Vodafone Group (VOD)

Sector:

Telecom Operators

Index:

FTSE 100

72.02p
   
  • Change Today:
    -0.34p
  • 52 Week High: 78.86
  • 52 Week Low: 62.97
  • Currency: UK Pounds
  • Shares Issued: 26,082m
  • Volume: 67,149,053
  • Market Cap: £18,784m
  • RiskGrade: 130

Vodafone unveils €4bn capital return after selling Italian unit

By Benjamin Chiou

Date: Friday 15 Mar 2024

LONDON (ShareCast) - (Sharecast News) - Vodafone and Swisscom have confirmed that the Swiss telecom group will take over Vodafone Italy for €8bn, enabling the UK company to return €4bn to shareholders.
The deal, which follows a statement released two weeks ago that confirmed media speculation regarding a potential sale, is the "final step of the portfolio right-sizing" announced last May, Vodafone said on Friday.

Vodafone has now raised €12bn from the sale of its Spanish and Italian divisions combined - following the disposal of its Spanish operations to Zegona for €5bn announced in October - paving the way for a €4bn capital return via share buybacks.

However, the company also announced that it would be "rebasing" its dividend to 4.5 cents per share from 2025 onwards, down from an estimated 9.0 cents in 2024, but "with an ambition to grow it over time".

"The new dividend has been set at a sustainable level, which ensures appropriate cash flow cover and sufficient flexibility to invest in the business for growth," the company said.

Vodafone Italy, which accounts for 11% of Vodafone's group services revenues, generated €2.32m in total revenue in the company's first fiscal half ended 30 September. However, the disposal will allow the company to "reshape" its European footprint focused on growing markets, it said.

"Going forward, our businesses will be operating in growing telco markets - where we hold strong positions - enabling us to deliver predictable, stronger growth in Europe. This will be coupled with our acceleration in B2B, as we continue to take share in an expanding digital services market," said Vodafone chief executive Margherita Della Valle.

Meanwhile, Swisscom intends to merge Vodafone's Italian unit with its own Italian division, Fastweb, giving the company increased scale, more efficient cost structure and annual run-rate synergies of €600m.

"Vodafone Italia and Fastweb will bring together complementary high-quality mobile and fixed infrastructures, competencies, and capabilities to create a leading converged challenger in a market with material growth opportunities," Swisscom said in a statement. "The transaction is a key step for Swisscom to achieve its strategic objective of profitable growth in Italy. Swisscom intends to increase the dividend and expects to retain its excellent corporate credit rating."

The deal is subject to regulatory approval and customary requirements, but is not expected to close until the first quarter of 2025.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Vodafone Market Data

Currency UK Pounds
Share Price 72.02p
Change Today -0.34p
% Change -0.47 %
52 Week High 78.86
52 Week Low 62.97
Volume 67,149,053
Shares Issued 26,082m
Market Cap £18,784m
RiskGrade 130

Vodafone Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
88.32% above the market average88.32% above the market average88.32% above the market average88.32% above the market average88.32% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Price Trend
18.15% below the market average18.15% below the market average18.15% below the market average18.15% below the market average18.15% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Income
55.82% above the market average55.82% above the market average55.82% above the market average55.82% above the market average55.82% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Growth
82% below the market average82% below the market average82% below the market average82% below the market average82% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average

What The Brokers Say

Strong Buy 4
Buy 3
Neutral 7
Sell 2
Strong Sell 1
Total 17
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Vodafone Dividends

  Latest Previous
  Final Interim
Ex-Div 06-Jun-24 23-Nov-23
Paid 02-Aug-24 02-Feb-24
Amount 4.50¢ 4.50¢

Trades for 31-Oct-2024

Time Volume / Share Price
17:33 182,965 @ 71.88p
17:33 2,560,823 @ 71.89p
17:33 1,765,882 @ 71.88p
17:33 1,265,646 @ 71.88p
16:35 28,520 @ 72.02p

Vodafone Key Personnel

CEO Margherita D. Valle

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