Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
Sorry bit got chopped off the bottom
Broker Numis thinks BT may find it tricky to improve UK profitability in the near term because of "Britain's cost of living crisis, intense retail market competition, and intense competition for labour to grow rival FTTP networks".
Despite the underperformance of a few of their assets and the rising costs of capital expenditure, both businesses continue to be very cash generative. Broker Numis expects Vodafone’s free-cash-flow yield to increase from 6.7 per cent to 8.7 per cent in 2023, while it expects BT’s to reach 5.3 per cent by 2023.
The rotation towards value stocks at the beginning of the year has benefited both. Vodafone and BT are up 17 per cent and 11 per cent, respectively, since the turn of the year. This could create a virtuous circle. Higher valuations gives them an option to turn to equity markets in the search for cash alongside disposals. Activist approaches are stressful for board members, but the market will hope this is the beginning of the telecoms turnaround it has been waiting for since 2018.
BT and Vodafone expected to speed up consolidation under activist pressure
The telecoms giants have been trying to consolidate their businesses as they look for extra cash to fund big capital expenditure
February 9, 2022
By Arthur Sants
Vodafone (VOD) and BT (BT.A) face similar problems. They are both investing heavily amidst a period of inflation while trying to manage huge debt piles. They now both have aggressive external investors building up stakes in their businesses as well. At the end of last year, French telecoms billionaire Patrick Drahi increased his holding in BT to 18 per cent and at the end of January Scandinavian activist investor Cevian took a stake in Vodafone.
Neither investors have publicly stated their intentions for the telecoms giants, but their presence has generated speculation they will speed up their corporate restructuring. Given the cash needed to upgrade 5G and broadband services, both BT and Vodafone have been looking for ways to offload assets either through disposals or joint ventures.
VOD:LSE
Vodafone Group PLC
1mth
Today change
1.52%Price (GBP)
139.31
In defence of Vodafone CEO Nick Read, it is difficult for him to move any faster. He has completed 19 deals since taking over in 2018 – including the IPO of the Vantage Towers (Ger:VTWR) business. The latest decision for the board is reportedly whether to sell off the company's Italian division to French company Iliad, which – according to the Financial Times – put in an offer this week.
Investors are hopeful Vodafone can further decrease exposure to stagnant international markets, so the greater activist pressure could see a deal done. In the third quarter of last year, organic revenue continued to decline in both Italy and Spain, despite favourable comparators against a disappointing last year.
BT is a different proposition as it doesn’t have nearly as big a European presence. However, investors are still keen for it to focus on its core UK broadband and 5G market. They will therefore have been pleased to see BT enter into a joint venture with Discovery for its barely profitable BT Sport product earlier this month.
The next hope is BT might find a buyer for its Global Service business, which saw adjusted cash profit (Ebitda) fall 27 per cent in the first nine months of last year. Global contributed just 5.6 per cent of BT’s overall cash profits for the period. Given that BT has increased capital expenditure by 24 per cent to £3.75bn in the same period – much faster than its 2 per cent improvement in adjusted cash profit – an influx of cash now from a disposal would be very handy.
Broker Numis thinks BT may find it tricky to improve UK profitability in the near term because of "Britain's cost of living crisis, intense retail market competition, and intense competition for labour to grow rival FTTP networks".
Despite the underperformance of a few of their assets and the rising costs of capital expenditure, both businesses co
https://seekingalpha.com/news/3796732-vodafone-sees-bid-for-italy-unit-from-niels-iliad-bloomberg
When you say experience, when have we had the situation we have now before? I implore you to jump ship and miss out on the very soon to be announced M&A activity that is clearly imminent.
As for Dan, thank you for your kind words, just have a look at Vod or a VOD MVNO when you renew. Even Mikey eats his own dog food, giving your cash to the parent network only helps o2.
Dan,
Mole man is just a de-ramper troll, he has already said Vodafone is over valued above 100 pennies and face an existential threat via the Satellite phones, so he wouldn't even if they were 50p. Complete waste of space yet you think he is "ok". Mikey has integrity mole is just a (paid?) de-ramping muck spreader.
Perhaps if you bothered to read the reports and results your ignorance would lifted. Your comments apply to the "Jo do" retail subscriber, probably someone like you who just wants "Sim only" and would go to Tesco mobile to save 50p/week. This has jot-all to do with their growth which comes from Vodafone Group- "The internet of things" ie everything gradually getting connected. When your BMW crashes and you are incapacitated the air bags deploy, the "built-in sim" automatically informs the emergency services that you need help and your exact location in practically EVERY country in the world automatically. Do you think the MVNOs can do things like that? the ones that are 50p cheaper? Growth is coming from connectivity of millions of devices that need connection but not a human person with a physical sim
Looks like an in-line job at first glance
https://investors.vodafone.com/sites/vodafone-ir/files/result_document/q3-fy22/Vodafone-FY22-Q3-Trading-Update.pdf
https://investors.vodafone.com/sites/vodafone-ir/files/result_document/q3-fy22/Vodafone-FY22-Q3-Presentation.pdf
I have bought 10 tranches of Vodafone mostly in batches of 10 to 12k in terms of number of shares. The lowest price is 1.10 with most in the 1.12-1.20 range with a bad one at 1,34.
13-Mar-2020 Vodafone 10000 1 1.101796
20-Mar-2020 Vodafone 10000 2 1.175526
24-Mar-2020 Vodafone 7130 3 1.127636
25-Mar-2020 Vodafone 10009 4 1.152154
27-Mar-2020 Vodafone 10408 5 1.146194
27-Mar-2020 Vodafone 12404 6 1.202329
7-Apr-2020 Vodafone 10021 7 1.190422
18-Nov-2020 Vodafone 10100 8 1.2296
25-Nov-2020 Vodafone 10346 9 1.2492
5-Feb-2021 Vodafone 9989 10 1.342912
As of COP yesterday when you include the 4 dividends received ( inc tomorrow's) this represents a part paper profit of 18%. I say part because the dividends received have been real. The only tranche in the red is the last one, I would say for all the frustrations and snakes with long ladders it has been pretty good and upwards from here. To suggest Vod is a buy only below a £1 is disingenuous and frankly ridiculous, good look with your hard earned 9%
Interesting article from the gridian
https://www.theguardian.com/business/nils-pratley-on-finance/2022/jan/31/an-activist-investor-could-be-just-what-vodafone-needs
It is all a bit weird how we all think ( perhaps except N Read) that an activist investor that people know little about is coming to rescue Vodafone from a fete they have had 30 years to work on. It perhaps really show how utterly useless the board of mates have been and continue to be. Seems also a bit weird that this small % has so much influence, if that is the case why has it not been done before by others?
As is explained in the results and on the Vod Investors website the
The foreign exchange rate at which future dividends declared in euros will be converted into pounds sterling and US dollars will be calculated based on the average exchange rate over the five business days during the week prior to the payment of the dividend. This will be determined on 28th January