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Vodafone has raised VodafoneThree’s annual cost-savings target to £1 billion by FY32, with an interim target of £800 million a year by FY30. The revised plan replaces the previous goal of £700 million annually by FY30. These are forward-looking company targets, not savings already achieved, and Vodafone says actual savings may differ from its estimates or fail to materialise.
How the new target compares with the old one
Vodafone’s 8 October 2026 investor briefing sets out a higher annual savings ambition and a later final deadline. The figures refer to the annual rate of savings targeted by each financial year, not a cumulative total.
| Plan | Annual savings target | Target year |
|---|---|---|
| Previous target | £700 million per year | FY30 |
| Updated interim target | £800 million per year | FY30 |
| Updated longer-term target | £1 billion per year | FY32 |
Vodafone describes these as VodafoneThree targets. The company warns that savings and synergy estimates are forward-looking: they may be delivered earlier or later than estimated, differ materially from estimates, or not be achieved. Vodafone’s investor briefing gives the targets and caveat.
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Why Vodafone says it can save more
Vodafone attributes the higher ambition to expected savings as network construction is completed, further network rationalisation, and faster execution under full Group ownership. These are the company’s stated explanations, not independently verified savings results.
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VodafoneThree is the UK business formed by combining Vodafone UK and Three UK. Reuters reported that Vodafone agreed in May 2026 to acquire CK Hutchison’s stake for £4.3 billion, giving Vodafone full ownership; Vodafone links that ownership to its ability to execute its plans. Reuters’ report distributed by Euronext covers the transaction context.
Separately, Vodafone says the merger offers potential revenue synergies. Those are opportunities to increase revenue, not part of the £1 billion cost-savings target. ITV also reported that the company expects to reduce overlapping mobile sites and remove duplicated costs; this operational detail is reported by ITV News.
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Other UK targets in Vodafone’s plan
The savings target sits within a broader VodafoneThree growth and value-creation plan. Vodafone also set targets for FY25–FY32 of mid-to-high single-digit annual growth in Adjusted EBITDAaL and operating free cash flow of more than three times its FY25 level. These, like the savings figures, are ambitions rather than achieved results. The company’s investor briefing sets out the additional targets.
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