Vodafone Dividends - VOD

Vodafone Dividends - VOD

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Stock Name Stock Symbol Market Stock Type Stock ISIN Stock Description
Vodafone Group Plc VOD London Ordinary Share GB00BH4HKS39 ORD USD0.20 20/21
  Price Change Price Change % Stock Price Low Price High Price Open Price Close Price Last Trade
2.18 1.97% 113.02 110.80 114.06 112.36 110.84 16:35:28
more quote information »
Industry Sector
MOBILE TELECOMMUNICATIONS

Vodafone VOD Dividends History

Announcement Date Type Currency Dividend Amount Period Start Period End Ex Date Record Date Payment Date Total Dividend Amount
12/11/2019InterimEUX4.530/03/201930/09/201928/11/201929/11/201907/02/20200
14/05/2019FinalEUX4.1631/03/201831/03/201906/06/201907/06/201902/08/20199
13/11/2018InterimEUX4.8430/03/201830/09/201822/11/201823/11/201801/02/20190
15/05/2018FinalEUX10.2331/03/201731/03/201807/06/201808/06/201803/08/201815.07
14/11/2017InterimEUX4.8430/03/201730/09/201723/11/201724/11/201702/02/20180
16/05/2017FinalEUX10.0331/03/201631/03/201708/06/201709/06/201704/08/201714.77
15/11/2016InterimEUX4.7430/03/201630/09/201624/11/201625/11/201603/02/20170
17/05/2016FinalGBX7.7731/03/201531/03/201609/06/201610/06/201603/08/201611.45
10/11/2015InterimGBX3.6830/03/201530/09/201519/11/201520/11/201503/02/20160
19/05/2015FinalGBX7.62231/03/201431/03/201511/06/201512/06/201505/08/201511.22
11/11/2014InterimGBX3.630/03/201430/09/201420/11/201421/11/201404/02/20150
20/05/2014FinalGBX7.4731/03/201331/03/201411/06/201413/06/201406/08/201411
12/11/2013InterimGBX3.5330/03/201330/09/201320/11/201322/11/201305/02/20140
21/05/2013FinalGBX6.9231/03/201231/03/201312/06/201314/06/201307/08/201310.19
13/11/2012InterimGBX3.2730/03/201230/09/201221/11/201223/11/201206/02/20130
22/05/2012FinalGBX6.4731/03/201131/03/201206/06/201208/06/201201/08/20129.52
08/11/2011InterimGBX3.0530/03/201130/09/201116/11/201118/11/201103/02/20120
08/11/2011SpecialGBX430/03/201130/09/201116/11/201118/11/201103/02/20120
17/05/2011FinalGBX6.0531/03/201031/03/201101/06/201103/06/201105/08/20118.9
09/11/2010InterimGBX2.8530/03/201030/09/201017/11/201019/11/201004/02/20110
18/05/2010FinalGBX5.6531/03/200931/03/201002/06/201004/06/201006/08/20108.31
10/11/2009InterimGBX2.6630/03/200930/09/200918/11/200920/11/200905/02/20100
19/05/2009FinalGBX5.231/03/200831/03/200903/06/200905/06/200907/08/20097.77
11/11/2008InterimGBX2.5730/03/200830/09/200819/11/200821/11/200806/02/20090
27/05/2008FinalGBX5.0231/03/200731/03/200804/06/200806/06/200801/08/20087.51
13/11/2007InterimGBX2.4930/03/200730/09/200721/11/200723/11/200701/02/20080
29/05/2007FinalGBX4.4131/03/200631/03/200706/06/200708/06/200703/08/20076.76
14/11/2006InterimGBX2.3530/03/200630/09/200622/11/200624/11/200602/02/20070
24/05/2006FinalGBX3.8731/03/200531/03/200607/06/200609/06/200604/08/20066.07
15/11/2005InterimGBX2.230/03/200530/09/200523/11/200525/11/200503/02/20060
24/05/2005FinalGBX2.1631/03/200431/03/200501/06/200503/06/200505/08/20054.07
16/11/2004InterimGBX1.9130/03/200430/09/200424/11/200426/11/200404/02/20050
25/02/2004FinalGBX1.0831/03/200331/03/200402/06/200404/06/200406/08/20042.03
18/11/2003InterimGBX0.9530/03/200330/09/200326/11/200328/11/200306/02/20040
27/05/2003FinalGBX0.931/03/200231/03/200304/06/200306/06/200308/08/20031.69
12/11/2002InterimGBX0.7930/03/200230/09/200220/11/200222/11/200207/02/20030
28/05/2002FinalGBX0.7531/03/200131/03/200205/06/200207/06/200209/08/20021.47
13/11/2001InterimGBX0.7230/03/200130/09/200121/11/200123/11/200108/02/20020
29/05/2001FinalGBX0.7131/03/200031/03/200106/06/200108/06/200110/08/20011.4
14/11/2000InterimGBX0.6930/03/200030/09/200020/11/200022/11/200009/02/20010
05/06/2000FinalGBX0.6801/10/199931/03/200007/06/200009/06/200021/08/20001.53
06/06/1999FinalGBX0.6531/03/199831/03/199914/06/199918/06/199913/08/19991.45
02/06/1998FinalGBX0.5631/03/199731/03/199808/06/199812/06/199814/08/19981.27

Top Dividend Posts

DateSubject
30/1/2020
11:40
spud: Why I think the Vodafone share price could surge in 2020 Alan Oscroft | Wednesday, 29th January, 2020 https://www.fool.co.uk/investing/2020/01/29/why-i-think-the-vodafone-share-price-could-surge-in-2020/ On Wednesday, Vodafone (LSE: VOD) told us it has agreed to sell its 44% shareholding in Vodafone Egypt. The sale, for $2,392m to Saudi Telecom Company, is not in itself particularly momentous. But I think it represents one more step in Vodafone’s improving business focus. It comes a few days after it announced a partnership with Sunrise of Switzerland. I like to see the group taking part in more modern networks and services in developed countries. We’ve had a series of new tie-up announcements, and I think it’s mostly heading in the right direction. For a long time, I’ve seen Vodafone as a ragbag of worldwide phone companies. In fact, I’ve found it hard to see anything beyond the sum of the parts. Couple that with a long-term overvaluation, plus stubborn and unaffordable high dividends, and I saw a sell. Dividend The dividend problem has been, at least partially, alleviated now. Vodafone finally slashed the annual payment, by 40%, for the year to March 2019. But it was still nowhere near covered by earnings that year. Cover should return by 2021 if analyst forecasts are accurate, but it will be very thin at around 1.1 times. But sentiment, at least, does seem to be turning in Vodafone’s favour. After falling approximately 40% in the five years to May 2019, Vodafone shares have been picking up. And since that 2019 low, we’ve seen a 24% rise. Forecast earnings for the year to March 2020 put Vodafone shares on a P/E of 24, which might seem steep. But after a few up-and-down years, analysts are predicting some solid earnings growth to come. A predicted EPS increase of 35% in 2020/21, followed by another 20% for 2021/22, would drop the P/E to around 14.5. If earnings rises should continue beyond then, I could see that as a tempting growth valuation. But it’s more than two years away, 5G technology is only just getting started, and there’s intense competition. Resurgence? I do expect the Vodafone share price recovery to continue throughout 2020. That’s essentially because the 5G thing, plus those earnings forecasts, paint a tempting growth picture. And investors always seem ready to jump on the next growth prospect. But I fear the optimism is premature, and that the resurgence could turn bad again over the next couple of years. Vodafone will need to invest a lot of cash before it sees big profits from 5G technology, and I wonder if those forecasts are unjustifiably rosy. Then there’s Vodafone’s debt. At the halfway stage at 30 September, net debt stood at €48.1bn, up from €27bn at 31 March. That massive rise was partly due to assuming debt of €18.5bn from the acquisition of Liberty Global assets, but some was down to cash outflow. Dividend again That doesn’t help with the expenditure needed for all that 5G investment. Vodafone’s withdrawal from its older and lower-technology markets and the offloading of those assets is generating cash. But they’re not huge sums, and I can see a financial squeeze coming. The dividend cut that we’ve already seen needed to have come a lot sooner, and I reckon the current dividend should be pared back even further. Until I see Vodafone’s cash management looking a lot more settled, I’m keeping away — even if I do think there’ll be short-term gains. spud
03/12/2019
10:50
tgkg: : London South East Our new Cryptocurrency section has arrived! Click here Share PricesVodafone Share PriceVodafone Share Chat Pin to quick picksVodafone Share Chat (VOD) VOD Share Price VOD Share Price VOD Share News VOD Share News VOD Share Chat VOD Share Chat 5 VOD Share Trades VOD Share Trades 4,873 VOD Live RNS VOD Live RNS VOD Information Buy VOD SharesBuy VOD SharesAdd VOD to WatchlistAdd VOD to WatchlistAdd VOD to AlertAdd VOD to AlertAdd VOD to myTerminalAdd VOD to myTerminal Share Price Information for Vodafone (VOD) London Stock Exchange Share Price is delayed by 15 minutes Get Live Data Share Price: 146.54 Bid: 146.52 Ask: 146.54 Change: -1.84 (-1.24%) Spread: 0.020 (0.01%)Open: 148.22High: 148.86Low: 146.30Yest. Close: 148.38 VOD Live PriceLast checked at 10:42:20 Share Discussion for Vodafone Regular Premium Filters Post Message View Buy buy buy bargain price I work for the government, there will be never free Internet in this country as this already has failed in Australia, society would not pay extra tax to sponsor this, and as ugly as this sounds there is no money to pay for free Internet from the budget, and there will never be money for it as we were instructed to prioritise NHS and ministry of justice as whole institution, looks to me like short sellers bought the silly idea of free interrnet and sold Vodafone shares, seriously guys, be realistic, I work for the budget for 12years now, all the Internet providers will function as normal. This share price is amazing now, only because people believe that government pay for the country Internet, I can understand that parties using this fake promise but who would believe this with the debt figure for this year!!!!!
31/10/2019
11:44
spud: https://uk.finance.yahoo.com/news/joint-venture-india-hit-next-141216643.html With its joint venture in India hit, what’s next for the Vodafone share price? An ongoing court battle in India came to a head last week, after the country’s Supreme Court issued a ruling that could leave telecoms firms operating in India liable for billions of dollars worth of license fees and fines. British operator Vodafone Group (LSE: VOD), through its joint venture Vodafone Idea, is set to be one of the hardest hit. The more-than-a-decade-long battle between telecoms firms and the government focuses on a fairly technical (beyond the scope of this article) piece of law, which contends that telecoms firms should pay levies not just on their core operations, but also on non-core revenues as well. Needless to say, this latest ruling found in favour of the government. More than hindering future profits, the decision in fact means that companies will now have to pay many years’ worth of charges, as well penalties, which will hit the industry for billions of dollars. India’s Department of telecoms is seeking more than INR920bn ($13bn) in outstanding dues, for which Vodafone Idea faces the heaviest individual costs. Idea is now on the hook for about $4bn in historical levies and fines, which if it is unable to pay could eventually cause the collapse of the company. Following the news, its share price was down about 26% on the National Stock Exchange of India. Joint venture British partner Vodafone Group, which holds a 45% stake in Idea, is also set to feel the pain, though more in the long run than an immediate hit (its shares stand down about 3% following the news). Vodafone Idea is at serious risk of collapsing if it is unable to pay the fees, which could write off the sizeable investment Vodafone Group has in the firm. Even if it can survive the costs, or perhaps sees some leniency on the part of the government, the extra costs will hinder Idea’s ability to bid in 5G auctions – a key battleground for mobile operators over the coming years. For Vodafone Group, this means its foothold in India – the world’s second largest telecoms market – will be stagnant at best. Back home Away from India, Vodafone already announced this month that it will be closing about 1,000 stores across Europe, an indication of the shift away from bricks and mortar stores towards online purchases of mobile phones. In July, meanwhile, the company said it would be making its tower business into a separate legal entity, which it would consider floating or selling in the next year or so. This was taken well by the market, combined with quarterly results that were better than expected. In my opinion, the India ruling could perhaps represent more of a problem for Vodafone than a simple cost to be paid. If the joint venture does fail, it leaves it with no real exposure to such a large telecoms market. This may not scare UK shareholders in the short run, but over the long term it means Vodafone is going to lose out. spud
30/9/2019
11:14
spud: From MF: Should I buy the Vodafone share price, up almost 30% in 2 months? Kevin Godbold | Monday, 30th September, 2019 | More on: VOD It seems clear that the stock market has been reappraising the prospects for telecoms operator Vodafone (LSE: VOD) recently and the shares are up almost 30% over the past two months or so. I last wrote about the company in May not long after it had cut its dividend. The debts were high, cash inflow had been flat for years, and the share price had been falling for around 17 months, wiping off more than 40%. I argued back then that there’s nothing in the financial record to suggest that Vodafone was gaining ground with its earnings, so I was avoiding the shares. Monetising its assets But Vodafone has out-foxed me since! On 26 July the firm announced plans to unlock value for shareholders by creating “Europe’s largest” tower company. The idea is that 61,700 of the company’s towers will be separated into a new organisation planned to be operational by May 2020, with its own management team. Vodafone is looking at ways to monetise the assets, which could include an IPO of the new tower company. It seems like a smart move. Cashing in the inherent value of its own assets will help the firm reduce its big debt load later on. And the market likes it. The shares shot up about 15% when the announcement hit the newswires and the price has been drifting up ever since. But City analysts following the firm are still only predicting flat revenue, cash flow and dividends ahead, which I find it difficult to become excited about. Upgrading the network Right now, Vodafone is busy rolling out its 5G network. But where will it end, 6G, 7G… 27G? One of the big challenges in the business, as I see it, is that technology keeps evolving and so does the need for Vodafone to reinvest. But does the reinvestment score the firm much competitive advantage, or is it just a cost involved to keep up? Vodafone used to be a fast-growing player in an exciting, up-and-coming sector, but now I see it as a commodity-style provider of services that will probably never shoot the lights out with growth again. Indeed, I suspect most investors coming to Vodafone today will be attracted by its dividend yield, which is running just above 5% with the shares at 163p. But I want my dividend-paying investments to be supported by generally rising revenues, earnings, cash flows and share prices. Right now, most of those things remain flat with Vodafone, which unsurprisingly leads to a flat dividend. Maybe we’ll see the new infrastructure deal regarding the towers help things along for a while. But let’s not forget that the share price has recently plunged and the dividend has been cut. I’d feel nervous holding the shares for, say, the next 10 years, so I’ll continue to avoid them now. spud
20/9/2019
12:49
spud: What’s next for the Vodafone share price and its 5.5% yield? Rupert Hargreaves | Friday, 20th September, 2019 The Vodafone (LSE: VOD) share price hasn’t been a particularly exciting investment to own in 2019. Indeed, including dividends paid out to investors, shares in the telecommunications giant have yielded a total return of 4.6% year-to-date compared to a gain of 12.8% for the FTSE 100. Over the past 12 months, the company has underperformed the UK’s leading blue-chip index by 7.6%, including dividends. But despite this, I think Vodafone’s income credentials could make it a great addition to your portfolio. Slow and steady Vodafone is one of the largest telecoms companies in the world and, as a result, it’s growth is a constraining factor on the group’s growth. You’re not going to see the stock report 20% or 30% earnings growth in a single year, for example. However, what the stock does offer is a level of safety. Vodafone is one of the top dividend shares in the UK. The company’s commitment to dividends has helped it stand out. Over the past decade, the stock has produced an annual return of 6.5%, including dividends. I think this trend is set to continue. At the time of writing, shares in the business support a dividend yield of 5.5% and, while the group does have quite a lot of debt to deal with, management seems to be committed to maintaining this distribution. Debt concerns In the past, I’ve expressed concern about the level of debt on Vodafone’s balance sheet. I’ve also said this borrowing could weigh on the company’s dividend growth. I continue to believe that Vodafone has a debt problem, but management seems to have the issue under control. Cutting the group’s dividend by 40% at the beginning of May was, in my opinion, the right thing to do, even though it eliminated the company’s 20-year history of dividend increases. Still, the dividend production will free up billions in additional cash flow every year, which can be used to reduce debt along with the company’s assets sales. During its financial year to the end of March 2019, Vodafone generated around €5bn in free cash flow. The dividend payout consumed €4bn of this. A 40% reduction on this figure should free up €1.6bn per annum for paying down debt. That’s excluding the additional cash flow Vodafone will be able to produce from its newly acquired Liberty assets in Europe and the cash received from the sale of its mobile tower business. Cash cow Vodafone is a lumbering giant, but it’s also a cash cow. While I’m not expecting the company to report explosive earnings growth, its strong cash generation leads me to conclude its dividend is sustainable at the lower level. With this being the case, I think if you’re looking for a trustworthy dividend stock to add to your portfolio, then Vodafone could be a great candidate. Its dividend yield of 5.5% is currently above the FTSE 100 average of 4.5% and, as explained above, the distribution is well covered by free cash flow generated from operations. spud
09/9/2019
15:41
spud: Why I think the Vodafone share price could be set for a rebound Alan Oscroft | Monday, 9th September, 2019 | More on: VOD Vodafone (LSE: VOD) shares have recovered 25% since June, so am I speculating on something that’s already happened by suggesting we’re in for a rebound? Well, we have plenty of short-term spikes in shares, and many of them fail to stick. The bigger question is over Vodafone’s chances of regaining the share price levels it was at two years ago, before the long slide set in. I think it could take a while yet for the price to break 200p again, but recent developments make me think the upwards move could be poised to continue. Slash The shares had been looking very poorly after the telecoms giant finally slashed its dividend in May by 40%, after years of paying out huge amounts of cash that were nowhere near covered by earnings. I’ve always maintained that an over-generous dividend policy while there’s huge debt on the books is folly — it’s effectively borrowing money to hand to shareholders. And while those who were firmly attached to their unsustainable 6%+ yields were somewhat miffed, I was pleased to see an inkling of common sense creeping back. Sell Then in July, at the same time that a trading update provided hints of improving market conditions, Vodafone revealed plans to spin off its mobile tower operations into a separate new business. Provisionally dubbed ‘TowerCo’;, the demerged entity would control Europe’s largest tower portfolio (61,700 of the things across 10 markets) with an estimated EBITDA of around €900m. It might even result in a separate flotation, but we’ll have to see how that develops. The market responded enthusiastically, triggering a share price uplift that has since continued. I see it as a good move too, as it’s starting to address my other key uncertainty over Vodafone. To me, the business has looked like a jumbled mess of individual country-specific operations and I haven’t been able to uncover much in the way of an overall joined-up strategy. This could be an important step. Smile In recent years I’ve seen the Vodafone share price as being largely led by sentiment, following on from a time when the industry was awash with takeover rumours and shares were just too highly valued. The subsequent slide has taken care of a lot of that, and investors are starting to regain some of their past enthusiasm. I’ve taken a look at the most popular shares in August, and I covered a few you’ll know well if you read these pages. But one I didn’t mention was Vodafone. While much of the DIY investment activity was focused on safety (like buying gold), the most bought share in the month was Vodafone (with National Grid in second place, ahead of Lloyds Banking Group). Buy? The shares are still on a toppy valuation for the current year with a forward P/E of 22, but big earnings growth forecasts are on the cards and that multiple would drop to 17 by 2020. And, by then, even the pared down dividend would be back up to a predicted 5.3% yield. That’s looking like a sustainable valuation to me, and I think Vodafone could be finally heading out of the woods. spud
07/7/2019
09:20
adrian j boris: THE MOTELY FOOL This is what I’d do with the Vodafone share price right now Roland Head | Sunday, 7th July, 2019 | More on: VOD Illustration showing how the world is connected Image source: Getty Images. The Vodafone Group (LSE: VOD) share price is bumping along at about 130p — its lowest level since the 2008 financial crisis. Is the telecom giant’s lowly share price justified? Probably, in my view. Should you sell the shares? I don’t think so. Here, I’ll explain why I feel holding onto Vodafone stock might be the best plan right now. Finally, what a relief! In May, Vodafone boss Nick Read finally bowed to necessity and cut the group’s dividend by 40%. Shareholders may have felt disappointed, but in my view this was a good decision that should end up helping investors. When I last looked at the telecoms giant in March, I explained why I thought the group’s debt levels were too high. My view was that the company’s latest issue of debt seemed like a cunning plan, but didn’t leave any scope for debt repayments. Put simply, I thought Read was in danger of being too clever for his own good. A cash cow? The dividend cut put Vodafone back on my radar as a potential buy. You see, despite the firm’s heavy investment in new networks, its free cash flow is still pretty good. Last year, the firm generated €4.4bn of free cash flow, even after buying 5G spectrum and paying cash restructuring costs. This level of free cash flow would have been swallowed up by the old dividend, leaving no cash spare for debt reduction. But my sums suggest if this level of cash generation can be maintained, the new reduced dividend should leave about €1.5bn spare to help reduce debt. Ultimately, that’s good news for shareholders as it makes the dividend safer. Buy, sell or hold? I think Vodafone could remain out of favour with investors for a little while longer yet. But I no longer view the stock as a sell. In my view, the company’s continued strong cash generation and dividend cut make the valuation seem much more appealing. It’s worth noting that at current levels, this global business is trading on just 8.7 times free cash flow. I think that’s an attractive valuation, if it’s sustainable. A second attraction is that earnings are expected to rise significantly next year. Broker forecasts show City analysts expect earnings to rise by 27% to €0.10 per share in 2020/21. That would put the stock on a fairly reasonable rating of 14 times earnings. Even after the dividend cut, VOD shares offer a forecast dividend yield of 6.9% for the current year. That puts the shares firmly into high-yield territory. I won’t be adding Vodafone shares to my portfolio, because I already own BT Group shares. The broadband and mobile group is too similar for me to want to double up. But if I was looking for a telecoms dividend stock to buy today, Vodafone would definitely be on my radar and might be my top choice.
11/6/2019
11:25
maywillow: cityam Tuesday 11 June 2019 11:00 am Vodafone: Has the share price found a floor? What is city talk? Latest Share Interactive Investor Talk Contributor Follow Interactive Investor By Graeme Evans from interactive investor. At extreme levels and with a heap of bad news priced in, this analyst discusses how they can recover. Vodafone: Has the share price found a floor? Source: iStock Rebuilding confidence in the battered Vodafone (LSE:VOD) share price won’t be quick or easy, particularly with sentiment still largely negative after last month’s first ever dividend cut. What matters most at the moment is whether the blue-chip stock has found a floor after diving to a near ten-year low in the wake of CEO Nick Read’s dramatic 40% dividend reduction. Analysts at UBS think they probably have, arguing in a note published today that the negative news surrounding the mobile phone giant now looks to be largely priced in. They said: “We think the share price underperformance over the past 12 months has been overdone and that the shares can re-rate as operating momentum gradually improves and overhangs disappear.” While the Vodafone valuation now looks cheap, the broker believes that re-rating may have to wait until there are signs of a stabilisation in service revenues. Vodafone will also need to show it can successfully monetise its portfolio of phone masts and towers, as well as sell other assets on top of existing plans to offload its New Zealand business to private equity. UBS continues to hold a price target of 207p, which is among the more optimistic in the City. Shares fell 4% last week to 128.4p, although this reflected the impact of the stock going ex-dividend. Source: TradingView Past performance is not a guide to future performance The broker’s research describes investor sentiment overall as remaining bearish, with long-only investors more likely than hedge funds to be pessimistic. “We think the share price is at extreme levels and is assuming that revenue declines continue,” they added. UBS notes there’s been limited push-back from investors on the reasons behind the dividend cut, with Vodafone looking to de-leverage at a time when resources are already strained by 5G spectrum auctions and infrastructure demands. Among its reasons for optimism, UBS points to continued strong growth in mobile data usage and evidence that consumers are still willing to pay more for their services. This should support the key metric of average revenue per user (ARPU). While European ARPUs are low compared with other markets such as United States, UBS sees improving trends in the UK and Germany as customers pay more for extra services. This should contribute to a gradual improvement in service revenue trends from the second quarter of this financial year, helped by favourable comparatives against last year. The broker added: “While risks remain that promotional activity in Spain could flare up again when Vodafone loses the La Liga rights, the outlook in the UK and Germany looks resilient.” Even after last month’s dividend cut, the yield on Vodafone shares has remained punchy at around 6%. The group has also committed to returning to a progressive dividend policy. The purchase of European assets from Liberty Global in May 2018 fuelled Vodafone’s debt worries, leading to leverage approaching three times underlying earnings. The question now for Vodafone investors will be whether Read can maximise the benefits of the Liberty deal, as well as boost returns from infrastructure assets and achieve his business simplification goals. These articles are provided for information purposes only.
25/1/2019
16:20
la forge: --Vodafone shares hit their lowest level since 2010 after the telecoms company reported a third-quarter revenue decline and warned the slump will continue into the fourth quarter. --Vodafone blamed price competition in Italy and Spain, as well as weak consumer spending in South Africa for the weaker revenue figure. --New Chief Executive Nick Read is under pressure to turnaround Vodafone's revenue and reduce its debt pile, in order to avoid cutting the dividend. By Adam Clark Vodafone Group PLC (VOD.LN) shares hit their lowest level for almost a decade on Friday, after new Chief Executive Nick Read failed to convince investors the telecommunications giant can arrest falling European revenue. London-based Vodafone said it generated revenue of 11 billion euros ($12.48 billion) in the quarter to Dec. 31, compared with EUR11.80 billion in the year-earlier period. Revenue was hit by accounting changes, the sale of its Qatari business and foreign exchange. Organic service revenue--a figure closely watched by analysts--rose 0.1% in the third quarter, Vodafone said. This represents a slowdown from the 0.5% increase posted for the three months to Sept. 30. Service revenue declined 1.1% in Europe on an organic basis to EUR7.50 billion. Vodafone's consumer businesses in Spain and Italy were hit by continuing price competition, while growth slowed in Germany. Earlier in January, Vodafone said it plans to cut up to 1,200 jobs in Spain, almost a quarter of its workforce. "Lower mobile contract churn across our markets and improved customer trends in Italy and Spain are encouraging. However, these have not yet translated into our financial results," Chief Executive Nick Read said. Mr. Read, who took over from long-serving head Vittorio Colao in October, told analysts that Vodafone's fourth-quarter looked set to be the trough of its European service revenue ahead of easier comparative periods in its new fiscal year. The prospect of further revenue decline spooked investors and Vodafone shares traded down over 4% by afternoon in the London session, hitting their lowest price since 2010. Organic growth also slowed in Vodafone's Rest of World segment, where a 4.9% increase fell short of the 7.7% achieved in the preceding quarter. Vodafone blamed lower data-revenue growth in South Africa amid a slowdown in consumer spending. Continued revenue decline has raised doubts over Vodafone's generous dividend payout, which now stands at 9% of its share price and has risen every year since 1990. Profits no longer fully cover the payout, which was frozen in November while Mr. Read tackles the company's EUR32.1 billion debt pile. Vodafone has options with its towers but also faces a threat from 5G spectrum," says RBC's Wilton Fry. "We regard the dividend as unsustainable even before we consider a macro downturn." Mr. Read has laid out plans to reduce operating costs by EUR1.2 billion by 2021. Earlier this week Vodafone struck a deal with Telefonica SA's (TEF.MC) O2 brand to share 5G, and potentially open the path to a sale of their joint-venture mobile mast business in the U.K. Vodafone maintained its guidance for underlying organic adjusted earnings before interest, taxes, depreciation and amortization--its preferred profit measure--to grow around 3% in the year ending March 31, and for free cash flow of around EUR5.4 billion. --Adria Calatayud contributed to this article. Write to Adam Clark at adam.clark@dowjones.com (END) Dow Jones Newswires January 25, 2019 10:40 ET (15:40 GMT)
10/11/2018
08:53
adrian j boris: Https://www.dailymail.co.uk/money/markets/article-6373389/Fears-Vodafone-dividend-shares-collapse-grapples-46bn-debt-pile.html Fears for Vodafone dividend after shares collapse as it grapples with £46bn debt pile By Matt Oliver For The Daily Mail Published: 21:51 GMT, 9 November 2018 | Updated: 21:51 GMT, 9 November 2018 Vodafone faces a battle to protect its £3.5billion dividend as it grapples with debts, costly network investments and price wars. The telecoms group is under pressure to spell out how it will maintain its payouts after launching a takeover of Liberty Global's European cable assets, a move that has taken its debt pile to around £46billion. It has also just spent £2.1billion buying airwaves for 5G services in Italy, in an auction that proved far more expensive than industry figures expected. Vodafone is under pressure to spell out how it will maintain its payouts after launching a takeover of Liberty Global's European cable assets +1 Vodafone is under pressure to spell out how it will maintain its payouts after launching a takeover of Liberty Global's European cable assets Analysts have raised doubts about its growth prospects, warning the company faces intense price competition in Italy, Spain and India. Since the start of the year, the share price plunged more than 38 per cent to nine-year lows, wiping £24billion off its value. Company veteran Nick Read, who took over from former boss Vittorio Colao last month, will present his first quarterly results as chief executive on Tuesday. He is expected to set out his vision for the group, including how it will take advantage of the Liberty Global deal, continue cutting costs and drum up cash from asset sales. One investor told the Mail there were questions over whether Vodafone would carry on paying its current dividend. However, talks with management about this had proved frustrating, the investor added. Vodafone veteran Nick Read will present his first quarterly results as chief exec on Tuesday Vodafone veteran Nick Read will present his first quarterly results as chief exec on Tuesday The Vodafone dividend has long made the company an attractive investment to British savers who have benefited from a steady income stream. Analysts have warned Vodafone faces difficult decisions if it wants to protect the dividend, which the company has not cut since first paying one in 1990. But in a note, JP Morgan argued a cut could make sense if the company wants to pay down debts quickly and asset sales and cost-cutting failed to raise enough cash. Russ Mould, investment director at broker AJ Bell, added: 'Concern about the dividend is one of the reasons Vodafone shares have been such a horror this year. The company is pointing to cash flow but what has got people spooked is the Liberty Global deal.' 'They are looking at it and saying 'You already had a lot of debt and that is now going to take it even higher, and at a time when general borrowing costs are going up not down'.' Speaking to investors in September, Read dismissed fears about the dividend and claimed the company had the cash flow to support it. He explained that Vodafone would aim to deliver a cash flow of nearly £15billion over three years, with around £10.5billion taken by dividend payments and £4.5billion left free to spend on airwaves needed for next-generation 5G mobile networks. However, the company says it only expects an annual spend of just over £1billion on 5G spectrum, or around £3.1billion over the period. Speaking in New York, Read told investors: 'We're confident in the dividend policy that we have and that remains the case. 'We did the Liberty Global transaction. Then we said we will de-lever over time, through two levers. One is the expansion of earnings; and the other one is disposal of assets.' He said assets that could be sold included the company's signal masts and towers. Shares closed 2.1 per cent, or 3.16p, lower at 143.92p.
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