RE: Baffled!!1 Nov 2021 11:32
I always mind boggles why many people show that much emphasis on fcf? And I am happy to be corrected that so called fcf actually just money from all operations before paying all the bills (e.g. ITDA). There won't be much left after all these bills were paid. In the last financial years, only 536m net profit after paying the ITDA. To make the matter worse, the minority shareholders took away 424m. The shareholders only left with 112m! Then VOD paid £2.4b dividend as well. That was why cash in hand and at bank was €13.284b in 2020 has decreased to only €5.821b in 2021, a drop of €7.46b. if it repeats again this year then cash in hand and at bank will be negative in the 2022's final results.
RichTheNewbie said that although VOD has a huge debts, it got something to show for it just like buying a house.
Well, VOD came to the market in 1988, that's 33 years ago. Average house price in 1988 was £159,977. Average house price in July this year was £265,000.
VOD has accumulated €121b losses after 33 years of trading but it got net assets of €57.8b.
Can you see the difference between buying a house and VOD trading after 33 years? Which one is more profitable??........lol
Many may say that things are different now. VOD has written off India and now has gone into 5G and ventured into AFRICA. Yes, seems very exciting ahead same as before they gotten into Spain and India but then they have become lemons didn't they? Before VOD can make money from these two areas, they must spend money on them first, a lot of money! How do we know that they won't become Spain and India again? After all it's all about competitions, particularly there will be an army of 5G competitors just like 3G and 4G!! Then Africa is even poorer than India and more corrupt. It's not all plain sailing I must say.
Since we need more balanced views not just one sided blind faith on here. Therefore I am only stating the fact and the naked truth of VOD's past and present. I didn't meant to upset all the faithful LTHs. Please forgive my negativity. Good luck and God bless you all.
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