trajectory and market position, with the potential to mature into Cash Cows as market growth decelerates.

The Africa operations, primarily under Vodacom Group, stand out as a key Star, demonstrating significant top-line momentum in the fiscal year ending March 2025 (FY25). This segment is a clear leader in its high-growth regional markets, necessitating continued capital deployment to secure future dominance.

The financial performance metrics for the Africa operations in FY25 are as follows:

The M-Pesa mobile money platform is another critical Star, functioning as a dominant fintech player across its regions, particularly in East Africa. Its scale and the high transaction volumes it supports make it a vital growth engine, though its cash consumption for expansion and feature development is significant.

Key statistics related to the scale of the financial services ecosystem, which includes M-Pesa, are:

• Financial services customers across Vodacom: 88 million.
• M-Pesa revenue growth in Vodacom international markets (FY25): 10.0%.
• M-Pesa revenue as a percentage of service revenue in Vodacom international markets (FY25): 27.6%.

Türkiye is exhibiting exceptional growth, positioning it as a Star despite operating in a hyperinflationary environment. The reported organic service revenue growth for FY25 clearly signals strong market share gains and commercial success, even when accounting for the complexities of hyperinflationary accounting standards.

The exceptional performance in Türkiye for FY25 is quantified by:

Core mobile data and connectivity services in high-growth African markets, such as Egypt, are also classified as Stars. These markets show strong demand, allowing Vodafone Group Public Limited Company (VOD) to implement effective price actions while continuing to grow its customer base. Egypt, for instance, saw significant customer additions and strong revenue growth well above inflation.

Specific data points illustrating the growth in the Egyptian market for FY25 include:

• New contract customers won in Egypt (FY25): 656,000.
• Total mobile customers in Egypt (FY25): 51.5 million.
• Vodafone Cash active users (FY25): 11.4 million.
• Vodafone Cash revenue growth (FY25): 18.8%.

Vodafone Group Public Limited Company (VOD) - BCG Matrix: Cash Cows

You're looking at the established, high-market-share businesses within Vodafone Group Public Limited Company (VOD) that are reliably funding the rest of the portfolio. These are the Cash Cows, and in FY25, Germany and the UK stand out as prime examples, even with their respective market challenges.

The German operation, which remains a core fixed and mobile connectivity anchor, generated €12.2 billion in revenue in FY25. That's a massive base. Even with the regulatory headwinds you know about, the German operations maintained a high Adjusted EBITDAaL margin of 36.0% in FY25. That margin is what keeps the cash flowing, despite the reported revenue decline in that market.

Also in this quadrant, you have the UK operations (pre-merger), which brought in €7.1 billion in FY25 revenue. This established market showed moderate traction with 1.9% organic service revenue growth for the year. These two markets, by virtue of their scale and established position, are the engine room.

The overall strength of these mature assets is reflected in the Group's ability to generate €2.5 billion in Adjusted Free Cash Flow in FY25. This cash is critical; it's what supports shareholder returns, like the full-year dividend of 4.5 eurocents per share declared for FY25. It also covers the administrative costs and funds investment elsewhere.

Here's a quick look at the core financial contribution from these two major European units in FY25:

The strategy here isn't about aggressive top-line spending; it's about efficiency. You want to see investments focused on infrastructure support to maintain that high margin and cash flow, not necessarily on broad consumer promotions.

The key takeaways on the cash generation side are:

• Group Adjusted Free Cash Flow for FY25 reached €2.5 billion.
• Germany's Adjusted EBITDAaL was €4,384 million.
• UK's Adjusted EBITDAaL was €1,558 million.
• The Group's overall reported revenue was €37,448 million in FY25.

Companies strive for these units because they reliably convert market share into distributable cash. If onboarding takes 14+ days, churn risk rises, but these established units are built for stability, not speed.

Vodafone Group Public Limited Company (VOD) - BCG Matrix: Dogs

The Dogs quadrant in the Boston Consulting Group Matrix represents business units or assets characterized by low market share in low-growth markets. These units typically consume management attention and capital without generating significant returns, making them prime candidates for divestiture or minimization. For Vodafone Group Public Limited Company (VOD), several areas fit this profile as of the fiscal year 2025 (FY25).

German Fixed-Line/Cable TV Segment Under MDU Law Change

The German fixed-line segment has been severely impacted by regulatory changes concerning Multi-Dwelling Unit (MDU) TV contracts. This specific area exemplifies a low-growth/declining market share scenario due to external factors. Fixed service revenue in Germany for FY25 saw a decline of 8.1%. This decline was heavily influenced by the MDU law change, which came into full effect from July 2024. The MDU transition alone had a 5.5 percentage point impact on fixed service revenue growth in Q4 of FY25. The overall service revenue for Vodafone Germany declined by 5.0% in FY25.

Here's a quick look at the German operation's FY25 performance, which highlights the drag these units create:

The Adjusted EBITDAaL margin for Germany compressed to 36.0% in FY25 from 38.7% in FY24, with the MDU law change contributing a 7.5 percentage point negative impact to the Adjusted EBITDAaL decline.

Legacy Copper-Based Fixed Broadband Services

Across Europe, the reliance on legacy copper-based fixed broadband services represents a structural decline as the industry shifts to fiber. This is evident in customer losses in key markets. In Germany alone, Vodafone lost 102,000 broadband customers in the fiscal year 2025, ending the year with a total base of 10.118 million. This loss contributed to the fixed service revenue decline mentioned above. The trend of decommissioning legacy copper networks is gaining momentum across Europe.

Non-Core, Low-Return Assets Divested

The confirmation of non-strategic, low-return status for certain European operations is best illustrated by their sale, which generated substantial cash proceeds. The disposal of Vodafone Spain was completed on 31 May 2024 for €4.1 billion in cash (subject to adjustments), following an announcement of a €5 billion deal value in October 2023. The sale of Vodafone Italy to Swisscom was completed on 31 December 2024 for €8 billion in upfront cash proceeds. Together, these transactions delivered approximately €12 billion in upfront cash proceeds, signaling a clear strategic move away from these units.

Traditional Prepaid Voice Services Pressure

In mature European markets, traditional prepaid voice services face continuous pressure, leading to customer losses and ARPU erosion. Mobile service revenue for Vodafone Group declined by 1.2% in FY25, which management attributed to ARPU pressure due to higher competitive intensity in the market. This pressure results in the ongoing dilution of the back book from front book pricing actions. The prepaid market specifically saw a net loss of 909,000 customers over the year in Germany, although the overall mobile customer base was impacted by various factors.

The characteristics of these units align with the Dog quadrant:

• German fixed-line service revenue decline of -8.1% in FY25.
• German broadband customer base decline of 102,000 in FY25.
• Mobile service revenue decline of 1.2% due to ARPU pressure in FY25.
• Spain sale proceeds: €5 billion (total deal value).
• Italy sale proceeds: €8 billion upfront cash.

Finance: review the remaining European fixed assets for potential capital intensity reduction by end of Q1 FY26.

Vodafone Group Public Limited Company (VOD) - BCG Matrix: Question Marks

You're looking at business units that are in high-growth markets but haven't yet secured a dominant position. These are the cash consumers, the ones that require significant capital to fight for future market share, so they currently lose the company money. The key is deciding whether to pour in more cash to make them Stars or to cut bait.

Vodafone Business Digital Services (Cloud, IoT, Security)

The Digital Services portfolio within Vodafone Business is definitely in a high-growth segment, but its overall contribution to the Group's total service revenue remains relatively small, positioning it as a classic Question Mark. Cloud services, a key component, showed strong momentum, with revenue growing by 15.1% in FY25. Digital services revenue growth accelerated at 13.8% in FY25, and these digital capabilities represented 21% of Business service revenue in Q4. To be fair, the Cloud portfolio specifically saw year-over-year growth of 23% in Q4. The Internet of Things (IoT) segment is also expanding, with connections reaching 205 million, marking a 4.5% increase year-over-year. Vodafone Business overall delivered organic service revenue growth of 4.0% in FY25, with B2B digital services up 26.1% over the last two years.

Here's a quick look at the scale of the digital push:

• Digital services represented 21% of Business service revenue in Q4 FY25.
• Cloud services revenue grew 15.1% in FY25.
• IoT connections stood at 205 million connections.
• B2B digital services growth over two years is 26.1%.

The Combined Vodafone UK/Three UK Entity (VodafoneThree)

The merger of Vodafone UK and Three UK, which completed on 31 May 2025, creates a new entity with significant potential market share, but it comes with immediate financial strain. This new structure is expected to create a short-term drag on the Group's cash flow. Management guided for around €200 million of Adjusted FCF drag in FY25-26, driven by frontloaded network buildout investments and integration costs. The combined entity plans to invest £1.3 billion (€1.5 billion) in capital expenditure in its first year of operation to accelerate network deployment. While the integration is costly now, the merged business is projected to contribute an estimated €400 million in Adjusted EBITDAaL, pro forma, in FY25-26.

The immediate financial picture for the merged entity, based on unaudited pro forma FY25 results, shows the scale of the combined operation, though margins are thinner than the Group average:

New 5G Rollout in African Markets like Egypt

The strategic push into new 5G technology in markets like Egypt requires substantial upfront capital expenditure to secure and deploy spectrum, fitting the Question Mark profile perfectly. Vodafone Egypt officially concluded the acquisition of its 5G licence at a price of US$150 million, in addition to US$17 million paid for the renewal of its existing licences. The launch of 5G services was planned for by April 2025. To support this, in November 2024, Vodafone Egypt and Telecom Egypt signed a USD 609 million infrastructure agreement. Vodafone Egypt, which holds a 43% revenue market share and serves 43 million customers, saw its service revenue reach R13.0 billion in the current reporting period. This investment is necessary to compete for dominant share in a market where 5G is new.

Strategic Push into New Enterprise Platforms and Partnerships

Vodafone is actively pursuing growth by developing new enterprise capabilities, such as a new cloud-native security service leveraging Google Cloud's Security Operations platform. This represents a high-growth area, aiming to be the digital partner of choice for enterprise and governments, but its market share dominance is yet to be proven. These initiatives are part of the broader digital services expansion, which saw strong growth, but the specific revenue contribution and market penetration for these newest platforms are still emerging, meaning they consume cash while fighting for initial adoption.

The focus is clear:

• Develop a new cloud-native security service.
• Leverage partnerships like the one with Google Cloud.
• Aim to be the digital partner of choice for enterprise.

Finance: draft 13-week cash view by Friday.