RE: Too much in debt for a takeover. Getting to too much in debt to survive20 Oct 2021 10:15
Fleccy, my understanding is 27bn in your example. No dilution.
I would like to understand it too so in principal, I think Vod will have earned the price they sold forward the mcb, say £2.2 per share less the cost of the derivatives contracts and the current SP say £1.1. The difference will be cash banked by vod with each buyback?
RE: Ericcson beats expectations on 5g demand19 Oct 2021 12:36
Chris/Dev, Div sustainability. The bond maturity profile doesn't look very stretching over the next few years. If can maintain market share (grow it africa, growth offset inflation Europe) cashflows are a matter of cost control
There is no liquidity issue imo. With good commercial and cash control, Vod can pay a sustainable dividend. Vod have a 'strong liquidity profile with 10 year average debt tenure' Net cash position = €9.8 billion Unused facilities = €7.4 billion Maintaining target of 2.5-3.0x leverage No short-term refinancing requirements Mandatory convertible bond maturing in March 2022 https://investors.vodafone.com/debt-investors/financing-strategy
Anyone wanting to understand the industry better, this is a good book. Some great illustrations if you like pictures. Wireless Broadband: Conflict and Convergence (IEEE Series on Digital & Mobile Communication)
Thanks Stockready 'could take longer than people think' Yes I think you are right. Weekly candle not perfect but suggests to me a change in momentum. What we need is a good RNS to cover the gap to reporting and div day. The India investor would be good one if they were just waiting for government clearance.. GLA
Interesting, Africa is the only continent where the % rural population will grow relative to total over the next 30 years. All other continents urban populations will grow faster than rural. So wireless cell and simple economic access products like m-pesa makes sense. Safaricom, Vodacom ets well placed to take big market share.
So Europe I suppose is about market share and the level of debt to net income and GDP imo. Vod ebitda/ fcf seems to track GDP, probably because its regulated in these markets?
30 years is too long a time frame for me but good Q2 results and reconfirming FY guidance is good enough with 7% div for now