Vodafone Group's (VOD) UK unit, VodafoneThree, has revised its cost-saving target to 1 billion pounds ($1.32 billion) annually by fiscal 2032 and unveiled its growth and strategy ambitions.

This is an increase from the company's previous target of 700 million pounds by fiscal year 2030. VodafoneThree, which was formed by a merger between Vodafone UK and Three UK, also established a new, accelerated interim milestone of 800 million pounds in annual savings by fiscal year 2030.

The unit also set out new milestones. It is targeting a mid-to-high single-digit compound annual growth rate for adjusted earnings before interest, taxes, depreciation, amortization, and after leases between fiscal years 2025 and 2032.

VodafoneThree expects operating free cash flow to more than triple by fiscal 2032, versus fiscal 2025. It sees return on capital exceeding the cost of capital by fiscal 2032 and "materially" above by fiscal 2034.