Fri, May 22, 10:18 AM
- Vodafone ADRs (NASDAQ:VOD) are up 1.7% (and shares up 4.4% in London) as Goldman Sachs reports after meeting with company management that Vodafone may sell some assets.
- With Vodafone moving up this week (ADRs +7.4% since Tuesday) on John Malone's comments that his Liberty Global (LBTYA +2.4%) and Vodafone could be a "great fit," Goldman's Tim Boddy says Vodafone "is willing to consider both acquisitions and disposals where the financial rationale makes sense" and "may be more likely a seller than a buyer of assets."
- He attributed that to Liberty's preference for tax efficiency vs. Vodafone's preference for dividends -- part of stylistic differences that Malone himself alluded to: "Their philosophy is low leverage, low risk and high cash payout to their shareholders. I prefer to grow equity value."
Tue, May 19, 6:08 PM
- Liberty Global (NASDAQ:LBTYA) rose into today's close, +2.3%, as telecom titan John Malone says a combination of his firm and Vodafone (VOD -0.9%) would be a "great fit" with "very substantial synergies if we could find a way to work together or combine the companies with respect to Western Europe."
- Malone was making his first public comments on a combination in an interview with Bloomberg, though he wouldn't comment on whether the companies were talking. A tie-up would create a telecom behemoth, between Liberty's $45B in market value and Vodafone's $93B.
- Citigroup has said a stock-based combination could generate synergies of £1.4B/year in free cash flow. But Malone is aware of philosophical differences in approach: “Their philosophy is low leverage, low risk and high cash payout to their shareholders. I prefer to grow equity value.”
- Liberty has been acquisitive in Europe and is also seeking targets in faster-growing South America, and Mexico -- a market Malone considers most attractive.
- Previously: Vodafone -3.8% following signs of life in FQ4 earnings (May. 19 2015)
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, Feb. 24, 8:02 PM
- U.K. mobile firms are likely looking at a license fee increase as regulator Ofcom follows its government mandate to ensure spectrum fees reflect market value.
- EE (ORAN, OTCQX:DTEGY) -- on its way to becoming part of BT Group (NYSE:BT) -- Three (OTCPK:HUWHY), O2 (NYSE:TEF) and Vodafone (NASDAQ:VOD) could see fees for the 900 MHz and 1800 MHz bands rising to a total £223.3M/year ($345.5M/year) -- up from the combined £64.4M/year they pay now.
- Considering proportional increases, EE might see its current £24.9M/year rise to £75.6M.
- Related mobile stocks were up today, with the exception of Vodafone, which saw a downgrade from Bank of America: ORAN +1.7%; OTCQX:DTEGY +1.9%; TEF +1.4%; OTCPK:HUWHY +0.3%; VOD -3.3%.
- Previously: Vodafone lower after BofA downgrade (Feb. 24 2015)
Tue, Feb. 24, 3:00 PM
- Vodafone (NASDAQ:VOD) ADRs are trading 3.4% lower in the wake of a downgrade by Bank of America, to Underperform from Neutral.
- That's despite a reiteration today by JPMorgan Chase of its Overweight rating, and its price target on London shares of £265/share. (Vodafone closed in London today at £226.52, -2.7%.)
- ADR shares are trading at $34.76 and are down 15.6% over the past year.
Wed, Feb. 18, 11:14 AM
- In more details from 13Fs: John Paulson's Paulson & Co. closed its entire stake in Vodafone (NASDAQ:VOD) by Dec. 31.
- Paulson had a stake of 26.7M shares ($927.6M at today's price), which made up 3.65% of the fund's portfolio.
- The fund did add nearly 320K shares to its T-Mobile (NYSE:TMUS) stake.
- Paulson also added to stakes in Time Warner Cable (NYSE:TWC), boosting that stake by 18%, and DirecTV (NASDAQ:DTV), adding 9% to that stake.
- VOD shares are down 2.1% today, and are now up just 1.6% YTD.
Thu, Feb. 5, 9:54 AM
- BT Group (NYSE:BT) running fast at +6.2% today in the wake of news of its agreement to buy EE for £12.5 billion ($18.98 billion) in cash and stock.
- The combo of the country's biggest fixed-line telecom and biggest mobile operator allows for bundle sales of communications services, and gets BT more than 30M customers (24.5M direct mobile, 834K broadband) not to mention a phalanx of 580 retail stores.
- The UK has been slow to offer customers "quad" bundles of fixed telephony, mobile, broadband and TV -- but it's getting there.
- BT expects the deal will pass regulatory muster and go through by the end of its fiscal 2016.
- Vodafone (NASDAQ:VOD), playing catch-up in the UK broadband market, will still press for heavier regulation of a BT-EE combination that will have significant market share. “The important thing is that the regulator has an eye [on] how the new, large BT continues to grant access to their network,” said Vodafone CEO Vittorio Colao.
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
Mon, Jan. 5, 9:57 AM
- With Greece and oil-related fears once more taking a toll, The Euro Stoxx 50 is down 2.1%, and many continental indices posting ~2% declines. U.S.-traded European tech and telecom names are performing much the same way.
- Tech decliners: NOK -4.2%. ALU -3.3%. SAP -2.9%. STM -2%.
- Telecom decliners: VOD -2.4%. TEF -4%. ORAN -3.6%. TI -2.2%. PT -6%.
Dec. 5, 2014, 3:25 AM| 1 Comment
Nov. 28, 2014, 1:07 PM
- Bloomberg reports Vodafone (VOD +2.6%) is exploring a "combination" with European cable giant Liberty Global (LBTYA +7.4%). Liberty has soared on the news.
- Liberty operates in 14 countries (12 in Europe), passes 52M homes, and claims 27M customers and trailing annual revenue of $20B. Vodafone has already acquired Spanish and German cable giants ONO and Kabel Deutschland, and has declared it wants to offer mobile/wireline bundles throughout Europe.
- Earlier: UBS upgrades Vodafone
Nov. 28, 2014, 10:02 AM
- UBS has named Vodafone (NASDAQ:VOD) a Key Call Buy, and predicts the carrier will benefit from mobile data growth and improving German, Spanish, and Italian sales.
- Also: Consolidation in the U.K. mobile market now appears likely, with both BT and 3 U.K. owner Hutchison Whampoa expressing interest in buying either Telefonica's O2 or Orange/Deutsche Telekom's EE. Vodafone recently committed to offering bundles featuring mobile, wireline voice, broadband, and TV services to U.K. customers, as BT and EE make their own moves to offer the same.
Nov. 11, 2014, 9:17 AM
Nov. 11, 2014, 4:33 AM| Comment!
Oct. 16, 2014, 10:09 AM
- New worries about the health of Greece's troubled banks have contributed to a selloff in European markets, one that has taken a toll on the continent's debt-laden telcos. The ECB is reportedly mulling a funding package for Greek banks.
- Decliners: VOD -3.1%. TEF -4.2%. ORAN -4.5%. TI -6.5%. PT -3.9%.
Oct. 9, 2014, 9:48 AM
- Nomura's James Britton has downgraded Vodafone (VOD -2.8%) to Neutral, and lowered his target by 10p to 180p.
- Britton observes Vodafone trades at a slight forward EBITDA premium to peers (7x vs. 6.5x), and thinks competitive pressures could grow over the next 12 months.
- He forecasts new market entrants in the U.K., India, and the Netherlands, tougher competition from existing carriers in Germany, South Africa, and Turkey, and further cannibalization of voice revenue by data services among European business clients.
- U.S. shares are close to their 52-week low of $31.87.
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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