Here’s why the Vodafone share price is rising after earnings

Vodafone share price continued the recent recovery after the company published strong financial results and boosted its guidance. VOD jumped to 120p, up by 23% from its lowest level this month. This rally may continue as Margherita Della Valle’s turnaround efforts start bearing fruit.

Vodafone published strong results and guidance

Vodafone, one of the biggest telecommunications group in the world, published strong financial results. Its revenue jumped by 9.7% in the second quarter to €10.3 billion, helped by its service segment and the consolidation of Three UK. Its service revenue jumped by 9.8% to €8.6 billion.

Germany, its biggest market, experienced organic growth of 1.2% with higher wholesale and fixed-line revenue. In the UK, the company’s organic revenue rose slightly by 0.6%, helped by its consumer broadband and business segments.

Vodafone’s other businesses continued growing, with Africa’s segment experiencing double-digit growth. The business segment experienced a 5% growth rate. In a statement, Margherita said:

“In May, we said Vodafone is entering a new chapter – one focused on stronger, multi-year growth. We have made a good start to this financial year, with broad-based growth across all of our segments and organic service revenue increasing by 5.2%.”

Most notably, Vodafone expects that its business will continue doing well, helped by its recent actions. For example, it expects that the closely-watched EBITDAaL will be between € 13 and € 13.3 billion, with the adjusted free cash flow being between €2.6 and €2.9 billion, with Safaricom contributing to this growth. 

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Vodacom acquired a 20% stake in Safaricom, meaning that Vodafone now owns a 55% stake in the company. Safaricom is the biggest company in East and Central Africa, and owns M-Pesa, a company that handled over $317 billion in volume last year.

Vodafone has been implementing a multi-year turnaround strategy in the past few years. It has boosted its investments in key countries, including through acquisitions. For example, it bought Three UK, a move meant to boost its market share in the UK.

At the same time, it has sold its operations in countries like Spain, Italy, Netherlands, Hungary, and Ghana. These exits have helped it refocus its operations to its core markets.

Vodafone share price technical analysis

VOD stock price chart | Source: TradingView

The weekly chart shows that the VOD stock has been in a strong upward trend in the past few years. It has rebounded from a low of 62.68p in 2024 to the current 119.75p.

The stock has jumped above the 38.2% Fibonacci Retracement level. It formed a golden cross as the 50-week and 200-week Exponential Moving Averages (EMA) crossed each other.

It has also jumped above the strong pivot reverse level of the Murrey Math Lines tool. Also, the Relative Strength Index and the MACD have continued rising.

Therefore, the stock will likely continue rising as bulls target the key resistance at 125p, the ultimate resistance level of the Murrey Math Lines tool.