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Velo
Im not decrying the assets purchased just the end point with the amount of debt. Maybe I am miss remembering the figures or how the debt levels would end up. I expected 27Bn + 18.4 Bn = 45.4Bn with the sale of some assets like NZ bring it down a tad.
In fact its 48.1bn and that includes the 2Bn for NZ and doesnt include the 3.5Bn convertible bonds, which should end up being bought back via the share buy back and some small, relatively Indian and Ziggo loans. I was expecting x3 max hence my concern at it being above.
Rightly you highlight profit over revenue and time will tell. Hopefully the next report will have more good news than bad, after all it should equal out over time and its the underlying trend not the spot issues that should drive forward.
SP back off a bit, was that following the market. Still its up prior to the update so maybe its just me
Meant to read I take that to mean final dividend will also be 4.5 eurocents so total 9 eurocents.
It says in the results
"Interim dividend per share of 4.50 eurocents, equivalent to 50% of the FY19 total dividend payout".
I take that to mean final dividend will also be $.5 eurocents so total 9 eurocents.
Maybe wrong though
Gerry, If you do find out about the divi policy, is it split 50/50 please let me know. I think it will be 1/3 to 2/3 so a 9 cent final divi, but I guess only if vod can afford it. Very unusual to have a 50/50. divi policy isn't it?
Gerry57 @ ". . . Debt is higher then the x3 predicted and when asked what the current level is, they asked to take that question off line. . . "
Gerry, Yes, and not disputing your dismay over net debt increasing dramatically, but look what the company is receiving in return for that debt, 9and hopefully some attempt is made to haul it in).
The increase in additional debt primarily relates to the purchase of the Liberty deal, so VOD gets the German business and some east European businesses, and just look at what that, means Quote:
". . . Group revenue increased by 0.4% to €21.9 billion, primarily reflecting a return to growth in our underlying business AND THE CONTRIBUTION FROM THE ACQUIRED LIBERTY GOLD ASSETS FOR TWO MONTHS, . . . "
So, what will the contribution be to the top line and the bottom line after a ful 12 months, if after only 2 MONTHS, it helped get revenue to show an increase over last year?
As sentiment rises and wanes the net debt is going to be brought up time and time again in media reports all the way to the finish line for the full trading year ending next spring/ early summer, as it should be.
Not defending the huge increase in debt. But there's debt that's for repairs new plant equipment etc., etc., in other words there's debt that shows no immediate benefit like having expensive roof repairs to your house. The benefits are slow to be realised, if the repairs are undertaken before leaks appear. But in this instance, the debt in purchasing Liberty after only 2 months contrinbution, is mentioned as a reason for the INCREASE in revenue. (I'm more interested in net profit (of which there is none this year :(
- But there is a pay-off for that debt and the pay-off goes straight into the books every single day henceforth.
Repeat: It's not an increase in debt that makes you swear under your breath, like say MOT repairs for your car, because it's for housekeeping and repairs etc., etc., It's an increase in debt that gives an IMMEDIATE contribution to the top and the bottom line.
Time will tell whether Read is spinning us a line or not. But there's debts, and then there's debts for buying an asset. There is a difference - in my view.
I think we may see a change in the Indian Gov policy Gerry - if Vodafone liquidates the company what message does that send out to foreign companies looking to invest in India ? - not a message you want to send out globally if you are a country trying to grow your own economy me thinks
dyor etc
Yes. The recent sp rise is a surprise to everyone I feel. Can't help thinking sentiment will turn negative again once investors have been suckered into buying up the slack.
Debt bigger than the announced deal costs too. Is this a timing issue with divi payments and spectrum costs plus india issues might explain the fcf of only 34m Euro. Going to have to go some in the second half to get that 5.4Bn or sell a lot
So results are out and as usual its a mixed bag. Gloss being added via savings, lower churn, improvements in income etc but then post a big loss ok it another "one off" So India isnt yet behind us. Management did say they wont be committing more money but are they going to let it sink?
Debt is higher then the x3 predicted and when asked what the current level is, they asked to take that question off line. Its due to get down to x3 at year end and then reduce to x2.5 in a few years. The "deal" was supposed to be fcf accretive but now fcf is only expected to be around not at least 5.4Bn Euro.
Not sure whats going on with the divi, Interim 4.50c was 4.84c so down only (7.0)%, Well that makes it look much better than the cut in divi announced previously. I might have to go back and check the divi policy is it split 50/50 now to make the 9 cents ?
What did the market think .... well the SP has risen on the news so maybe Im being glass half empty and that things whilst worse than expected will improve and maybe that gloss is shinier than I first thought.