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Vodafone Group Plc ? FY22 Preliminary results
17 May 2022
Good financial performance with growth in revenues, profits and cash flows
· Good service revenue growth in FY22 with continued growth in both Europe and Africa throughout the year
· Good financial performance in Germany with 1.1%* service revenue growth and 6.5%* Adjusted EBITDAaL growth
· Strong step up in pre-tax ROCE of 1.7 percentage points to 7.2%, supported by operating profit growth of 11.1%
debt is up not great
Overall ok results
If you have a look it was used to buy back shares
Good results against an increasingly negative rhetoric. Room for a small relief rally.
Yep 6,074,518 shares bought back into treasury yesterday. I would prefer if they where cancelled but I guess they will need them to pay for redemption of the new style bonds that pay out in vod shares.
Big historic problem here is the huge debt, and it's going up!!??
Pretty good overall.
When is the divi?
Ex divi 16/06
"debt is up not great"
With the share price being so low, the share buybacks were the obvious choice to prevent dilution. Any extra shares, that would have been created to satisfy MCB's, would have meant more dividend costs going forward.
"Net debt at 31 March 2022 was €41.6 billion, compared to €40.5 billion as at 31 March 2021. Net debt increased by €1.1 billion due to share buybacks of €2.0 billion (1,441 million shares) used to offset dilution linked to mandatory
convertible bonds, partially offset by Free cash flow of €3.3 billion less equity dividends paid of €2.5 billion."
The increased debt was already known & priced in but is very possitive now however the dividend is easily covered by Adjusted basic earnings per share. There is a sound strategy for debt reduction with M&A i.e Vod & 3 merger in UK rumoured to be funded by equity swap rather than new borrowing. These kind of deals will make the debt easily serviceable. GLA
Good to get a PE ratio that means something- by my calculations we are on 19.44 based on basic EPS of £0.062.
Headlines were good but delve deeper and flat prospects for 2023 and rising debt will not ignite confidence
"When is the divi?"
"Total dividends per share are 9.0 eurocents (FY21: 9.0 eurocents), including a final dividend per share of 4.5 eurocents. The ex-dividend date for the final dividend is 1 June 2022 for ordinary shareholders, the record date is 6 June 2022 and the dividend is payable on 5 August 2022"
Very much steady as she goes results. At the bottom end of revised guidance. Dividend seems safe but no chance of an increase either. Forward guidance is pretty much flat. As I suspected, the growth in revenue is going to get eaten up by rising costs.
Might very well see a relief raleigh, but I’m still concerned about how yield decompression could effect the price over the medium term with rising interest rates
I found with VOD to only look at the balance sheet. Equity down despite an apparent accounting profit. Accumulated losses up due essentially to divi coming from equity (debt). Just reasons why the market will not be that impressed.
fleccy ive got ex div 16th june....pay date 29th of july.......dont understand your dates
Dividend needs to be reduced to start to clear debt...
"fleccy ive got ex div 16th june....pay date 29th of july.......dont understand your dates"
My dates were pasted straight out of the Chief Executive Statement.
https://investors.vodafone.com/sites/vodafone-ir/files/2022-05/FY22-Press-release-Final.pdf
"Total dividends per share are 9.0 eurocents (FY21: 9.0 eurocents), including a final dividend per share of 4.5 eurocents. The ex-dividend date for the final dividend is 1 June 2022 for ordinary shareholders, the record date is 6 June 2022 and the dividend is payable on 5 August 2022"
thank you fleccy...atb.
Vodafone seems to exist for the benefit of banks and bondholders who are at the higher end of the food chain, whilst shareholders are more at the bottom end ...
The banks etc lend to Vodafone because they have big cash flows and can handle the interest costs and they just re-finance the debt over and over again
They had a problem where the ROCE was less than the interest payment returns which was disastrous...but Read has improved that over the last 18 months ....he needed to achieve that
but...they still pay debt costs on infrastructure than no longer exists as it has been phased out and as such they rely on all the new investment to pay for the cost of the redundant stuff...that has accumulated debt still on it
The dividend is a joke ... they give it to you in one hand and take capital value from the other as the debts rise to pay for it...
The new investor is an interesting move and maybe the success here can come from a reduction of CAPEX now that 5G is almost in place and IoT investment is putting the next phase ready for revenues there ..plus breaking up the group and getting value from Africa and selling non-core areas
"The dividend is a joke ... they give it to you in one hand and take capital value from the other as the debts rise to pay for it."
The dividend is an anomaly, when you consider it's 9 Eurocents with Basic EPS of 7.20 eurocents, but I trust they know what they're doing. I suspect earnings are expected to rise significantly in the coming years, with the dividend rmaining at the current level. If you trust that earnings will increase, and you don't need the cash, it would make sense to reinvest future dividends back into the stock.