Vodafone UK has released its first trading update following its completed merger with Three UK, seeing total revenue increase by 14.5% to €1.9bn for Q1 FY26.
Its service revenue increased by 15.2%, with organic growth in service revenue of 0.9%. The company’s Mobile service revenue grew by 19.6%, and organic growth in mobile service revenue was 0.4%. Fixed service revenue grew by 3.1% and organic growth in fixed service revenue was 2.7%.
Vodafone Business service revenue declined by 0.8%. On an organic basis, Vodafone Business service revenue decreased by 3.0%, which the company attributed to managed services contract terminations and continued mobile ARPU pressure. It states this was partially offset by good demand for fixed connectivity and digital services.
In mobile, Vodafone contract customer base declined by 46,000 in the quarter driven by the timing of large contract disconnections in Business and Three UK Consumer customer losses.
In fixed, Vodafone’s customer base increased by 44,000 in Q1. It now covers 20.3 million households with gigabit speeds.