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This should and will recover for sure. Such a giant of a company struggling is really overdone.
This is a really ridiculous situation to see the SP hoovering around 60p - 70p for a good while.
So I expect recovery is on the way when the SP reaches such low capitulation levels
I is in a holding patern. I noticed it were up goode early-ish. Don't feal like it will finish red tho. But you never nows...
Swisscom revenue static and capex in Fastweb up just 1% , although looking at AI solutions investment with NVIDIA tie up
Fastweb own network only reaches 8m homes, so far,
I think there is a lot to do before VOD decides Fastweb and Swisscom are the right partner fit
I trippled my holding this morning Carrington around 64p.
Swisscom profits today" boosted by growth in its Fastweb business in Italy." - that imo puts pressure on Iliad - if Swisscom were to go ahead with the VOD purchase that would fuel their Fastweb business which is already performing well in Italy - not good for Iliad, not good at all - I can smell a higher bid coming here from Iliad - I have increased my holding accordingly this morning
gla dyor etc
UPDATE 2 – Swisscom profit rises on Fastweb growth, declines comment on Vodafone talks
08:31
(Adds comment and background on potential deal with Vodafone in paragraphs 3-5)
By Mateusz Dobrzyniewski and Anastasiia Kozlova
Feb 8 (Reuters) – Swisscom met expectations with a 4.9% rise in full-year core profit on Thursday boosted by growth in its Fastweb business in Italy.
Fastweb is seeing accelerating growth in its customer base, with revenue from both business and wholesale customers increasing despite lagging broadband demand in a tough market environment.
Telecoms groups in Italy are exploring opportunities to consolidate a market grappling with shrinking revenue and margins.
Britain's Vodafone on Monday said it was in "active discussions" about a deal in Italy, after rejecting an offer from rival Iliad last month in favour of pursuing other options.
Sources have said one of those options is a deal with Swisscom's Fastweb.
A Swisscom spokesperson declined to comment on the matter in an email to Reuters, saying the company would not publish any additional statements on Thursday.
The group posted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 4.62 billion Swiss francs ($5.29 billion) in 2023 while analysts had expected 4.61 billion, a company-compiled consensus showed.
The former state telecoms monopoly said business in Italy continued to develop positively, with a 6.1% year-on-year increase in Fastweb's revenue to 2.63 billion euros ($2.84 billion).
For 2024, Swisscom expects revenue of around 11.00 billion Swiss francs, compared with 11.07 billion last year. It forecast annual EBITDA in a range of 4.5 billion to 4.6 billion francs.
The company said it would propose a dividend of 22 francs per share for 2023, unchanged from a year earlier. ($1 = 0.8731 Swiss francs) ($1 = 0.9275 euros)
I'm guessing we'll be treated to further SP erosion today. Margherita needs to put her hand in her purse and buy a load of shares. Quite frankly it would be outrageous if she doesn't, given the SP collapse since she took over as CEO. I'll keep an eye out for the RNS but I won't be holding my breath!
Correction, the combined market cap is 40bn, where vod's holding is worth ca20bn
Currently trading at 20bn, where vod's holding is more than 50%.
Says a lot about the dysfunctional markets and miss pricing. A reversal to the standard norm and mean is inevitable.
Polo Tang (UBS): Hi, thanks for taking the question. I have one question about Etisalat. Can
you clarify when they will take their seat on the Vodafone board? Are there any further steps
that need to be taken before this happens? Separately, have they given you any feedback on
where they would like to see the dividend and shareholder returns? Thanks.
Margherita Della Valle: On the timelines, we are still going through the process and as
Vodafone we are of course supporting the process with whatever information sharing is
required by the various authorities. However, it still needs to be completed and therefore we
will update you. We look forward to welcoming Hatem to the board and at that point having a
fuller conversation around the topics you mentioned. I think it would be really helpful to be
able to have these conversations once they join the board
Luka Mucic: Yes, I can only reiterate what we already covered at H1 earnings. First of all of
course we are very focused on generating capital. That is the whole focus on operational
excellence and certainly looking into all of the components of our end-to-end cash conversion
chain. I think over time I am sure we will have further opportunities with the customer,
simplicity, growth focus to also improve there. Then more importantly in the short term, in
terms of the capital allocation, we have covered briefly already on one of the previous
questions, the question around capital intensity, so nothing that would suggest any need for
any changes in that respect. In terms of the balance sheet I am pleased that I was handed a
very solid and strong one, actually with very long-term debt at reasonable interest rates. Also
in that respect there is no significant shift that anybody would need to expect. Then in terms
of the actual shareholder returns, yes, I am convinced that we have to look at a good mix of
different means. On the dividend front it is important to me to make sure that an ongoing
dividend is covered by the underlying free cash flow of the firm. Spain is going to change that
a bit but we will use all of the visibility that we have by then to then come up with the right
call. Nothing is decided and yes also share buybacks could then be part of the mix. In
particular, if we have sizeable one-off cash inflows like the one that we are expecting from
Spain at the closing of that transaction.
Akhil Dattani: Can I just clarify one thing Margherita on your first answer? Does that mean
that Italy in terms of whether it happens or not and the construct of any potential deal does
not necessarily impact? I guess it is quite a big asset for you, so I am trying to understand
how you can give clarity in May if potentially that deal has not yet materialised by that point.
Margherita Della Valle: Our intention remains to give clarity in May. As you can imagine we
will have the €4 billion proceeds from Spain coming in and therefore we do not think we
should delay any further, so we will update you in Ma
Hi Dan, this has been a tricky little bugger this one, just as you think it's stopped dropping it goes down a bit more, so i can understand how some are getting a bit frustrated here, but it has to stop somewhere, so how about we throw a bit of poo back at them on the way back up, that will be something to look forward to, and the sooner the better
best of luck mate
The price is going to keep decreasing because the big boys are avoiding VOD - now is the time for value investors and retail investors if you can find the bottom. To be honest, the enterprise value is already super low so the share price will only soar once the big boys join the game.
A share buyback for £1.8bn (10% of share capital max as authorised at 2023 AGM) seems sensible. It would reduce total dividends paid (c.£200m/year) while increasing EPS (due to reduced share capital), and thereby increase dividend cover to 1.7 (new EPS/dividend per share). Even Luka (CFO) alluded quite strongly to a buyback during Q&A - he just needs a bit of time to get comfortable around a sustainable dividend + capex. Remember he did 2 share buybacks in SAP and both times share price went up > 50%, so he knows what he's doing if a buyback happens. He may have to cut dividend per share because the cost of equity is too high (c.12% dividend yield) vs. cost of debt of 2.5%, but this would further increase dividend cover above 2. I'm willing to take a haircut on the dividend, and increase it 5-10% each year. After all, c.40% of CEO and CFO's remuneration is in shares, so they have an incentive to get this share price back up(e.g. MDV's average SP on previous share awards was 120p).
Once that is all done, VOD is sorted from a equity and debt front, and they can then turn their focus to pushing up the revenue line, whilst turning their shared operation cost centre into a profit centre (like charging Zegona £110m for Vodafone Spain, and I suspect the same for Vodafone Italy if a deal is struck).
Futher potential upside: Vodafone-Three merger, IoT business, shared operation cost centre, ORAN, Vodacom, Vodafone Italy, possible takeover (if Illiad is willing to pay €11bn for Vodafone Italy, I'm pretty sure they could partner with a PE fund to buy VOD at £18bn and sell its parts)
I look forward to the May FY results. We're in for a ride, but the destination is going to be very sweet because you could sell parts of VOD now, or VOD gets taken over (for very cheap), and we'll still win at the current price.
Hello rob. I hope you don't mind, but I would strongly dissagree with your comment "unfortunately for as long as this keeps dropping they are winning" They are not winning, any more than a monkey throwing his poo at you, or a dissruptive school child is winning. They are both losers. And I think most on here, would rather be losing there money, than be like jax or gutter.
SilverSpoons, I agree with your comments. I would add that during the last 2 years inflation alone has reduced by 15% the real value of Vodafone debt, making it much more sustainable in the long run, particularly if interest rates go down.
However, I am afraid that the share price will not recover significantly without some commitment from the main shareholders. My feeling is that they are occasionally shorting the stock.
Hi FLeccy
RE: Jax and Gutter just put out meaningless one liners aimed at upsetting people who are sitting on large paper losses
Of course they are mate, they are just trying to wind everyone up for a laugh, but surely nobody takes them serious, i know i don't, but it's got to the point here that only seeing is believing here for me
unfortunately for as long as this keeps dropping they are winning, so we will just have to take it on the chin, let's hope it can change direction, this share and Lloyds are definitely not ones for the impatient, and let's hope they will eventually be worth the wait, I have to be honest this has not been one of my easiest investments that's for sure
best of luck, we all need it
Cashflow easily covers debt interest. Chance of a small dividend cut, sure, but given the size of the cashflow no chance of any liquidity issues. Growth may not be spectacular, but has anyone looked out of the window lately, the UK and Eu have both been hit hard so you would hardly expect to see the sort of growth figures seen 10 years ago. Yes they may have overspent in the past, but the share price has dropped far further than the fundamentals justify. Fully expect this to be back up above 90p within 2 years, and 100p with 3, by which point the economy will have improved and shares will be back in popularity
Jax and Gutter just put out meaningless one liners aimed at upsetting people who are sitting on large paper losses. I'm among the people sitting on such paper losses and I could cry about it and put out doom and gloom, but instead of complaining I choose to top up, where I consider my stocks to be cheap, as funds become available. I could invest in other stocks, but I don't see any other stocks as cheap as the ones I already have holdings in. If someone has valid arguments as to why stocks are cheap, I'll happily debate it.
UK stocks are getting punished big time and they're cheap by historic standards, there's no reason to believe that'll always be the case.
https://www.reuters.com/world/uk/british-investors-dump-local-stocks-buy-american-calastone-2024-02-07/
Mole. If vod buy back shares at 63.6p & the share price goes up to £1, how does that not work? If however the sp goes down then it does'nt work, that is all I am saying, not rocket science is it? The big question is, are vod shares underpriced? As the Beatles might say, you say high & I say low!
We should have all realized by now that when Nick was blown out the last thing an organization like Vod should do was fill his role with someone with +25 years innocuous service to a strategy that is on a road to no where.
400p from Feb2001to 64p today reflects mismanagement not just by Nick or MDV but by an organizations strategy to overspend on aquisitions worldwide on a deluded view that size counts .
Vod [an inefficient bureaucracy] we all know is fighting for it's life. I regret don't have the solution.
I despair.
Buy backs tend to help maintain divi's
Buybacks don't work if you are not using gennuinely excess capital to do them with. Same with divs.
VOD are not redistributing excess capital. That is the bit the city does not like.
Buy backs work if you are buying back shares on the cheap. Are vod shares cheap? Worth more than the share price. I reacon the vod b.o.d. think so.
Would MDV take a Musk pay packet I wonder?
ZERO pay or perks, but 5% of the company if it reaches a market cap of 250bn by 2030? That would be £9.25 a share!
This is the deal that got cancelled in Delaware. No pay while you 10X the company cap. Zero if you only 9.99X the cap
Would she b6ll0ks
Buglet11, I have to agree with you on one thing, it's not jax and gutter that annoy me, it's the ones that pretend they don't mind if the share price drops so they can keep adding more, this is not a share that goes up and down in a range each year, it's kept on dropping for years, and nobody knows if it will go back up or by how much
like it or not jax and gutter are the ones getting it right at the moment and unless that changes we will just have to suck it up