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Vodafone Q1 Organic Service Revenue Down 0.2%; Affirms Full Year Guidance

Vodafone Group Plc (VOD.L,VOD) reported that its first-quarter Group revenue declined 2.3% to 10.65 billion euros due to foreign exchange rate effects. First-quarter organic service revenue declined 0.2%.

Vodafone Group said trading during the first quarter was in line with management's expectations underlying fiscal 2020 outlook. The Group is confident in its full year guidance of: adjusted EBITDA of 13.8 billion euros - 14.2 billion euros, and free cash flow (pre-spectrum) of at least 5.4 billion euros.

Nick Read, Group Chief Executive, said: "Our service revenue growth improved during the first quarter, led by Italy, and mobile churn fell to another record low. Following a significant quarter of commercial activity, we expect the gradual recovery in our service revenues to continue, underpinning our financial outlook for the year."

Separately, Vodafone Group Plc said it is proceeding with plans to monetise a substantial proportion of its European tower infrastructure during the next 18 months. Vodafone will legally separate its passive tower assets to create a new TowerCo, which will be operational by May 2020. Vodafone plans to monetise TowerCo with an IPO or disposal of a minority stake in TowerCo. The Group will use the proceeds to reduce debt.

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