Vodafone’s UK mobile contract base fell by 46,000 in the first quarter of its financial year 2026, mainly due to disconnections in the business segment and customer losses to Three.
However, its fixed broadband base grew by 44,000, expanding gigabit coverage to over 20 million UK households.
The company reported subdued organic growth in its UK operations as it begins consolidating the newly merged entity, VodafoneThree, which now serves 28.8 million customers.
Mobile service revenue rose 19.6 per cent year-on-year to £1.06 billion on a reported basis, though organic growth slowed to just 0.4 per cent. Vodafone attributed the weaker growth to reduced pricing benefits and a lower average revenue per user (ARPU) due to the customer mix brought in from Three.
Fixed service revenue increased by 3.1 per cent to £337 million, with organic growth of 2.7 per cent, driven by strong performance in the consumer segment.
Vodafone Business service revenue declined by 0.8% to £440 million, reflecting planned contract exits and lower ARPU.
Total UK revenue rose 14.5 per cent year-on-year to £1.64 billion, largely due to the inclusion of Three UK’s financials following the merger completion on May 31. Reported service revenue grew by 15.2 per cent to £1.40 billion, though organic service revenue growth slowed to 0.9 per cent, down from 3.1 per cent in the previous quarter.
Within two weeks of launch, spectrum sharing led to a 40 per cent increase in 4G speeds for seven million customers, with further improvements in coverage expected by year-end.