Member Info for slarti_bartfast

Thanks Henry. I agree the theory.

This year, Vod are guiding higher ebitda and higher free cashflow year on year and the ceo has nailed his colours to the mast maintaining the dividend.

Interest rates might rise this quarter if the BoE moves. Then again, the ECB dont seem to want to move until Q2 2022, and only then a change in debt semantics. Interest rate rises to control transitory inflation?

'Henry, I am not expert but want to understand. 'The main issue is the threat of increased interest rates'

The bonds in issue have a fixed coupon rate so the profit and loss account is not impacted and the free cashflow is free for div payments?

An increase in interest rates would impact the market value of a Vod bond. Bond holders might hedge that risk using derivatives that impact the Vod SP...?

Higher interest rates would only materially impact interest cover/ div cover when new debt is raised, not existing debt. Is that right? If so, the exercise of bond holder options might impact the SP in the short term.

Dividends are unaffected.

I think Vod will confirm H1 Service revenue growth in both Europe & Africa as well as growth in both Consumer & Business.
I also think Vod will confirm on-track for FY22 guidance: €15.0-15.4bn EBITDA & >€5.2bn Adjusted FCF
Icing on the cake if they reduce net debt YoY and/ or increased the div for inflation

'Financial Year 20/21 Free cash flow (pre spectrum, restructuring and integration costs) €5,019 m'

Q2 should be a continuation of the good performance reported in Q1?
Telecoms fundamental component of gdp and planned economies. No-one or no business can do without connectivity services.
https://investors.vodafone.com/sites/vodafone-ir/files/2021-07/vodafone-q1-fy22-presentation.pdf

Free cash flow (pre spectrum, restructuring and integration costs)1 5,019 
Licence and spectrum payments (1,221)
Restructuring and integration payments (421)
Integration capital expenditure (267)
Free cash flow 3,110 
Acquisitions and disposals 447 
Equity dividends paid (2,427)
Share buybacks (53)
Foreign exchange (loss)/gain (219)
Other movements on net debt 646 
Net debt decrease/(increase) 1,504 
Opening net debt (42,047)
Closing net debt (40,543)

Financial Year 20/21 Free cash flow (pre spectrum, restructuring and integration costs) €5,019 m

€Millions
Adjusted EBITDA 14,386 
Capital additions (7,854)
Working capital 564 
Disposal pp&e 42 
Interest received and paid (1,553)
Taxation (1,020)
Dividends received from associates and investments 628 
Dividends paid to non-controlling shareholders in subsidiaries (391)
Other 217 
Free cash flow (pre spectrum, restructuring and integration costs) 5,019 

'I've been away'
Best just switch off until after results and be in for the div imo. Could try something else with recovery prospects, mcro?

I will look at my hold again after the interim div. H1 results confirmation will help.
Sepparately, I got a letter today to claim my share of funds held in trust with Daisy after they left AIM. Fortunately I still have the share certficate from 2009...lth lol

If the future of world economies really is digital, then Vod will play a big part in core connectivity.
Digital services investor briefing on 29 September 2021.
https://investors.vodafone.com/sites/vodafone-ir/files/vodafone/investor-events/digital-services/vodafone-digital-services-investor-briefing-presentation-final.pdf

my thoughts are the Indian Gov cleared the way for an investor. Vod not putting more capex in. Difficult for Nick to change his mind given how he started with the div cut. Still, his positioning brought about the indian gov remedy, so..

..and thanks for all the fish'
Couldnt resist and sold. All out for now..
GLA

Android £3.02
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Plas £3.50

Might find additional equity investor(s) now that the Gov has ring fenced the risk. Nick seeking to bridge the' digital divide' in yesterdays RNS and is a man of considerable influence in that role also.

Great initiative. Nick raising his global leadership profile

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Vod paid about £1Bn for C&W and from memory and was able to avoid [£0.2Bn] pa of BT costs alone. Good deal for Vod to say the least imo. Included global submarine networks and terrestrial networks for the global internet backbone and Vod large enterprise customers. Technology and kit has moved on so I imagine hard to upgrade all of it and control costs. aimo dyor..

'spain'
thats good news if they are allowed to cut the costs.?

'Why is SP going down even though they are in buyback'

more sellers than buyers?

'Has Vod managed to turn these investments around ?'
Group strategy is currently Europe and Africa
https://investors.vodafone.com/reports-information/results-reports-presentations?tab=fy20

looks like inventory shortage worries for a few weeks due to US storms and revised opec demand up for 2022