Wednesday newspaper share tips: Vodafone worth a long-term look

(ShareCast News) - Vodafone is worth a long-term buy, according to newspaper pundits at The Times and The Telegraph.The FTSE 100 telco's service revenues bounced back in the second quarter as many of Europe's telecoms markets made an encouraging return to growth on the back of surging demand for mobile data.Revenue for the first half fell 2.3% to £20.3bn but earnings before interest, tax, depreciation and amortisation (EBITDA) rose 1.9% to £5.8bn thanks to better top-line trends and good cost control in Europe and Africa, Middle East and Asia Pacific.The Telegraph's Questor highlighted that investors would be happy its core business is now growing after the carrier sold its stake in the highly profitable Verizon Wireless last year. It left the company in a comfortable position while its rivals had falling revenue and profits, as well as high debt levels."The company was able to selectively add assets across Europe in a buyer's market, while also spending billions on its own infrastructure."Questor also said that the company has invested in infrastructure and can now provide 4G service to 82pc of the UK market, with total customers using the service up 76% from May to 5.3m in September.With its £19bn capital spending plan finishing in March, cash generation should improve in the next financial year. The growth of 4G customers will also continue towards the end of this financial year, and dividends are also attractive. On top of that, Questor noted its Europe footprint means it is still a takeover target for a US group.In The Times, Tempus focussed on the possibility of a partial float of Vodafone's Indian business. It calculated the telco could make £3bn from a 25% float in what could be the country's largest IPO."The funds would add firepower to Vodafone when its leading competitors are merging: BT is buying EE, the wireless carrier, to create the biggest converged operator, while O2, owned by Telefónica, and CK Hutchison's Three are aiming to become the biggest mobile operator next year."Tempus said the company has demonstrated it can turn investments into solid improvements in service revenue, and there is a prospect that big investors who held shares for income "may fancy it for growth, which could prompt a re-rating".