VodafoneThree has raised its annual cost-saving target to £1 billion by 2032, up from £700 million previously, as it outlined an expanded growth strategy for the UK market.
The company expects to achieve £800 million in annual cost savings by 2030, before increasing the figure to £1 billion by the financial year ending March 2032.
The revised target was announced during a Vodafone Group investor briefing, where the company outlined its financial ambitions and plans to create greater value from its UK operations.
VodafoneThree has also set a target of mid-to-high single-digit annual growth in adjusted earnings between 2025 and 2032. Over the same period, it aims to more than triple its operating free cash flow.
The announcement comes more than two months after Vodafone completed its full takeover of VodafoneThree, acquiring CK Hutchison’s 49 per cent stake in the business for £4.3 billion.
As part of its growth strategy, the company reaffirmed an £11 billion investment plan over 10 years to upgrade the UK’s mobile network, strengthen its position in the consumer market and expand its business unit.
The investor briefing was hosted by Vodafone Group’s chief executive of European markets, Ahmed Essam, and VodafoneThree chief executive Max Taylor.
Vodafone chief executive Margherita Della Valle said the company established VodafoneThree because it identified an opportunity to transform the UK market.
“After a strong start, we now have even greater confidence in the opportunity ahead. That’s why we are upgrading our cost target to £1 billion, with VodafoneThree set to become an increasingly important contributor to Vodafone’s growth ambitions,” she said.
The revised savings target and financial objectives form part of Vodafone’s broader strategy to strengthen VodafoneThree’s contribution to the group’s growth over the coming years.
