Vodafone has increased its annual cost-saving target for its UK operations, now expecting VodafoneThree to achieve £1bn in annual savings by 2032. This represents an upgrade from the prior target of £700m by 2030.
The revised target follows Vodafone's completion of a £4.3bn buyout of CK Hutchison’s remaining 49 per cent stake in the business just over two months ago, giving it full control of the mobile operator. Vodafone has also set new financial targets for the merged company, including mid-to-high single-digit annual growth in adjusted earnings and plans to more than triple operating free cash flow between 2025 and 2032.
Chief executive Margherita Della Valle stated that the group has gained greater confidence in the merger's financial potential after a strong start. The additional savings are expected to come from combining and streamlining mobile networks, alongside efficiencies from Vodafone's full ownership.
These new targets are part of VodafoneThree’s broader £11bn investment programme, aimed at improving mobile coverage and building a next-generation 5G network across the UK over the next decade. The company also reported record-low customer churn and rising average revenue per customer since the merger.