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Accolade this week goes to another new contestant " steveBT " well done
Vod closing Sp 24th Nov 71.74p
Speech Speech steveBT
Enjoy your weekend
Full list will follow..atb
I canr see them paying £25billion off the debt in the next few months.
Completely agree
If we clear 50% of the debt in the next few months, the risk of financing costs eating away at our EBITDA will start to fade and share price will respond positively
A more focused UK and German business will go down well I think. Focus on growing this business.
At the moment we are too big and in too many countries
The Swisscom interest in Vod Italy is just the start imo - with inflation dropping worldwide, interest rates will follow making it cheaper to raise money for takeovers - when companies are taken over the predator is ideally looking for a bottom fishing scenario with the economic headwinds turning positive - this scenario is playing out right now in front of your eyes - I added to my holding here this morning
gla dyor etc
I broadly agree with this article. Appreciate Motleyfool comes up with all sorts in their articles but I happen to agree
I reckon Vodafone will sell Spain and Italian businesses for c£15-£20bn to clear the major of their debt, this is will take a year to divest properly, leaving a healthy revenue and turnover.
Costs (energy and staffing to go ease)
£1.30 share price end of 2024 into early 2025. Take 4-7% in dividends each year and that makes me 100% profit in my ISA
Appreciate there are other companies out there that might give you multiples more but they are also higher risk.
https://www.fool.co.uk/2023/11/01/this-ftse-100-stock-could-rise-117-according-to-analysts/
Article identifies potential sale of Vod’s Italian operations to Fastweb, the smallest existing operator in Italy that is owned by Swisscom.
https://www.bnnbloomberg.ca/swisscom-s-fastweb-is-said-to-explore-deal-for-vodafone-italy-1.2002702
How times flies - I had only just realised that super deduction (130%) had ended.
The super deduction though has been superseded by 'full expense' 100%
Just sack the government, sack the the vodafone B.O.D,. & let the know it all's on this forum just take over?? usual moronic, armchair politics, from know it all's, that know no more than anybody else. Get a life??
A super deduction provides allowances of 130% on most new plant and machinery investments that ordinarily qualify for 18% main rate writing down allowances
a first year allowance of 50% on most new plant and machinery investments that ordinarily qualify for 6% special rate writing down allowances.
NOT a question of paying the same tax but at a different time.
Both will allow investing companies to lower their corporation tax bills.
The governments 130% super deduction and 50% first-year allowance are generous brand new capital allowances for investments in plant and machinery assets. Both will allow investing companies to lower their corporation tax bills.
Gutter, I think so.
'They conclude that another period of high inflation should be used to restructure government finances again.
This is exactly what is likely to happen in the next few years, as macro analyst Nick Giambruno explained.
The tool of choice for governments to access the people's money is government bonds. As an example, Giambruno cites inflation of 9 per cent and an interest rate of 4 per cent. The resulting real interest rate of -5 percent would lead to a continuous transfer of wealth from the lender (buyer of government bonds) to the borrower (government) amounting to 5 percent.
Those who now believe that they would not be affected by such a robbery because they do not hold government bonds are very likely mistaken. Because everyone who has a fixed-interest asset provision or a private pension plan will also be invested in government bonds without knowing it.'
Now you can argue whether derivative, put/ call options on the VOD SP hedging debt is driving the drop but #unt is is the chancellor
https://www.msn.com/en-gb/money/other/confiscation-of-private-pension-savings-what-is-the-government-planning/ar-AA1eAN3Q?ocid=msedgdhp&pc=U531&cvid=57b2e841ab7d4927963a6961de48425b&ei=9
Vodger - #unt has not damaged your share price 🤣😆🤣😆🤣😆🤣😆
For me, Hunt has slapped pension freedom pensioners in the face. VOD was £2+ when pension freedoms were introduced. Its 71p now. #unt thinks the asset value destruction is offset in favourable taxation when the VOD net assets are c.£2.39??
He might think he can snake his way through to a 2024 election but he doesnt get my vote. Not for this value destruction. Long run incremental cost boĺl##s. Just let the operators charge higher termination rates to improve their profitability and let the citizen/consumer vote on prices based on cost inflation in their household budgets.
It's obviously a big deal for BT since they're currently spending around £5 Billion a year in Capex; It's also a big deal for Vodafone, since they've committed to spend £11 billion rolling out stand alone 5G across the UK. The point i was making in my 15:30 post, is that any tax saving's coming through in the current high Capex years could reduce borrowing to fund said Capex; Or they could use the tax savings to increase following years Capex and speed up rollouts. No doubt their accountants will have worked out the best course of action.
I should add Time value of money is very important in appraising a finance CapEx investment. as the out years are normally discounted at nearly 9-10% per year, depending on the companies cost of capital. so being able to bank cash earlier is a huge win for Asset intensive companies.
I wasn't trying to say the tax change wasn't good, but correctly people who think it means the actual tax paid changes. as I said you pay the same tax just pay it later and that is still a big deal for Vodafone
Its time value of money. Paying £1b less in tax now costs a lot less than paying £1b less over an asset life of 10 years
Also, if you are constantly growing (through capital investment) then effectively you keep pushing the tax can down the road so to speak. EG if I spend £10m now I can tax deduct all of that in year 1, as opposed to £1m per year over 10 years, if I then spend £20m in year 2 then i get to tax deduct all of the £20m in year 1 (of 2 years in this example) but I am no longer getting the £1m from the first years £10m so the net change is £19m. if your replacement cycle is linear then once you catch up (eg go through a whole asset life cycle) then effectively it becomes the same amount (EG previously I would expense to years of capex a year at 1m per capex (eg 1/10th of £10m) x 10 years of capex). Now you expense each capex in year 1 for tax purposes, so now I'm get 1/1th of £10m x 1 year) - you see how on a flat capex its the same value?
Beo I have no doubt you're knowledgeable when it comes to tax, but Jansen (BT) pushed hard to have this made permanent, so it must be advantageous for telecom providers. Explain to me why Jansen made a big deal of this if there's little benefit?
OMG do you know how tax previously worked?
Previously you able to allocate 18% per year anyway. then when it was disposed you had what is called a pool balancing, which effectively let you claim the tax relief on any remaining NBV that hadn't already been claimed via the 18%
So it doesn't affect the amount or Tax you pay, it only affects the time you pay them
I'm an accountant who run's DCF's on fleet purchases so I know how tax depreciation works thanks
Merging with Three should save a bit of UK 5G capex anyway. It may be a way ahead in many markets to save on capex across the industry. Not much benefit anymore in having dedicated infrastructure at vast cost.
Telecom providers like VOD, BT and VMO2 are capex heavy businesses, not just during rollouts like FTTP and 5G, so making Full Expensing permanent is good for these companies; That said, Full Expensing during the current rollouts may reduce the need to borrow while the Capex is very high, which is a secondary benefit.
Why are you here? No thanksgiving for you..
Dalesflyer, insight like that is what we are all here for. If only all posters were like you, it would save a lot of time on reading all those balance sheets and reports.
Seriously, read your posting history back. Have you nothing at all to be cheerful about? There must be something other than the constant stream of misery you've posted. I realise a lot of the dales are in Yorkshire and therefore everything else is bloody rubbish, but even so get a grip man.
Beo1...
Full expensing is a 100% first-year allowance which allows companies to claim a deduction from taxable profits that is equal to 100% of their qualifying expenditure in the year that expenditure is incurred.
Spring Budget 2023 – Full expensing - GOV.UK
GOV.UK
It is NOT
"The only thing "Full Expensing" does is delay the timing of that tax payment, it doesn't stop it. "
Junk