Vodafone Group reiterated its adjusted EBITDAaL guidance but experienced softer operating trends in Germany and the UK, causing shares to decline 5%. Germany showed service revenue growth of 0.7% year-on-year, with only 40,000 mobile subscriber additions. In the UK, service revenue growth declined to minus 0.5% year-on-year. The company is maintaining a fair value estimate of GBX 89 per share.

Vodafone’s weak subscriber additions in Germany and the UK are benefiting Deutsche Telekom, which has gained mobile and broadband share. Vodafone’s total operating costs rose 8.2% in the first half of the year, outpacing revenue growth. A new EUR 500 million tranche of the share buyback program will commence, but no benefits are expected as long as shares remain overvalued.

Read more at Morningstar: Vodafone Earnings: Germany and UK Weakness Cloud EBITDAaL Confirmation