George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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Safaricom, which is part owned by South Africa’s Vodacom and Britain’s Vodafone, launched its voice and data network in the Horn of Africa country last year and has signed up more than 2 million active users.
VOD continue to take over /cover the world to drive business
The combined business will invest £11 billion in the UK3 over ten years to create one of Europe's most advanced standalone 5G networks, in full support of UK Government targets.
VOD & 3 have already signed the deal and it will go ahead but will take a few months to get sorted. By having a best-in-class 5G network in place sooner, the merger will deliver up to £5 billion per year in economic benefit by 20304, create jobs and support digital transformation of the UK's businesses. Every school and hospital in the UK will have access to standalone 5G by 2030.
Just joining with 3 in the UK won't materially change the SP. Fundamentally we go from owning 100% of VOD UK Share of market to 51% of the 3 / VOD share of the market. But it should enable better economies of scale and improve the return on Capital, but the UK is only a small % of Vodafone, so no I dont think the merger with 3 alone makes this share worth materially more, but it moves it in the right direction, and some of the SP is depressed due to negative sentiment so small steps in the right direction help to move the SP in the right direction
Cannot believe this dogshxt still holding .70. Declining business model, drowning in debt and crushed by regulation and poor management, I mean ftse a no go area full stop since 2018 unless you want your capital vaporised but only reason I can think this is still holding 70 is some imbeciles believe the dividend will be held. Poor fools.
You could say that about absolutely any company. Make more profits = return more to the shareholders. What makes vodafone more appealing and likely to do it than any other company. Bear in mind those other companies are probable operating at a better PE ratio and have a better dividend cover starting point. Vodafone need to get the earnings to a place where the current dividend is sustainable before worrying about dividend growth.
Beo1,who says the city / market expectation that a Div cut is coming.
Who says the politcal fall out of rasing the dividend off the back of potentially getting the merger approved would be sizeable. no one is saying that only the de-rampers with negative points of view.
I don't care about any of that, just go and look at the Divi history for VOD , they were paying 10p ish from 2015-2018, so no reason not to go back to that with bigger turnover and bigger profits.
Jedclampit, sorry, but you are not factoring in the number of shares the dividend is payable on.
I am afraid you are comparing apples with oranges.
You are aware the Vod numbers included a large one off exceptional item. (Gain on disposal of Assets). You strip that out and the profit doesn't look as rosey, from memory the underlying profit doesn't even cover the dividend. Hence the market expectation that a Div cut is coming. Yes actions taking place will improve the dividend cover but don't expect any raise anytime soon. For one, the politcal fall out of rasing the dividend off the back of potentially getting the merger approved would be sizeable
Morning fleccy, but it's not all/only about free cash flow it's also about profits.
In the last set of results , BT's Rev was £20.68bn with profit £1.73bn Divi 7.7p
VOD 's Rev was $45.7bn with profits of $14.7bn and Divi 7.8p.
So VOD can afford Divi no trouble and once the new merged company gets moving with bigger turnover and bigger profits theres nothing to say the Divi can't be 8p-10p.
Time to buy more now as in the long term the SP is only going up from here, regardless of what other posters say.
Just to add to my last post, in Vodafone's case Free Cash Flow is only part of the picture for last year. If you want understand how Free Cash Flow relates to EBITDA and Net Debt, look at page 20 of the last set of results:
https://investors.vodafone.com/sites/vodafone-ir/files/2023-05/Vodafone-FY23-Results-Announcement.pdf
I can only give you examples from a description on the internet:
"Free cash flow is the money that the company has available to repay its creditors or pay dividends and interest to investors."
https://www.investopedia.com/terms/f/freecashflow.asp
Vodafone define Free Cash Flow as:
"Free cash flow is Adjusted EBITDAaL after cash flows in relation to capital additions, working capital movements in respect of capital additions, disposal of property, plant and equipment and intangible assets, integration capital additions and working capital related items, licences and spectrum, interest received and paid, taxation, dividends received from associates and joint ventures, dividends paid to non-controlling shareholders in subsidiaries and payments in respect of lease liabilities."
In Vodafone's case they tend to use an Adjusted Free Cash Flow figure with the adjustments comprising:
"Adjustments:
- Licences and spectrum
- Restructuring costs including working capital movements
- Integration capital additions
- Vantage Towers growth capital expenditure
- Other adjustments"
"Adjusted free cash flow is Free cash flow before licences and spectrum, restructuring costs arising from discrete restructuring plans, integration capital additions and working capital related items, M&A and Vantage Towers growth capital expenditure and other. Growth capital expenditure is total capital expenditure excluding maintenance-type expenditure."
Vodafone's Unadjusted Free Cash Flow was reported as €1.442 Billion, with Adjusted coming in at €4.842 Billion.
My question was a very serious one I feel, to mole, fleccy, or anybody else who can bothered to take it seriously. What is free cash flow? Why was vod considered a cash cow? We seem to have only 2 people left on her that have a clue what they are talking about in these matters. fleccy in the blue corner & mole in the red corner. Complicated I know, but just," I say up, you say down" is just pointless nonsense. (apart from roofers prophecy game of course)
Jax. Do you by any chance work for rent an idiot? If not, then apply. The vod sp on the nasdaq currently equates to 71.49. compared to the l.s.e. close of 70.63. Hardly tanking is it? Being stupid is nothing to ashamed of, but being proud to be stupid is very stupid.
Jax if you post something it should at least be true, for minimal credibility.
Tomorrow will be fun
Afternoon all,
I’ve got minimal skin in this game, so not kept up.
I was going to ask if the Divi has been mentioned from VOD, I was going to ask about news on it reducing at all, but I see comments below asking for it to increase…
Is the Divi running at 11% currently, or I got my bits and bobs in a tizz?
Free cash flow. Fleccy & mole. What does free cash flow actually mean? I think it is meaningless. Profit is what counts. We need the profit to be more than the dividend. Lets hope that will happen soon. There is nothing free about free cash flow. It comes at a cost.
"This statement needs correcting for the benefit of the easily led. From VOD’s own accounts, actual FCF is lower than the div payout."
Moleman, you're correct that actual Free Cash Flow came in at €1.442 Billion, but they did shell out €1.893 Billion in share buybacks and have knocked €8.203 Billion off Net Debt. I admit that I struggle understanding Vodafone's accounts, but I don't believe last years figures were that bad. I'd be interested to know what other negatives you want to highlight in respect of Vodafone's finances?
Biggest lol ever
This needs to break into the 6s
Once the merger goes through with 3 they will want to reward all shareholders with higher Divi's for the sake of the bigger company going forward.
I dont think VOD will raise the divi either due to currently low cover.
But the following needs correcting for the benefit of the easily led:
"It’s hard to predict SP moves but I do predict 1.40 is years off. It relies on rates falling to 1%"
There is zero back up or calculation behind this statement. How did mole man come up with the 1% ?? Why not 2%? Or 0.5%?
Just pure tripe.
The signs are they would be foolish to raise the div.
It’s hard to predict SP moves but I do predict 1.40 is years off. It relies on rates falling to 1%, in the absense of a strategy and plans to grow earnings meaningfully. Selling assets and mergers that shrink market share do not grow earnings.
Who says they will not increase the Divi, No one yet.
Vod have money coming in , they have the Merger deal with 3 .
Vodafone will receive further proceeds of €500 million, taking total net proceeds to €5.4 billion and the Consortium's ownership in Oak Holdings GmbH ("Oak Holdings") to 40%.
Will you be so negative when the SP hits £1.40 ?
“ Do you know what , with the large amount of free cash coming into VOD I wouldn't be surprised if VOD increased it's divi next time to 6p.”
This statement needs correcting for the benefit of the easily led. From VOD’s own accounts, actual FCF is lower than the div payout.
This company has financial stress currently hidden by selling essential assets.