London: British telecommunications company Vodafone reported an operating loss of £411 million ($462.3 million) for the 2025 financial year, warning Tuesday that uncertainties around foreign exchange rates and trade policies could affect future earnings. "The current macroeconomic climate presents significant uncertainties, particularly on trade and foreign exchange rates, which may impact our financial performance in the year ahead," the company said.
According to Anadolu Agency, the loss was driven by impairment charges totaling £4.5 billion related to Vodafone's operations in Germany and Romania, as disclosed in its preliminary financial results. In contrast, the previous year saw Vodafone posting a net profit of £3.7 billion. Despite the operating loss, revenue in 2025 increased by 2% year-on-year, reaching £37.4 billion.
The company anticipates that its adjusted core earnings will range from £11 billion to £11.3 billion in the 2026 financial year. For 2025, Vodafone's adjusted core earnings were reported at £11 billion, aligning with its guidance. Challenges faced by Vodafone's German operations are expected to diminish by next year, with sales growth projected to resume.
Vodafone also announced a new £2 billion share buyback program as part of its financial strategy moving forward.