Member Info for Android101

Thanks Fleccy. I hope they do more of this kind of thing. They seemed to have good answers to all the questions

The interim dividend is 'declared' at the H1 results.

The VOD language suggests they maintain it at 9cents per annum.

This article is at least consistently communicating nothing changes the dividend.

In my mind, they hold it whilst they make the published changes to strategy and deliver the outlook, at a minimum. People might not like it, but you dont have to sell 2m handsets to generate €1Bn cash over a 3 year contract. You can do that by a one off large deal from a broad asset base if it doesnt interrupt your run rate.

If you fold performance into a rebased merged company, the incremental 3 year cash flows starts coming from handsets and service etc and you dont need asset sales, unless they are non core, as is the case with Liberty Global sales potentially upcoming

'Vodafone boss Margherita Della Valle said the company's deal to merge its UK operations with that of CK Hutchison's did not affect its current dividend policy.'

Thats good news. I think that implies an interim dividend (and final) to come in this FY as reward whilst the scale merger follows. Obviously we need to wait for H1 reporting for news on an interim dividend and the BoD is definitely on MDVs case. Its becomes clearer why she got the job. An external CEO would still be phaffing around with incentives, and soft targets.

https://www.lse.co.uk/news/VOD/vodafone-boss-hutchison-deal-doesnt-change-dividend-policy-36ypte493pxuqk0.html

It amazes me people think merging 2 national networks is a quick project. The approval from the CMA requires a certain amount of box ticking that VOD and 3 have tested in previous regulatory campaigns and received judgements, so if they are saying its different this time and they are confident, then its probably 99%. The consultation has been out for some time and UK PLC has no patience for a long drawn out CMA process on any axis. I expect we get a decision alot sooner than the headline and reported performance might be carved out sooner too

https://www.lse.co.uk/news/VOD/vodafone-ceo-secures-early-win-but-long-road-ahead-on-the-deal-front-uox8kzafxzlvhd9.html

Great stuff. A really powerful and well written RNS. Watershed for the rest of europe too. Fantastic. Well done Vodafone and UK PLC

BATs and IMB dividend same story before it recovered, although now falling back. How can you argue the cost of equity should be lower than the cost of debt. Also VOD debt is c3% service cost.

Its a good sign to see Toff posting as he turns up at the bottom imho

Thank you Jax

'Comfortable Liquidity: Vodafone reported cash and cash equivalents of EUR6.8 billion (excluding cash collateral) and highly liquid short-term investments of EUR4.3 billion at FYE23 and benefits from a further EUR7.7 billion of undrawn bank lines. The combination is sufficient to cover debt maturities of EUR10.2 billion over the next three years. Vodafone has good access to debt markets and strong relationships with banks.'

Eyes down for EBITDA/ FCF H1 but I think MDV is good at the short term projections. Hopefully E& is good at the long term. We get paid the div 1st week August I think.

Was listening to Dr Mohamed A. El-Erian, on Bloomberg today. He is a Bloomberg columnist and 42nd President of Cambridge University. Try using 3% inflation in projections rather than the FED/ECB/BoE projections of 2%. Makes my future outlook and outcomes look so much better. Plus dividends.

Well Robleo, we got the dividend dropping into our accounts in August. We will hear if there is an interim div on the H1 performance too. E& have invested on that understanding too. MDV has a few things coming to fruition on her revised baseline, so maybe we see £1 again this year. Yes, not a bad week. The shorts cautious on the 3VOD news..

The telco sector is down 3.6% today so VOD ex div not so bad relative to that

'I am sure those who belive in Santa will still ramp this up as value.'

Santa the forex dealer. £ strengthening and VOD reports in €. That must be the div+forex today. I mean what else can it be when Rudolph the red nosed RNS just about to land?

Mesh, yes think so.

Hutch will be busy influencing all their other interests in UK PLC too, and both VOD/3 in EU with BEREC.

Last I looked, OFCOM is still a BEREC/ EU institution subscribing to WTO trade rules etc, so the merger going ahead is likely the end of the beginning ie paying back stakeholders against an agreed regulatory glidepath underpinned by an agreed common definition of cost that they all operators navigate toward.

I expect thats the news Liberty wanted before selling their 'non core' assets and converting their derivative to stock with the cash. Niel may also increase his stake as the starting gun has been fired. E& may have to pay a bit more for a 2nd BoD exec.

Shorts might want to close as the risk profile has changed.

Rating agencies may say something later that improves outlook.

Very positive news. 1st domino in the EU consolidation programme. Well done UK PLC. Well done VOD!!

I decided to hedge and short while this is being used as a slush fund for Bailey and his audience.

66p for me please roofer. Think it will be higher during the week for the div

'Divs that don't come from genuinely excess capital don't work.'

They just reduced debt to €33Bn. €46Bn at H1. Crikey, the SP is completely disconnected from the ability to generate cash, pay down debt and invest in business. Shareholders own the company and the div is the required return. Debt service cost has increased to 3%.

Danny, hope you are right. I have cash clearing just for that or a nice safe bond etf ;-)

Roofer, low cost means low profit and an amazon warning signal imo and maybe why they are distancing themselves. They might try only using wifi, but why bother, a microphone can do that. Mobile operators have a walled garden which already has a regulatory 'burden'...hotting up or just an article to support changing a position?

Yep, easy to think Kodak but the reality is nothing digital works without fixed and wireless networks. A few timed disposals from the 'rest of Europe' bucket will chip away at debt, maintain the div and ensure the capital reinvestment cycle. The real win will be when country gdps pick up and the 'telco utility cash flows' rise with tide of increased traffic

'but competition is intense and fighting to keep low-cost customers isnt going to be their focus'

Not fight over low/ no profit customers, but aggregating all in a wholesale MVNO model could be attractive for VOD. I imagine Amazon would want to offer the range of devices and appeal to high and low end customers in which case pricing would need to be commensurate. The rest of the market that has invested in network and spectrum has to handle the end to end obligation and wont handle their calls for free..