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Vodafone Group plc (VOD)

- NASDAQ
  • Sep. 2, 2014, 10:38 AM
    • The Nikkei speculates SoftBank (OTCPK:SFTBF) could make an offer for Vodafone (VOD +0.5%), given a Sprint/T-Mobile deal is off the table for now. Vodafone has turned positive after starting the day in the red.
    • Though Sprint/T-Mobile has been shelved, SoftBank just raised $3.9B in debt, a move viewed by many as a precursor to fresh M&A activity. Moreover, SoftBank will soon have a chance to monetize its 34.1% Alibaba stake (could be worth over $60B pre-tax following the IPO).
    • Nonetheless, Vodafone ($91B market cap) would be a very big fish for SoftBank ($87B market cap) to digest. This isn't the first time speculation about a deal between the carriers has emerged.
    • Previous: Questionable Vodafone/AT&T rumor emerges
    • Update (1:05PM ET): Shares have given back their gains, and are now down 0.6%.
    | Comment!
  • Aug. 22, 2014, 10:03 AM
    • Vodafone (VOD +1.3%) is paying €72.7M ($97M) to acquire a 72.7% stake in Greek broadband/phone service provider Hellas Online. The deal will bring Vodafone's total stake above 91%, and is expected to close in Q4.
    • Hellas had 519K customers at the end of 2013, good for an estimated 11% local share. It had 2013 revenue of €227.4M, and EBITDA of €68.4M.
    • The deal follows Vodafone's acquisitions of German cable provider Kabel Deutschland and Spanish cable provider ONO, as the carrier pushes ahead with its goal of offering mobile/wireline bundles (both by itself, and via partnerships) throughout Europe.
    • Separately, The Daily Mail has passed on a rumor that AT&T's (NYSE:T) advisers are now "working around the clock on a cash bid worth more than £3 a share" for Vodafone.
    • The rumor should be taken with a heavy dose of salt, given: 1) AT&T is currently preoccupied with closing the DirecTV acquisition. 2) It implies AT&T would be paying a 46% premium to Vodafone's current London trading price, and valuing the company at ~$130B. 3) AT&T, which has a $179B market cap and $84B in debt, would be very hard-pressed to finance a ~$130B deal solely with cash.
    • A 6-month prohibition on an AT&T bid for Vodafone ended in July. However, AT&T CEO Randall Stephenson stated in March "the window may be closing" for his company to acquire European wireless assets, and is reportedly unhappy with Vodafone's wireline expansion efforts.
    | 4 Comments
  • Aug. 20, 2014, 2:33 PM
    • Brazilian paper O Estado de S. Paulo reports Vodafone (VOD -0.8%) is mulling an acquisition of TIM Participacoes (TSU -0.5%), Telecom Italia's (TI -0.1%) Brazilian mobile/wireline unit.
    • The paper states Vodafone, hungry to expand after receiving its Verizon Wireless windfall, would prefer to enter Brazil by taking a majority stake in one of the country's 3 top mobile carriers - giants Telefonica and America Movil control the other two - rather than by participating in an upcoming 4G spectrum auction.
    • TIM is estimated to have 26.9% of the Brazilian market, Telefonica's Vivo 28.7%, and America Movil's Claro 24.9%.
    • TI's own M&A plans could stand in the way of a Vodafone offer: The Italian carrier is reportedly weighing a bid to acquire Brazilian wireline carrier GVT, with the goal of trumping an existing offer from Telefonica and merging GVT with TIM.
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  • Jul. 25, 2014, 11:02 AM
    • On an organic basis (backs out forex and M&A), Vodafone's (VOD +2.6%) service revenue fell 4.2% Y/Y in FQ1 to £9.45B ($16.01B), a slightly bigger decline than FQ4's 3.8%.
    • European service revenue fell 7.9%, while all other markets grew 4.7%. However, the latter was down double-digits if forex is accounted for; weak Indian, Turkish, and South African currencies were responsible.
    • Vodafone's European mobile sub base fell by 1.77M to 127.1M - 878K subs were lost in Italy, 366K in Germany, and 236K in Spain. 80K were added in the U.K. With sub losses, declining voice/text revenue, and termination fee rate cuts taking a toll, service revenue fell 16.1% in Italy, 15.3% in Spain, 4.9% in Germany, and 3.2% in the U.K.
    • Mobile subs in all other markets grew by 6.37M to 303.7M (166.6M in India). 3.3M subs were added in India, and 3M by the African Vodacom unit. Service revenue grew 10.3% in India, and was flat in Vodacom markets (hurt by South African termination fee cuts). Europe is still 68% of service revenue.
    • £1.87B was spent on capex (£600M related to Project Spring), leading free cash flow to total -£582M. Net debt grew by £400M to £14.1B ($23.9B).
    • Press release (.pdf), earnings slides (.pdf)
    | 2 Comments
  • Jul. 21, 2014, 2:13 PM
    • Vodafone (VOD -0.8%) and Portugal Telecom (PT +4.3%) plan to "deploy and share" and fiber networks covering 900K Portuguese homes through a 25-year deal that begins in December.
    • Vodafone, which has set an ambitious goal of offering mobile/wireline bundles throughout Europe (through a mixture of M&A, investments, and partnerships), notes the deal furthers its effort to provide fiber to 1.5M Portuguese homes by mid-2015. 1M+ homes are already covered.
    • The company has previously said it's open to buying a Portuguese cable provider, as it continues battling with both PT and local cable leader Zon Multimedia.
    • Meanwhile, Vodafone's Egyptian unit (55%-owned) says it plans to spend $1.3B over the next 3 years to strengthen its mobile network, and is still exploring the idea of offering wireline services. Last year, Vodafone said it would spend £1.5B ($2.5B) through FY16 on expanding 3G coverage in Asia-Pac and Africa, via Project Spring.
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  • Jun. 25, 2014, 1:53 PM
    • Reuters reports the EU is set to unconditionally approve Vodafone's (VOD +0.8%) $9.8B purchase of Spanish cable provider ONO. The EU previously set a July 2 deadline for its decision.
    • Vodafone, which has 25% of a Spanish mobile market that has been seeing steady revenue declines, plans to use ONO to offer quadruple-play packages. The carrier bought German cable provider Kabel Deutschland for $14.2B last year as part of its effort to offer mobile/wireline bundles in big European markets.
    • Shares are up moderately today, aided by an upgrade to Outperform from Macquarie.
    | 2 Comments
  • Jun. 18, 2014, 2:19 AM
    • After reporting yesterday that AT&T will be the exclusive provider in the U.S. for its new smartphone, Amazon (AMZN) is now in talks to determine who will be its provider in Europe.
    • The company has spoken to O2 (TEF) and Vodafone (VOD) in the U.K. If it chooses the latter, it would extend the two's relationship, as Vodafone provides the data plans shipped with the Kindle and the company's e-readers.
    • Amazon is set to reveal the smartphone rumored to feature a 3D display at an event in Seattle later today.
    | 3 Comments
  • Jun. 16, 2014, 3:44 AM
    • Vodafone (VOD) has announced it plans to buy Cobra Automotive Technologies for €145M ($197.5M).
    • The acquisition will increase Vodafone's machine-to-machine capabilities, and provide a greater amount of services to automotive customers.
    • The offer is still pending antitrust approvals, and is expected to complete in the third quarter of 2014.
    | 1 Comment
  • Jun. 6, 2014, 5:24 AM
    • Vodafone (VOD) says that phones on its network are tapped in some of the 29 countries where it operates. The company exposed that secret wires allow government agencies to listen to live conversations and record them on its global network.
    • The company also states that customers have a right to privacy, but it still has to obey the laws of each country in which it operates. "Refusal to comply with a country's laws is not an option," says Vodafone.
    | 2 Comments
  • Jun. 2, 2014, 3:10 AM
    • Samsung (SSNLF) has announced its first commercial smartphone using the Tizen open-source platform. The Samsung Z featuring the new system will be available in Russia in the third quarter before expanding to other markets.
    • Tizen is being developed with companies including Intel (INTC) and Vodafone (VOD).
    • The new platform is revolutionary for Samsung, as the company is the world’s biggest maker of mobile devices using Google’s (GOOG, GOOGL) Android operating system.
    • Previously, Tizen was only used on Samsung smartwatches. The watches went on sale in April.
    | 17 Comments
  • May 29, 2014, 4:15 AM
    • Sprint (S) Chairman Masayoshi Son reasons that the rise in telecom and cable mergers should allow his company to buy rival T-Mobile (TMUS). Three big mergers have taken place in recent months with Verizon (VZ) acquiring Vodafone (VOD) for $130B, Comcast (CMCSA) buying Time Warner Cable (TWC) for $45B, and the AT&T (T) purchase of DirecTV (DTV) for $49B.
    • "Access to the Internet is currently dominated by three giants with no sizable competitor," says Son.
    • Although the company has not yet made a formal bid on T-Mobile, it looks to lay the framework for a future purchase.
    • Antitrust authorities have previously frowned on such a deal, as it would cut the number of national competitors in the wireless industry to three from four.
    | 9 Comments
  • May 20, 2014, 3:20 AM
    • Vodafone's (VOD) FY EBITDA dropped 5.4% to £12.8B as revenue slipped 1.9% to £43.6B, hurt by the carrier's exposure to sluggish European markets.
    • Net profit attributable to shareholders soared to £59.25B from £413M a year earlier, boosted by the sale of Vodafone's 45% stake in Verizon Wireless for $130B, for which the British carrier received a one-off contribution of £48.2B.
    • Adjusted operating profit dropped 37% to £7.67B, mainly due to a much lower contribution from Verizon Wireless before it was sold.
    • In Q4, organic service revenue declined 3.8%, although that was slightly less than consensus of -3.9%.
    • Expects FY 2015 EBITDA to drop to £11.4-11.9B.
    • "Our operational performance has been mixed," says CEO Vittorio Colao. While Vodafone's "emerging markets businesses have performed strongly," in Europe, the company continues "to face competitive, regulatory and macroeconomic pressures."
    • Vodafone declared a final dividend of 7.47 pence a share, giving total dividends of 11 pence, up 8%. (PR)
    | 3 Comments
  • May 16, 2014, 5:37 PM
    | 1 Comment
  • May 14, 2014, 7:53 PM
    • Citing lower acquisition odds, Goldman has downgraded Vodafone (VOD) to Neutral.
    • The downgrade comes amid widespread reports AT&T is closing in on a deal to acquire DirecTV, a move that (provided regulators sign off) would make it quite unlikely Ma Bell would bid for Vodafone.
    • Yesterday: AT&T, Vodafone slide following DirecTV reports
    | 20 Comments
  • May 13, 2014, 11:00 AM
    • Bloomberg and WSJ reports suggesting AT&T (T -1.3%) is close to a mega-deal for DirecTV (DTV +0.7%) (possibly worth over $66B after factoring net debt) are leading investors to bet Ma Bell won't be interested in making a bid for Vodafone (VOD -2.2%), something the company has been frequently rumored to be interested in exploring.
    • AT&T CEO Randall Stephenson has already said "the window may be closing" on acquiring European assets, and has suggested he isn't thrilled with Vodafone's efforts to grow its wireline footprint via M&A.
    • For his part, Vodafone CEO Vittorio Colao has hinted he's open to a deal, but has also made it clear his company will continue its wireline expansion strategy in the interim.
    • AT&T, which didn't sell off following prior DirecTV reports, is off moderately today, as the Street expresses some concern over the potential $100/share price tag mentioned in Bloomberg's report.
    • DirecTV (DTV +0.7%), meanwhile, has pared its AH gains and is now only trading near $88. Worries about regulatory approval might be playing a role; a Bloomberg source states AT&T and DirecTV are expecting a 12-month regulatory process for the deal.
    | 7 Comments
  • Apr. 20, 2014, 3:24 AM
    • French mobile operator SFR is poised to announce a network-sharing venture with Vodafone (VOD) in the coming days, CEO Jean-Yves Charlier has said.
    • The partnership will cover several areas and will give SFR's professional clients access to Vodafone's network world-wide.
    • News of the prospective collaboration comes after SFR's parent, Vivendi, agreed to sell the unit to cable operator Numericable Group.
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Company Description
Vodafone Group PLC is engaged in providing voice and data communications services for all types of customers. The Company has presence in Europe, the Middle East, Africa, the Asia Pacific region and the United States.