Ben Richardson, CEO at SulNOx, confident they can cost-effectively decarbonise commercial shipping. Watch the video here.
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Nice to see that VOD have committed to the M'soft deal for ten years, this must give some confidence to the market (but not the zero IQ Muppet that is Jax, who by the way does not hold VOD shares)
Yep 150m may as well be zero
SP reacted accordingly imo
Seems to really be an announcement of VOD moving to azure and using Microsoft’s generative AI tools. 150m a year is nothing invested into AI space.
If you like it, buy Microsoft stock.
Buy backs work well for the company as they get to buy back more of their company with not much complaining from share holders and they save all that money when it’s dividend time.
Stupmy
For now ....it will help securing this before the next Quarter Results in February with the CEO having to face the analysts. At least it is a signed agreement and signs the BOD are making decisions and pushing on with forward strategy.
A separate company by April shows they have been working on it behind the scenes for a while and the signing and RNS are merely communicating work that has been done
It appears everything is all set to go and progress from here on and of course they have a big market volume of customers
In my many years investing, buy backs have never had their intended effect. Been involved in many blue chip companies who’ve engaged in several buy backs and they have never increased the sp as intended.
I didn't mean to belittle it by saying 'idea', it's clearly part of a strategy that aims to improve Voda's competitive position and bottom line. My point remains however, that until we see results, we don't know if it will deliver enough in the right time frame.
Clearly this is well past the 'idea' stage. Proof of Concept, prototyping etc will have already been done.
Https://www.lightreading.com/finance/is-vodafone-looking-to-exit-australia-s-tpg-telecom-
"Microsoft also intends to invest in Vodafone's managed IoT connectivity platform, which will become a separate, standalone business by April 2024."
That sounds fast, but it is good news at it will have its own budgets and balance sheet and show a view of its valuation.
But I get the distinct feeling it’s delaying the inevitable decline to the 5s by a day or two
Vod would be over1% down today without this news
Stealth
"Vodafone will invest $1.5 billion over the next 10 years in cloud and customer-focused AI services developed in conjunction with Microsoft." - This statement doesn't imply msft is getting the 1.5bn investment. Typically in such arrangements there will be a ledger of credit owed to, in this case, vod, based on the services rendered by msft.
Don't forget msft employs over 220k people, of which 80-90% are white collar workers who most likely qualify for a business mobile in addition to fixed line phones. In the 1.5bn, a portion is the credit towards the services offered for free.
Also, don't forget that vod has its in-house large army of engineers and developers which is also baked into this figure and the estimated R&D expense. Already Vod collaborates with Google and Oracle and would not be surprised if they bunch them all together as part of their efforts to lead this segment in business experience automation intelligently. You can't achieve an overarching business automation by maintaining disparate silos. Vod has already come a long way in harmonising their back-office processes and data quality.
Let's crunch some numbers based on a higher and lower band of expected msft spend on vod:
80% white collars--> 176k employees
upper band of average monthly spend per employee->50-->105m/year
Lower band of average monthly spend per employee->20-->42m/year
Over a 10-year period we have the following:
Upper band-->1.05bn
Lower band -->422m
If the truth lies somewhere in the middle, msft spent is ca700m over a 10 year period. I know its a simplistic calculation and would not be surprised if the contract designed to incorporate a min spend of 20/month/employee and the rest as variable to keep the costs down.
Dan
''Or are you getting a bit confused? To divi, or not to divi, that is the question?''
I think it was you who appears confused . Quite straight forward. Not paying the dividend would save about 11% per year of the current market cap per year . Using the money instead to buyback and cancel shares would quickly reduce the share count on which future dividends when resumed would have to be paid . If the money allocated to buybacks was restricted to about 9 cents per share at the start of a yearly programme, that would mean a reducing amount spent on buybacks over time.At the same time a reducing share count would be reflected in the relative price per share.
I am happy for a maintained dividend or zero dividends with an alternative of buybacks for cancellation,or a cut in dividend with a buyback as well.
It just seems a good opportunity to purchase and cancel shares whilst at a very low price.
It's a partnership with a business worth 2.8 trillion US dollars for heaven's sake... I'm new here and don't understand much about it but I'm topping up
Hope this works for the share price..
Feels 5-10yrs too late..
Feels like they don't have 10yrs though..
I hope they move fast and some real benefits come in 24/25.
Thy bigger change they need is the culture along with the efficiency this deal would bring.
Stealth, it's possible that this mornings little jump in the SP is just retail getting over-excited about the RNS. Maybe I'm wrong, but until something solid is delivered, this is just hope that a strategic development will improve the bottom line. Time will tell, but I didn't read it and think 'my goodness, I must buy now or I'll miss the bus'.
I see this more of a 'win' for Microsoft. While Microsoft may be offering Vodafone their cloud and AI services at a discount, it's Vodafone that are investing $1.5 billion in Microsoft. And once your infrastructure is all cloud based it's not easy to go back so subscription costs could spiral eventually. It would have been nice if the RNS had called out any projected monetary benefits in the short term for Vodafone. Hoping I'm wrong and the market see this differently.
Garonne, why do you say 'impressive', I see the possibility that it's dynamic, encouraging etc, but it's just an idea isn't it for the moment. Now they have to deliver on it and that will either be impressive or not?
Indeed a great update and a great milestone example of why vod is unique in this space. Through IoT, Mpesa and the impressive business services on a global scale, the true impact of the company will be felt by the industry.
Making the IoT services directly available on the azure market place will catapult the business will strengthen the category leadership. Not to mention msft commitment to invest in it.
Let's see how long it will take before people start typing "but what about debt, what about div" lol😂
Some news and quite impressive news too. Looks like there's life in the old Vod yet! Come on Margherita, let's have some more!
Let us hope it does work as intended.
jr
Hi Dan, well i'm definitely no expert, but like everyone else i'm always trying to improve, my funds i'm not concerned about because they are all in profit, the shares are a bit more tricky, i have some that are doing well, i have some others that are ok but could be better, then i have a couple that i keep asking myself w.t.f am i going to do with them
There are a lot of investors here that are a lot more experienced than myself, it's just about sharing opinions and quite often picking up tips from others
we don't always agree, but that doesn't matter
best of luck mate
Hi rob. Yeh, My opinion is, it could go up, or could go down. I don't know, so I will hold. Nobody on here knows. If they did, they would be far too rich to waste there time, posting on this forum. The price is very low, I agree, so I think it should go up, but if the market says otherwise, who knows? If you want the premium service, you have to pay extra! Have a good one Amigo.
Yes Dan, it's been accepted by myself, but you can't ignore which direction this has gone up until now, that's what we have been discussing, is whether we all think enough is being done to make this change direction, don't just take it for granted that it will go up just because you are thinking positive, you have to consider all options, that's what these boards are for, so people can give their opinions, as i said earlier, personally i think this is a very low price and think it can improve, and was asking what others are thinking