Intangible assets

12 Months Ended

Mar. 31, 2025



10. Intangible assets

The consolidated statement of financial position contains significant intangible assets, mainly in relation to goodwill and licences and spectrum. Goodwill, which arises when we acquire a business and pay a higher amount than the fair value of its net assets primarily due to the synergies we expect to create, is not amortised but is subject to annual impairment reviews. Licences and spectrum are amortised over the life of the licence. For further details see ‘Critical accounting judgements and key sources of estimation uncertainty’ in note 1 ‘Basis of preparation’ to the consolidated financial statements.

Accounting policies

Identifiable intangible assets are recognised when the Group controls the asset, it is probable that future economic benefits attributed to the asset will flow to the Group and the cost of the asset can be reliably measured. Identifiable intangible assets are recognised at fair value when the Group completes a business combination. The determination of the fair values of the separately identified intangibles, is based, to a considerable extent, on management’s judgement.

Goodwill

Goodwill arising on the acquisition of an entity represents the excess of the cost of acquisition over the Group’s interest in the net fair value of the identifiable assets, liabilities and contingent liabilities of the entity recognised at the date of acquisition.

Goodwill is initially recognised as an asset at cost and is subsequently measured at cost less any accumulated impairment losses. Goodwill is not subject to amortisation but is tested for impairment annually or whenever there is evidence that it may be impaired. Goodwill is denominated in the currency of the acquired entity and revalued to the closing exchange rate at each reporting period date.

Negative goodwill arising on an acquisition is recognised directly in the consolidated income statement.

On disposal of a subsidiary or a joint arrangement, the attributable amount of goodwill is included in the determination of the profit or loss recognised in the consolidated income statement on disposal.

Finite lived intangible assets

Intangible assets with finite lives are stated at acquisition or development cost, less accumulated amortisation. The amortisation period and method are reviewed at least annually. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are accounted for by changing the amortisation period or method, as appropriate, and are treated as changes in accounting estimates.

Licence and spectrum fees

Amortisation periods for licence and spectrum fees are determined primarily by reference to the unexpired licence period, the conditions for licence renewal and whether licences are dependent on specific technologies. Amortisation is charged to the consolidated income statement on a straight-line basis over the estimated useful lives from the commencement of related network services.

Software

Computer software comprises software purchased from third parties as well as the cost of internally developed software. Computer software licences are capitalised on the basis of the costs incurred to acquire and bring into use the specific software. Costs that are directly associated with the production of identifiable and unique software products controlled by the Group, and are probable of producing future economic benefits, are recognised as intangible assets. Direct costs of software development include employee costs and directly attributable overheads.

Software integral to an item of hardware equipment is classified as property, plant and equipment.

Costs associated with maintaining software programs are recognised as an expense when they are incurred.

Amortisation is charged to the consolidated income statement on a straight-line basis over the estimated useful life from the date the software is available for use.

Other intangible assets

Other intangible assets, including brands and customer bases, are recorded at fair value at the date of acquisition. Amortisation is charged to the consolidated income statement, over the estimated useful lives of intangible assets from the date they are available for use, on a straight-line basis. The amortisation basis adopted for each class of intangible asset reflects the Group’s consumption of the economic benefit from that asset.

Estimated useful lives

The estimated useful lives of finite lived intangible assets are as follows:



Licence and spectrum fees			3 - 40 years

Software			3 - 10 years

Brands			1 - 30 years

Customer bases			2 - 37 years



	Goodwill € m			Licence and spectrum fees € m			Computer software € m			Customer bases € m			Other € m			Total € m

Cost

1 April 2023		96,904			34,306			18,474			11,905			539			162,128

Exchange movements		(1,042	)		(435	)		(414	)		(130	)		(60	)		(2,081	)

Additions		–			283			2,615			–			17			2,915

Disposals		–			(986	)		(989	)		–			(2	)		(1,977	)

Transfer of assets held for resale		(19,498	)		(6,258	)		(2,600	)		(2,517	)		(57	)		(30,930	)

Hyperinflation impacts		888			382			348			62			49			1,729

31 March 2024		77,252			27,292			17,434			9,320			486			131,784

Exchange movements		(252	)		62			(63	)		17			(18	)		(254	)

Acquisition of subsidiaries		7			–			–			4			–			11

Additions		–			236			2,414			–			5			2,655

Disposals		–			(98	)		(772	)		–			(1	)		(871	)

Hyperinflation impacts		709			301			291			49			39			1,389

Other		–			–			(45	)		–			–			(45	)

31 March 2025		77,716			27,793			19,259			9,390			511			134,669



Accumulated impairment losses and amortisation

1 April 2023		69,289			24,337			12,462			8,307			526			114,921

Exchange movements		(897	)		(144	)		(324	)		(120	)		(56	)		(1,541	)

Charge for the year 1		–			1,031			2,484			606			1			4,122

Disposals		–			(985	)		(951	)		–			–			(1,936	)

Transfer of assets held for resale		(16,984	)		(2,704	)		(1,871	)		(2,517	)		(57	)		(24,133	)

Hyperinflation impacts		888			196			304			62			49			1,499

31 March 2024		52,296			21,731			12,104			6,338			463			92,932

Exchange movements		(318	)		106			(58	)		16			(14	)		(268	)

Impairments		4,515			–			–			–			–			4,515

Charge for the year 1		–			651			2,431			605			8			3,695

Disposals		–			(98	)		(767	)		–			(1	)		(866	)

Hyperinflation impacts		709			176			250			49			39			1,223

31 March 2025		57,202			22,566			13,960			7,008			495			101,231



Net book value

31 March 2024		24,956			5,561			5,330			2,982			23			38,852

31 March 2025		20,514			5,227			5,299			2,382			16			33,438

Note:

1.	Included in the charge for the year ended 31 March 2025 is € nil (2024: € 607 million) in respect of Vodafone Italy and Vodafone Spain,

which are now reported as discontinued operations. See note 7 ‘Discontinued operations and assets held for sale’ for more information.

For licences and spectrum fees and other intangible assets, amortisation is included within the cost of sales line within the consolidated income statement. Included in the net book value of computer software and licenses and spectrum fees are assets in the course of construction, which are not depreciated, with a

cost of

€

1,035 million (2024:

€

1,200 million

) and

€

151m (2024:

€

million) respectively.

The net book value and expiry dates of the most significant licences are as follows:



			2025		2024

	Expiry dates		€m		€ m

Germany		2025 - 2040		2,392		2,686

UK		2033 - 2041		965		989

Vodacom		2026 - 2042		771		687

The remaining amortisation period for each of the licences in the table above corresponds to the expiry date of the respective licence. A summary of the Group’s most significant spectrum licences can be found on page 235.