Tue, May 19, 10:14 AM
- Vodafone (NASDAQ:VOD) is 3.8% lower in early U.S. trade, trailing its decline in London, after an earnings report that was encouraging for its revenue trends as well as solid growth in EBITDA despite fierce competition in its markets.
- Revenue grew for the first time in 11 quarters (boosted by results in the Middle East, Africa, and Asia Pacific) and the company forecast full-year core earnings growth (to £11.5B-£12B) after seven years of declines.
- Profit of £5.76B declined substantially but it was compared against a year-ago quarter when the company got a one-time contribution of £48.2B from selling its share of its JV with Verizon.
- The company had slightly more subscribers at quarter's end, totaling 445.8M mobile subscribers and 12M fixed-line (up from 11.8M).
- Citigroup analysts called the results in line -- "We see the positives as probably not quite positive enough to keep the stock moving up today."
- After earnings, Vodafone renewed its call on regulators to clamp down on BT Group's acquisition of EE, and for deal concessions to "avoid the re-creation of a giant, dominating company."
Tue, May 19, 3:59 AM
- Vodafone (NASDAQ:VOD) posted a rise in its quarterly sales measurement for the first time in nearly three years this morning, although the company's earnings remained under pressure. Net profit in the year to March 31 fell to £5.76B, from £59.3B a year ago.
- Heavy competition has hit Vodafone both abroad and in its home market, where it is the No. 3 mobile carrier. In the U.K., BT and EE recently agreed to combine, while O2 and Hutchison Whampoa decided to merge their mobile networks.
- Vodafone shares are down 2.7% in London.
Thu, Feb. 5, 4:22 AM
- A steady recovery in Europe helped Vodafone (NASDAQ:VOD) stem the rate of sales decline in its third quarter, as revenue rose 13.5% to £10.88B, beating market forecasts of £10.4B.
- Group service revenue, a key metric based on telecom-services sales, fell 0.4% excluding acquisitions and disposals, and on a constant currency basis. That compares with a 4.8% decline in the same period last year.
- Vodafone also reiterated its fiscal-year guidance of adjusted operating profit of £11.6B-£11.9B.
- VOD +1.2% premarket
Nov. 11, 2014, 4:33 AM| Comment!
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)
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)
Feb. 6, 2014, 3:27 AM
- Vodafone (VOD) FQ3 revenue dropped 3.6% to £10.98B but topped consensus of £10.86B ($17.91B) .
- Organic group service revenue -4.8%. In Europe, where Vodafone said conditions "are still difficult," sales dropped 9.6%, with Germany -7.9%, the U.K. -5.1% and Italy -16.6%. In Africa, Middle East & Asia Pacific, the figure rose 5.5%.
- Revenue was hurt by price competition in Germany and the U.K., as well as by weak southern European markets.
- However, the company said "the shift to 4G is gaining momentum," so it's optimistic that its "revenue performance will begin to improve."
- Vodafone reiterated its fiscal-year guidance for adjusted operating profit of £5B and free cash flow of £4.5-5B.
- The company didn't disclose profit figures.
- Shares are +1.5% in London. (PR)
Nov. 12, 2013, 2:39 AM
- Vodafone's (VOD) H1 EBITDA dropped 4.1% to £6.6B but topped consensus of £6.4B.
- Revenue +1.2% to £22.03B; on organic basis, revenue -3.2%.
- Pretax profit £1.51B.
- Takes £3B tax charge on $130B sale of its stake in Verizon Wireless.
- Confirms full-year guidance for adjusted operating profit of £5B, free cash flow of £4.5–5B.
- Vodafone intends to invest £7B ($11.18B) by March 2016 as part of its "Project Spring" to improve its network as it looks to cater to consumers who want to access the Internet with smartphones and tablets.
- Declares interim dividend of 3.53 pence a share, up 8%; intends to pay full-year dividend of 11 pence. (PR)
Jul. 19, 2013, 3:22 AMVodafone (VOD) FQ1 organic service revenue -3.5% to £10.155B; sales to Northern and Central Europe -3% due to "competitive intensity", with U.K. -4.5% and Germany -5.1%. Southern Europe -14.4%, with Italy -17.6% and Spain -10.6%. Sees good growth in Africa, the Middle East and Asia Pacific. Net debt -£2.1B on quarter to £24.9B. Reiterates full-year outlook. Expects to complete the €7.7B acquisition of Kabel Deutschland (KBDHY.OB) by the end of 2013. (PR) | 4 Comments
Jul. 18, 2013, 9:58 AMThe iPhone (AAPL +0.7%) accounted for 51% of Verizon Wireless' (VZ -2.4%, VOD -0.5%) Q2 smartphone sales. That translates into 3.9M iPhones, above estimates and good for a 44% Y/Y increase (up from Q1's +25%). Verizon also says it isn't interested in Leap Wireless (LEAP -0.2%), and calls its interest in entering Canada an "exploratory exercise." Retail postpaid net adds rose Q/Q, but Y/Y growth fell to 6% from Q1's 35%. Retail churn was 1.23%, -7 bps Q/Q but +12 bps Y/Y. Retail postpaid ARPA rose by $2.23 Q/Q to $152.50. Retail prepaid net adds totaled 97K vs. 43K in Q1 and 290K a year ago. Total wireline revenue -1.6% Y/Y, as business declines offset consumer growth. 2013 capex budget slightly raised to $16.4B-$16.6B from $16.2B. (Verizon Q2: I, II) | 5 Comments
May 21, 2013, 4:34 AMVodafone (VOD): FQ4 organic service revenue -4.2% (in line, but worst quarterly drop on record): -12.8% in Italy and -11.5% in Spain. Impairment charge of £1.8B in Italy, bringing total impairments for Spain and Italy to £7.7B for the full year during which sales were down 4.2%, to £44.4B and core earnings were off 3.1% to £13.3B. Adjusted operating profit beats, rising 9.3% to £12B. The company said it will keep its 45% share of Verizon's (VZ) dividend payment to shore up operations. | 4 Comments
Apr. 18, 2013, 10:56 AMMore on Verizon: Verizon Wireless' performance is taking center stage as shares rally. Service revenue rose 8.6% Y/Y, while equipment sales fell 1.4% (evidence of Verizon's efforts to lower subsidies). Retail postpaid net adds rose by 677K, and total retail net adds by 720K. Wireless operating income margin rose 430 bps Y/Y to 32.9%. Retail postpaid churn rose 6 bps Q/Q and 5 bps Y/Y to 1.01%. Vodafone (VOD +2.2%) is rallying in response to VZW's numbers, and CC comments about Verizon being "extremely confident" it can buy Vodafone's stake without taking a tax hit. | 2 Comments
Feb. 7, 2013, 3:33 AMVodafone (VOD): FQ3 revenues -2% to £11.39B vs consensus of £11.29B. Profit figures not provided. Results "continue to reflect very difficult market conditions in Europe," with Spain and Italy particularly hit, although growth in emerging markets continues. Data revenue +12.8% as European smartphone penetration rises to 33.4%. Shares +2.1% in London. (PR) | 1 Comment
Jan. 9, 2013, 9:29 AMVerizon Wireless (VZ, VOD) says it expect to report 9.8M smartphone activations, "with a higher mix of Apple smartphones," for Q4. That figure is up 29% from the 7.7M smartphones activated a year ago, and 44% from the 6.8M activated in Q3 (46% of them were iPhones). Verizon's Y/Y growth rate is easily above that of AT&T (T - previous), which is more iPhone-dependent, but its Q/Q rate is slower. The smartphone sales, together with strong indirect channel growth, will lead to a slight Y/Y drop in EBITDA service margin. VZ -0.5%. AAPL -0.7%. (CEO remarks: I, II) Update: Verizon PR tells Seeking Alpha the iPhone mix was higher relative to both Q3 (46% of smartphone sales) and Q4 2011 (56%). | 22 Comments
Nov. 13, 2012, 3:39 AMMore on Vodafone (VOD) H1: Organic service revenue growth -0.4%: N. Europe +1.5%, S. Europe -9.8%, AMAP +5.2%. To buy back £1.5B in shares. Expects to receive £2.4B dividend from Verizon Wireless by the end of the year, as per the latter's $8.5B payout to Verizon and Vodafone. Declares interim dividend of 3.27 pence, +7.2% from a year earlier. Shares -3% in London. (PR) | Comment!
Nov. 13, 2012, 3:27 AMVodafone Group (VOD): Swings to H1 loss of £1.98B from a net profit of £6.68B last year, hit by impairments of £5.9B for Spanish and Italian ops due to tough conditions and increased discounts. Adjusted operating profit +8.5% to £6.2B. Revenue -7.4% to £21.78B vs consensus £21.82B. Says FY adjusted op profit should reach "upper half" of £11.1B-£11.9B range. (PR) | 1 Comment
VOD vs. ETF Alternatives
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.
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