Vodafone Spain has reported a marked improvement in its financial and operational performance, reinforcing its position as negotiations over a potential merger with Telefónica continue.

The telco, owned by investment fund Zegona since 2024, delivered its second full-year set of results under the new ownership, posting stronger earnings, lower debt and a return to revenue growth for the first time since 2022.

Operating profit rose by 10 per cent year-on-year to €1.86 billion in the financial year ending March 2026. Performance accelerated in the final quarter, with operating profit increasing by 18 per cent to €505 million compared with the same period a year earlier.

The company also showed signs of reversing a prolonged period of stagnation in revenue. While full-year turnover remained broadly stable at €3.63 billion, Vodafone Spain recorded revenue growth during the second half of the fiscal year. Revenues increased by 1.5 per cent over the six-month period and by 2 per cent in the fourth quarter alone, marking the first sustained growth trend since 2022.

The company attributed the turnaround to a transformation strategy centered on a leaner organisational structure, a stronger commercial focus and tighter financial discipline.

“The management team has continued to execute its transformation plan based on three pillars: a more agile organisation, a reinforced commercial approach and strict financial discipline,” the company said. “This management model is helping reverse inherited negative trends and restore profitable growth.”

Vodafone Spain’s balance sheet also improved significantly. Net financial debt fell by 13 per cent during the year, declining from €3.71 billion in March 2025 to €3.21 billion in March 2026.

The stronger performance is expected to bolster Zegona’s position in ongoing discussions with Telefónica regarding a possible combination of their Spanish operations. Talks have reportedly been complicated by differences over the valuation of Vodafone Spain’s business.

Customer growth also remained positive. Vodafone Spain achieved its sixth consecutive quarter of net additions in broadband adding 29,000 customers

The company credited its commercial strategy for the gains, highlighting a stronger focus on converged customers, greater use of handset offerings to improve retention, and the continued expansion of its value brand Lowi through the addition of television services and device bundles.

“This second year marks a turning point for Vodafone Spain,” commented José Miguel García, Chief Executive of Vodafone Spain. “We have stabilised the business, returned to commercial growth and generated record operating cash flow. We have done so with a more agile, efficient and customer-focused model. The future potential is enormous, and we are better prepared than ever to deliver on our long-term strategic plan.”

Other posts by :

1. Amazon Leo gains South Africa link
2. Eutelsat wants an extra 528 satellites
3. FCC approves orbital space mirrors
4. Analysts: “Unknown Unknowns for SpaceX”
5. Ligado’s bankruptcy clean-up continues
6. Arianespace to offer ‘rideshare’ launches
7. Space industry warns Europe must do more
8. Banks increase SpaceX forecasts
9. Orbex bankruptcy details released

Categories: Articles, Business, M&A, Results, Telco

Tags: spain, telefonica, Vodafone