The impact of Germany's revised TV law on Vodafone appears to be lessening. The company's German operations, which experienced a 6% decline in Q4, saw a smaller 3.2% decrease in Q1. This improvement is attributed to strategic adjustments.
A key factor in this recovery is the 28,000 increase in TV customers. This follows a loss of 81,000 in the previous quarter, and comes after Vodafone's decision to bundle basic TV services with broadband packages. While this growth is encouraging, it's partially offset by a continued decline in demand for standalone linear TV services. The new law grants tenants in Multiple Dwelling Units (MDUs) the right to select their own TV and broadband providers, significantly impacting the market.
Meanwhile, the UK saw a 0.9% rise in service revenue during Q1, driven by growth in Consumer and Wholesale sectors. Group Chief Executive Margherita Della Valle commented on the overall performance, stating: “We have had a good start to the year with strong revenue and EBITDA growth. Germany has started its improvement trajectory and our emerging markets are delivering strong broad-based growth. In the UK, we have completed the merger with Three and are moving quickly to combine our networks to benefit customers.” Group total revenue saw a 3.9% increase, reaching €9.4 billion in Q1, fueled by robust service revenue growth.