Vodafone boss shrugs off Budget as company set to double-down on UK
The boss of the FTSE 100 telecoms giant Vodafone has shrugged off suggestions Labour’s tax-raising Budget will have an impact on the business.
Vodafone chief executive Margherita Della Valle estimated the Budget’s total cost to Vodafone at around £10m in a call with investors and analysts following its half-year results, published this morning.
“In the scheme of things of what we normally manage, it has no major impact,” Della Valle told those on the call.
Vodafone’s UK market was a key bright spot for the group in the first half of its 2025 financial year.
The company reported headline revenue growth of 1.7 per cent across the group, with organic growth of 4.8 per cent in the first half.
The UK was the second-fastest growing market after Turkey in the first half, with revenue up 2.4 per cent on a headline basis. Germany was the worst-performing region. Service revenue declined 3.9 per cent in the half.
Vodafone-Three deal progresses
Vodafone is currently pursuing a merger with Three in the UK, which would combine two of the market’s biggest operators.
The £15bn deal is being investigated by the Competition and Markets Authority (CMA), but recent smoke signals suggest the regulator is inclined to approve the merger.
When asked if post Chancellor Rachel Reeve’s Budget, the UK seems like a less attractive place to spend £15bn on this merger, Della Valle said:
“You are right to point out we’ve made a major choice by deciding to ‘double up’ in the UK but clearly with the intent over time to fully own this company (Three) and in the last 12 months, Vodafone has completely reshaped its position in Europe, making conscious choices around investment”.
On national insurance tax hikes, she said: “It’s not material for us. It will bring no major changes which will affect us”.
De Valle continued: “I am absolutely convinced that the right thing to do for us in the UK is the plan that we have laid out with the merger. The UK has potential as long as we – as a telecoms operator – can have sufficient scale to be effective in the market”.