Vodafone reports UK growth as £15bn Three merger nears completion

Vodafone has reported a notable rebound in UK revenues, with organic service revenue growth climbing to 3.3% in its third quarter, up from 1.2% previously, largely attributed to significant investments in customer experience. The company anticipates finalizing its £15 billion merger with Three UK in the coming months, which is expected to create the largest mobile operator in the UK, serving around 27 million customers. However, Vodafone's performance in Germany, its largest market, deteriorated with total sales dropping by 7.6% and service revenues falling by 6.4%, impacted by regulatory changes. Group CEO Margherita Della Valle expressed confidence in achieving full-year growth targets despite the challenges in Germany. The overall group's revenue increased by 5% to €9.8 billion, surpassing expectations, as the positive results in the UK bolstered performance. This merger is viewed as a crucial component of Vodafone's strategy to reshape and rejuvenate the company.