Vodafone and Three UK merger boosts sales in challenging market
- Vodafone's merger with Three UK was completed in May 2025 and has resulted in a significant increase in sales.
- Sales in the UK surged by 14.5% to €1.9 billion as a result of the merger, despite a decline in mobile contract customers.
- Vodafone commits to investing £11 billion over the next 10 years to improve its mobile networks, aiming for long-term growth.
In the United Kingdom, Vodafone has reported significant growth after merging with Three UK, a deal that was completed at the end of May 2025. This merger was initially announced in June 2023 and came into fruition after it received approval from the UK’s Competition and Markets Authority. Post-merger, Vodafone's sales rose by 14.5%, reaching €1.9 billion (£1.65 billion) from April to June of this year, benefiting from the addition of Three's customer base. This marked a pivotal moment for the company as it aimed to enhance its presence in the mobile market. Vodafone's revenue increase was primarily driven by a surge in mobile service sales, which grew by 20%. However, the company did experience a drop in its mobile contract customer base by 46,000 during the quarter. The decline was attributed to losses in the Three UK consumer base as well as the disconnection of large business contracts. Despite this setback, the merger positioned VodafoneThree as the largest mobile phone network in the UK, combining a customer base of approximately 29 million. Moving forward, Vodafone has outlined a robust investment plan amounting to £11 billion over the next decade. This investment will focus on upgrading and expanding 5G networks, which have become essential for mobile communication in recent years. The merger had faced scrutiny due to concerns that it might limit customer options and lead to increased costs. However, Vodafone's commitment to investing in network improvements might mitigate these concerns and enhance customer experience in the long run. Overall, Vodafone's swift progress towards integrating its operations with Three UK reflects a strategic move to capitalize on increased customer demand while navigating competitive pressures in the market. Chief executive Margherita Della Valle emphasized that after two years of transformation, Vodafone is now poised for sustained growth in both European and African markets. These developments indicate a significant shift in the landscape of mobile telecommunications in the UK, underscoring the ongoing evolution driven by mergers and customer-centric investments.