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(Sharecast News) - Vodafone lifted its annual cost-savings target for VodafoneThree on Thursday, as it hailed "strong" progress against its cost targets.
The company now expects £1bn of cost savings per year by 2032, up from £700m by 2030 previously.
Vodafone said this was driven by further savings as its network build completes and as it benefits from network rationalisation as well as full group ownership, which enable the company to move at an even faster pace.
It also outlined new targets. Vodafone expects mid-to-high single digit adjusted earnings before interest, tax, depreciation, amortisation and lease costs growth between 2025 and 2032, and for operating free cash flow to more than triple by 2032, versus 2025.
Chief executive Margherita Della Valle said: "Today we are setting out in detail our strategy and growth ambitions for the UK. We are issuing new bolder financial targets and we are outlining the execution plan we have in place to deliver these.
"We created VodafoneThree because we saw the opportunity to transform the UK market. To create the scale to invest. To deliver a step change in network quality and customer experience across every region of the UK. And to build a stronger business, creating sustainable long-term value.
"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."
At 1010 BST, Vodafone shares were down 1.3% at 126.05p.
Dan Coatsworth, head of markets at AJ Bell, said: "The integration process after a merger is notoriously fraught with challenges, so to see Vodafone upgrade its targets for its VodafoneThree combination in the UK is encouraging.
"After years of going nowhere on the stock market, today's announcement is the latest feather in the cap for chief executive Margherita Della Valle as she continues to execute on a turnaround of the group.
"Since taking over at the beginning of 2023, Della Valle has delivered a total return of 75%, according to ShareScope data, which compares with a return over the previous decade of just over 1%."
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