The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
'Surely getting rid of two big loss making countrries can only help the dividend.'
Probably.
MDV will need to firm up the contribution each of the continuing businesses is going to make if she sells underperforming assets as a strategy. In particular, dividend sustainability, E& leadership etc
£1 this year if MDV can get the BoD to make big decisions.
Selling Italy vs merging Italy will tell.
We know a couple of disposals can clear debt to zero but free cashflow wont sustain an 11% dividend.
Think I want E& rns increasing their stake and the div maintained
'VOD cannot achieve a return in excess of there cost of capital'
VOD can achieve a return in excess of its cost of capital if it pursues mergers eg UK and exits underperforming markets eg spain.
Market is forward looking so should be looking to rerate this year imo
Not sure why UNITE is complaining about the dividend. Their pension scheme report it is down nearly 18% because bond values have dropped and bond yields are massively up. I would think a dividend is what the pension scheme needs to fund members pensions?
2024 MDV FY performance and outlook a tipping
VOD prefers european mergers to european disposals if they get a return above their cost of capital and merger/ restructuring will let them do that and keep their jobs.
Rest of the World a mixed portfolio. Idea looking more positive this morning.
E& still the largest shareholder and interested in Africa, emerging markets, european forex exposure and dividends..
I can see a spikey SP that continues to pay a dividend.
You have done well if you took the last div, sold immediately ex div and bought back at 65p..LoL
I am following E& and expecting the dividend to coninue to return to investors, maybe even increase a little bit.
MDV says,
'Consistent with its previous statements, Vodafone is supportive of in-market consolidation in countries where it is not achieving appropriate returns on invested capital'
Italy and Spain tick those boxes.
Like the rest of the market, I am expecting national economies and therefore telco usage and connectivity requirements to pick up and uk, germany, NL et al to drive service revenue growth and with the cost control and initiatives well underway, FCF to continue to underpin the div policy.
The danger is too much cash and rubbish investment. Sweat the portfolio for the next couple of years imo
With €4Bn Spain cash and another €6Bn from Italy plus Cash in hand. FY div looks safe. Near and medium term debt covered and some will roll over . If MDV has the underlying cash flow nailed, this must be the bottom, surely?
'the proposal is ready'
The strategy appraisal process is 24/7.
The fact it had to be shorted back down today is the writing on the wall imo. I am not expert but feels like a large number of shorts want to close before a significant deal confirming the integration watershed in EU/ UK. PIs wont feed them in the timeframe left so spikey spikey, come back mikey?
A happy Xmas after all?
'Politicians have simply ignored the trend of corporate domiciling in tax havens.'
That is an exclusive club where wealth can be concentrated and allows the return on global investment returns to be greater than the rate of global economc growth. As your average uk citizen cant participate in that concentration, Hunt should raise the personal tax threshold to £60k to offset the offshoring of uk revenues
I bet Donald Trump uses a Delaware limited partnership
'Hunt is doing the right thing'
Well he is doing something. Maybe its maths but a generation is paying for the arbitrage of higher inflation than interest rates. VOD net assets vs market value are a good example who is paying for it.
Personally I think £60k tax threshold offsets cost of living..
Funny how uk brexited the eu bureaucracy. EU has approved the merger and the UK is still stuck in it own bureaucracy for another year. Bailey still on the fence with interest rates Hunt soaking tax out of citizens with the personal tax allowance fixed whilst inflation and the cost of living is a raging wild fire
Fleccy
'UK Three merger will get approved toward the end of next year'
I think that timeline is the CMA who will shortly give guidance. I think end of 2024 for the remedies eg spectrum rebalancing etc.
As soon as the security decision is made in parliament, sometime next week or next month, VOD 3 will just start. They are ready to rock and roll now.
Not expert but €63.4bn is c €2.35 per share and what the statutory authorities say is the net realisable value.
The enterprise value higher?
I imagine E& would pay €20bn for the brand including the partner markets model in Africa.
Anyone know the timetable?
As far as I can tell, parliament approving or identifying the assurances pretty much seals the deal.
Hutch own major ports like Felixstowe, Harwich, Thamesport. Not sure why the existing uk telco operation (20 years) is a risk merged with VOD as chinese equipment concerns already addressed.
'they paid €7.2bn for ONO'
9 years depreciation [more than €2Bn] and have been servicing dividends.
Service Revenue declining near 6% pa, so time to give it to someone else who runs a different operating model and avoid the structural stagnation.
Dont think they want to sell Italy but may need valuation for year end review of the balance sheet carrying c€60Bn net assets.
City took this up to 80 recently off a long period around 70 - 73. Presumably they are hoping for 60p, rotation and then back to 70-73 on FY performance.
I am happy to take a dividend and wait for the policy makers to wake up