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Porsche, it is churlish to say that buybacks are a complete waste of money. If VOD do as they say they will & spend 4 billion buying shares this is a saving of 88 million pounds on dividend payments alone.
Lebara is the elephant that makes it hard for other mobile network operators to make a decent return. They don't, as far as I know, even operate in Italy, so lots of competition even without them. I think Vodafone just need to become super efficient without reducing customer service. If my experience of renewing last week at a store in the North of England is anything to go by, they have a lot to improve upon.
As a newbie to all this and shareholder with a tiny amount of VOD shares can any point me to a simple explanation or explain to me what this buyback will look like to me or how this works? what will actually happen?
Methinks the buyback is to sweeten up a forthcoming drop in the dividend , Sensible to me.
"I hope the growth materialises."
We all said that during the days of "Project Spring", remember! The days of delivering 4G then followed by 5G. And what happened, all the money from the sale of Verizone Wireless wasted and a huge mountain of dept appeared. No growth anywhere except in the dept mountain.
Best Regards ValueS
Selling physical assets to free up cash, used to reduce debt and size of equity.
Reducing dividend to reflect future free cash flow.
Focusing in value add growth markets rather than building a physical asset empire seems reasonable to me.
I hope the growth materialises.
The buybacks an utter waste of time, I guarantee you share price will be sub 60 soon, dividend is being cut in half and if they wanted to return money to long suffering shareholders do it through a special, the buybacks will vaporise half this money and the other half will disappear into the debt mountain. Another dogshxt ftse 100 company on the worst index in the world.
A total of €4 b worth of buybacks intended. €2 b after the completion of sale of Vodafone Spain and a further €2 b after Vodafone Italy, according to today's RNS. Since there are 27,078,739,427 outstanding VOD shares according to the latest voting rights RNS, then this represents a total of 14.7717 euro cents per share worth of capital return. At current fx this equals to 12.623 GBX per share. At current SP of 68.8 GBX this represents only 18.347% of mcap. And the higher the SP the lower this figure gets! Am I missing something?
Best Regards ValueS
Share buyback is a mid term benefit, if earnings growth materialises.... but they need to do it,rather than just hand the cash back to shareholders, as the cash flow now will be lower once Spain and Italy gone , and the BB will assist EPS by H2 FY25
Italy sale is cash flow dilutive
A special dividend would have been nice….hope share buyback is beneficial…it has n
been singularly unhelpful with ABDN..except for Stephen Bird’s bonus
" As at 31 March 2023, Vodafone Italy had gross assets of 12.4 billion Euro . For the 12-month period ended 31 March 2023, Vodafone Italy generated a loss before tax of Euro (49) million."
Amazing really ....that with 12.4 billion Euro of assets ( plus some debt ) it can only generate an operational loss
Great news today.
Good to hear VOD will be investing in B2B IOT networks.
Plenty of opportunities for future growth, with a rebased DIVI to keep the investor interested.
One for the longer term, not for trading
1. five business divisions: Germany; European Markets; Africa; Vodafone Business; and Vodafone Investments.
good idea, ....to really drill down and focus on performance and also be in a position to sell any one division
2. Future still very competitive and they are going to have to work hard to get improved earnings out of what they have left .... lower dividend inevitable, and suggests they indeed dont expect any great change to earnings in the near future
3. The German CEO leaving suggests they are still struggling there and it needs immediate attention
4. BB Better option than any special dividend
5. Market reacting well, because it feels the CEO has executed what they had advised her to do
Is Jsteh a new alias for our friend jax?
Not been in these for a longtime starting to see some action taken and finally announced dividend rebase bought big chunk this morning good luck all.
Agreed Stupmy. I having been watching this for ages and have finally bought a first tranche today. I was just awaiting an announcement on the divi, and want to spread my divi share basket. Relaxed if it drops a bit more.
Yes manipulation at it's finest.
I like the fact that the dividend question has been resolved. That takes a negative out of the equation for the future. Like bobrad I think it'll drop back. My view is you'll be able to add at 66 or lower (probably sooner rather than later). Whether a drop to my previous targets is still likely I dont'know
I find it hard to believe the share price wasn't pushed down this week knowing this news was coming.
At todays prices 4B buyback equates to 20% of todays shares being taken out of the market.
Not seeing the massive rally myself (happy to be proved wrong). The one thing you could always say about this share when the share price is tanking, oh well at least the dividend is decent. Rebasing it as they have, it's not the worst return on a 66p share, but a poor one on a £1.50 share (which clearly it has no intention of ever being again).
Why not top up today,,,,when it drops
Cutting the divi makes complete sense to me - it eliminates the divi not affordable stick to beat VOD with going forward - hopefully the market will agree - lets see
gla dyor etc
I don't think you missed the boat loading up.
Every time MDV announces anything, everyone gets excited here about a rally. Then analysts weigh in and finds weakness. SP drops.
*wasn't
Oh well no more emotion