Vodafone share price rose in London on Tuesday after the company published encouraging results and launched its buyback program. VOD stock soared to a high of 72.5p, up by 15% from its lowest point this year.
Vodafone share price rises after share buyback launch
Vodafone’s share price jumped after the company released its financial results for the 2025 financial year on Tuesday.
A key part of its numbers is that the company launched a plan to repurchase shares worth €2 billion, a sizable amount for a company valued at around $24 billion or £17 billion.
Share repurchases benefit investors by reducing the number of shares in circulation, which in turn leads to a higher earnings per share (EPS). In this, investors will typically receive more money when a company pays its dividends.
Vodafone’s revenues rose by 2% in the last financial year to €37.4 billion as its turnaround efforts continued to work. Its service revenue rose by 2.8% to €30.7 billion, while the other segment deteriorated to €6.69 billion.
The company also received €13.3 billion in proceeds after selling its Italian and Spanish businesses. It also continued disposing of its stake in Vantage, the publicly traded cell tower company it spun out a few years ago. In a statement, CEO Margherita Della Valle said:
“Looking ahead, we expect to see broad-based momentum across Europe and Africa, and for Germany to return to top-line growth during this year. This is reflected in our guidance for profit and cash flow growth for the year ahead.”
Read more: Top FTSE 100 shares to watch: Vodafone, ICG, BT Group, EasyJet
Germany business to resume its growth
The company now expects that its crucial German business will return to growth this year after its revenue fell by 5% in FY25. This slowdown happened because of the MDU TV switching law that gave tenants in multiple dwelling units to choose their own TV and broadband providers.
Other parts of Vodafone’s business did well in the last financial year. The UK organic service revenue rose by 1.9%, a trend that may continue this year following its merger with Three. Vodafone’s revenue grew in other parts of Europe and in Africa.
The management hopes that its business will continue growing this year. For example, the guidance is that its adjusted EBITDAaL will be between €11 billion and €11.3 billion, a slight increase from the €11 billion it made last year.
The company also sees its adjusted free cash flow being between €2.6 and €2.8 billion, higher than the previous €2.5 billion.
Vodafone’s management hopes that the turnaround efforts made in the last two years will pay off. These strategies have involved laying off 10,000 workers and selling its business in key countries like Spain and Italy.
The company also hopes that these efforts will make its dividend more stable and attractive. It has a dividend yield of about 7.50%, much higher than that of other companies in the FTSE 100 Index.
Read more: Vodafone share price rally has stalled: buy, sell, or hold?
Vodafone stock price technical analysis
The weekly chart shows that the VOD share price has remained in a tight range in the past few months. It has formed a symmetrical triangle pattern whose two lines are about to converge. A bullish or bearish breakdown typically happens when this convergence nears.
The MACD indicator has moved above the zero line, while the Relative Strength Index (RSI) has moved above the neutral point at 50.
Therefore, the Vodafone share price will likely have a bullish breakout as investors target the key resistance point at 80.95p, the highest swing on May 2nd 2023. A move below the support at 67p will invalidate the bullish outlook.
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