Vodafone share price remains in a bull market as Margherita Della Valle’s turnaround strategy starts to pay off. VOD jumped to a high of 116p this week, up by over 110% from its lowest level in 2024. This rally means that it has done better than other telecom companies in the region.

Vodafone launches buyback as the German business grows

In a report today, Feb. 5, Vodafone said that its German service revenue continued growing in the last quarter. It rose by 2% to €2.72 billion, continuing a trajectory that started earlier last year. This growth was offset by the weakness in its other revenue, which moved to €366 million from the previous €384 million. 

The UK business also continued doing well, with the service revenue rising to €1.9 billion. This growth was largely because of its Three merger, which made it a top carrier in the industry. 

Other regions, like Africa and the rest of Europe, continued the recovery. As a result, its total revenue from €9.8 billion to over €10.4 billion. 

There were other bright spots in its business, including its Kenyan business, where its M-Pesa revenue jumped by 24.6% to over €133 million. This growth will likely continue once Vodacom completes the acquisition of 20% stake in Safaricom from the Kenyan government. 

Vodafone, through Vodacom, will own 55% of Safaricom, giving it more access to M-Pesa, one of the biggest fintech players in Africa. Safaricom has also become the biggest data company in Kenya and has no major competitor. 

Vodafone’s profitability also did well, with the EBITDAaL rising by 2.3% to €2.8 billion. It has now completed its €3.5 billion share repurchase program and is starting a new €500 million.

Vodafone has been implementing its turnaround strategy in the past few years. As part of this approach, it exited some key countries like Spain and Italy. It sold its Spanish business to Zegona and its Italian business to Swisscom in a €8 billion deal. 

It did that to modernize its operations and focus on the most profitable markets. At the same time, it acquired Three, in a deal aimed at boosting its market share in the UK.

Vodafone share price technical analysis 

VOD stock chart | Source: TradingView

The weekly chart shows that the VOD stock price has rebounded in the past few years. It has crossed the important resistance level at 105p, the upper side of the cup-and-handle pattern. It was also along the 61.8% Fibonacci Retracement level.

The stock’s Relative Strength Index (RSI) has jumped to the overbought level at 85. Also, the Average Directional Index (ADX) has continued rising, a sign that the uptrend is strengthening.

Therefore, the most likely Vodafone stock price forecast is bullish, with the next key level being at 120p, the 78.6% retracement level. A move above that price will point to more gains, potentially to 138p, its highest level in January 2018, which is 20% above the current level.

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