Vodafone Group CEO Margherita Della Valle has declared that the company will turn around its fortunes in Germany despite reporting more losses in this market.

Indeed, the carrier reported an operating loss of €411 million ($462 million) in the 12 months to March 2025.

Vodafone said this was primarily due to a non-cash impairment charge following writedowns of €4.5 billion ($5bn) in Germany and Romania.

Despite this, Della Valle is confident that the company’s performance in Germany, the biggest market in Europe, will improve.

“Since I set out my plans to transform Vodafone two years ago, Vodafone has changed. We have reshaped Europe, we are seeing the positive impact of our drive for customer satisfaction in all our markets – most noticeably in the UK and Germany – and we have delivered strong operational improvements across the business,” said Della Valle.

“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.”

Since Della Valle took over at the telco two years ago, she’s overseen sales in Spain and Italy as part of the telco’s strategy to consolidate its business.

For the full year 2025, Vodafone increased its revenue by two percent to €37.4 billion ($42.1bn), up from €36.7bn ($41.6bn) the previous year.

The carrier increased its service revenue by 5.1 percent at €30.8bn ($34.92bn), while Adjusted EBITDAaL was 0.8 percent lower at €10.93bn ($12.3bn).

£1.5bn UK network investment

Della also outlined plans to spend £1.5 billion ($2bn) on upgrades to the company’s network this year.

“We will have the best [spectrum], the best network, and the largest customer base in mobile,” said Della Valle during the earnings call.

Vodafone posted a strong financial performance in its home market, reporting revenue of €7.1bn ($8bn), an increase of 3.4 percent, while service revenue jumped 4.5 percent to €5.88bn ($6.67bn).

The company also touched on its proposed merger in the UK with CK Hutchison’s Three, noting that it expects that deal to go through during the first half of the financial year.

Vodafone’s £15bn ($20.1bn) merger with Three was approved by the UK’s Competition and Markets Authority (CMA) in December.

As part of the deal being approved, the two telcos committed to significant network investments, including plans to invest £11 billion ($14.79bn) to upgrade the merged company’s network across the UK.

First announced two years ago, the deal will create the UK’s biggest mobile network operator, with an estimated 29 million customers. It also consolidates the number of network operators from four to three.