Vodafone shares eye 135p as turnaround lifts revenues
Vodafone shares are at their highest since 2018, trading around 125p, and technical indicators point to a potential rise to about 135p amid revenue growth from its turnaround.
Vodafone’s share price has risen to its highest level since January 2018, recently trading around 125p. The stock is roughly 130% above its 2024 low of 54.62p and has moved above the May 11 high of 119.75p. It is holding above the 50-day and 100-day exponential moving averages, and the Relative Strength Index has climbed above 50.
Technical analysts identify 135.55p, the January 2018 peak, as the next resistance level. Weekly charts show a strong advance from the 2024 low to current levels, and a sustained move above 135.55p would set a new high since 2018.
Vodafone reported first-quarter revenue of €8.62 billion, up from €7.8 billion a year earlier. Growth was led by operations in Africa and Turkey. Germany generated €2.7 billion in revenue, a 1.9% increase year-on-year, while the UK produced €1.98 billion.
The group sold Vodafone Italy and Vodafone Spain for a combined amount exceeding €12 billion and has redirected capital to core markets. Vodafone acquired Three in the UK, forming a combined VodafoneThree business, and bought a substantial stake in Safaricom in Kenya. The company has reduced headcount as part of cost-control measures.
Management is exploring a UK TV service to bundle with broadband and mobile offerings, aimed at raising revenue per household and increasing broadband penetration. Vodafone has set a broadband target of more than 4.3 million customers by 2034.
According to the head of VodafoneThree, “We need a TV offering to sell to our fixed broadband customer base, but also we’ve got a very large mobile customer base and TV is something our customers are asking for.”
Market participants note that launching and operating a TV service requires significant investment; BT previously sold part of its TV business to Warner Bros. Discovery and has sought buyers for remaining assets.
Investors will monitor upcoming trading updates and any formal plans for a TV service. Further confirmation of a sustained share-price rally would be a move above the 135.55p level.
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