VOD.L - Vodafone Group Plc
| Previous close | 154.20 |
| Open | 154.92 |
| Bid | 156.46 x 0 |
| Ask | 156.48 x 0 |
| Day's range | 154.78 - 156.98 |
| 52-week range | 1.69 - 169.46 |
| Volume | 56,679,563 |
| Avg. volume | 75,465,392 |
| Market cap | 42.308B |
| Beta (5Y monthly) | N/A |
| PE ratio (TTM) | N/A |
| EPS (TTM) | N/A |
| Earnings date | 12 Nov 2019 |
| Forward dividend & yield | N/A (N/A) |
| Ex-dividend date | N/A |
| 1y target est | 2.01 |
- Reuters - UK Focus
EXPLAINER-As Britain decides, Europe grapples with Huawei conundrum
Britain's impending decision on whether to allow Huawei to supply equipment for 5G mobile networks comes at a delicate time, with debate raging in European capitals over the security implications of reliance on Chinese technology. In Germany, Chancellor Angela Merkel's preference for applying the same rules to all equipment vendors faces growing resistance from lawmakers in her own party, who back U.S. calls to ban Huawei outright. Europe's leading telecoms operators, all Huawei customers, are lobbying against an outright ban.
- Bloomberg
A $21 Billion Telco War Comes Down to $2
(Bloomberg Opinion) -- India’s great telecom melee was bad enough as a brawl between service providers and the state, with operators complaining about the government’s outlandish claims on their past revenue. Now, consumers have jumped into the fray. A confusing three-cornered fight could lead to ugly outcomes: The country’s broken financial system would take a fresh hit; new 5G networks could be delayed; and the government’s annual revenue from the sector might get squeezed.This week, New Delhi wants nearly 1.5 trillion rupees ($21 billion) in back license fees and spectrum usage charges, including penalties, interest and interest on unpaid interest. Before they lost the case in India’s Supreme Court, the telcos maintained the government’s interpretation of what it was owed under the 1999 revenue-sharing agreement to be too broad and unfair because it included even their non-telecom revenue, such as interest and dividend income. It's a Pyrrhic victory for the government because not all the money it wants is coming. Of the 15 firms facing these long-contested demands, most have shut down, sold out or ended up insolvent. All eyes are now on Vodafone Idea Ltd., one of the three private-sector mobile services companies still standing. It has to pay 530 billion rupees by Jan. 23, by government estimates. Even taking Vodafone Idea’s own calculation of the liability at 442 billion rupees, the loss-making carrier’s net debt soars to a life-threatening 1.6 trillion rupees. It may not be able to meet all its obligations.The threat of a bankruptcy was real when I wrote about Vodafone Idea’s grim prospects in November. With the two large shareholders — Britain’s Vodafone Group Plc and Indian billionaire Kumar Mangalam Birla — reluctant to throw more good money after bad, the equity value of the business is hurtling toward zero.Telcos have requested the country’s top court to extend the payment terms. Even if Vodafone Idea stays afloat thanks to a last-minute compromise, customers have read the writing on the wall. The mobile carrier lost 36 million subscribers in November. And that was before all three players raised prices in December. As the churn gets busier, the hypercompetitive Indian market will effectively turn into a duopoly. Bharti Airtel Ltd. and Reliance Jio Infocomm Ltd. will see their market shares settle at around 35% and 45%, respectively, by March 2021, according to Jefferies Financial Group Inc.Where will this leave Vodafone, or the $1.7 billion that the government earns from the current No. 2 player as annual spectrum revenue? Of the many creditors that have exposure to the telco, Yes Bank Ltd. is particularly vulnerable. Saddled with bad loans, the Indian bank is struggling to raise funds as its capital buffers wear dangerously thin. If potential white knights get cold feet because of the lender’s outsize telecom exposure (as much as 29% of shareholders’ funds, including 18% for Vodafone Idea), then the country’s financial system may be looking at a big confidence shock. Worryingly, future profitability of the telecom industry also remains unclear. Blame it on the cost-conscious Indian consumer. With telcos raising prices, using one SIM card for calls and another for data isn’t cost effective any more. Demand will consolidate, and some of it may vanish altogether. Bharti Airtel recently introduced a 179 rupee plan, valid for 28 days, which offers 2 gigabytes of data, unlimited calls, and comes packaged with 200,000 rupees of life insurance. This is a way to lessen the sticker-price shock for entry-level subscribers, especially in semi-urban and rural areas, who are being nudged to trade up from the current 149 rupee basic plan. Expect more such bundled offerings as both Bharti and Jio try to raise their average revenue per user to around 300 rupees, where the economics starts to make more sense.That’s still a ways off, though. Jio, whose aggressive entry three years ago with free voice calls and cheap data triggered cutthroat competition, garnered revenue per user of just 128 rupees — not even $2 — in the December quarter, practically flat from a year earlier. Being a new entrant, Jio isn’t saddled by the government’s revenue demands that have come to haunt Vodafone Idea and, to a smaller extent, Bharti. Until Mukesh Ambani, the deep-pocketed tycoon behind Jio, turns his attention from chasing market share to maximizing returns on his $50 billion foray, pricing will stay irrational and new investment will remain constrained.Although Bharti has raised new equity and convertible debt, at more than 1 trillion rupees, its net debt is onerous. It’s hard to see strong demand at the government’s auction of 5G airwaves in April. Vodafone’s long-standing tax dispute with New Delhi has been a cautionary tale. The business imploding because of another instance of government heavy-handedness will send a fresh bad signal about India’s business climate, though for the country’s telecom industry, the outlook will remain somber regardless of whether Vodafone Idea survives or not.To contact the author of this story: Andy Mukherjee at amukherjee@bloomberg.netTo contact the editor responsible for this story: Rachel Rosenthal at rrosenthal21@bloomberg.netThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services. He previously was a columnist for Reuters Breakingviews. He has also worked for the Straits Times, ET NOW and Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Reuters
Vodafone Group exits Facebook-led Libra currency group
The association has seen an exodus of its backers including financial companies Paypal Holdings Inc and Mastercard Inc amid regulatory scrutiny. Facebook announced in June last year a plan to launch the digital currency in partnership with other members of the association, but the project quickly ran into trouble with skeptical regulators around the world.
- Bloomberg
Vodafone Abandons Facebook-Led Libra Cryptocurrency Project
(Bloomberg) -- Telecom giant Vodafone Group Plc left the Libra Association, becoming the latest company to exit the Facebook-led group trying to create a new global cryptocurrency.The Libra Association, which was finalized last October, once expected to have as many as 28 total members when the project was announced in June. It is now down to 20 following earlier departures from Visa Inc., Mastercard Inc. and others that had committed to the project but then left before the group signed an official charter.“Vodafone is no longer a member of the Libra Association,” Dante Disparte, head of policy and communication for the association, said in a statement. “Although the makeup of the Association members may change over time, the design of Libra’s governance and technology ensures the Libra payment system will remain resilient. The Association is continuing the work to achieve a safe, transparent, and consumer-friendly implementation of the Libra payment system.”The idea for Libra -- a global, digital currency intended to make cross-border money transfers as easy as sending a text message -- has faced opposition at every turn. Facebook, the world’s largest social network, first proposed the idea last June, along with a number of high-profile partners. Many of them are no longer involved, and Facebook has pledged to appease all U.S. regulators before launching the currency. It’s unclear how long that might take.Coindesk earlier reported news of Vodafone’s departure from the group.In a statement, U.K.-based Vodafone said it plans to focus on its own digital payments efforts instead. Vodafone partly owns Safaricom Plc, which operates the M-Pesa mobile-payments app in Kenya, where more people keep their money on their phones rather than in banks. The text message-based app is used by about 35 million people globally to spend, borrow and send money to friends and family.“We will continue to monitor the development of the Libra Association and do not rule out the possibility of future co-operation,” Vodafone spokesman Steve Shepperson-Smith said.\--With assistance from Jenny Surane and Scott Moritz.To contact the reporter on this story: Kurt Wagner in San Francisco at kwagner71@bloomberg.netTo contact the editors responsible for this story: Jillian Ward at jward56@bloomberg.net, Robin AjelloFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Fool.co.uk
Forget buy-to-let! In 2020, I’d target 7-figure wealth with these 2 FTSE 100 stocks
These two FTSE 100 (INDEXFTSE:UKX) shares may offer impressive long-term returns in my view.The post Forget buy-to-let! In 2020, I’d target 7-figure wealth with these 2 FTSE 100 stocks appeared first on The Motley Fool UK.
- Reuters - UK Focus
Cordiant Capital aims to raise $350 million for telecoms fund, expands team
Asset manager Cordiant Capital is looking to raise around $350 million for a telecoms infrastructure equity fund and has hired two veteran dealmakers as it looks to benefit from strong growth in mobile data usage. Canadian-based Cordiant is speaking to potential anchor investors for the fund, Cordiant IX, co-Chief Executive Benn Mikula told Reuters.
- Reuters
Exclusive: New Indian law to protect foreign investors to exclude tax demands - documents
New legislation will improve protection for foreign investors in India by offering relief from possible policy changes but will uphold the state's right to tax them, according to its draft and government documents seen by Reuters. The bill also attempts to upgrade India's investment climate and boost foreign investment by setting up new adjudicating authorities to swiftly resolve disputes. It is part of India's efforts to become a $5 trillion economy by 2024, from around $2.7 trillion currently, the documents said.
- Reuters
BT, Vodafone may seek Johnson's support for Huawei - sources
Britain's BT and Vodafone are considering urging Prime Minister Boris Johnson not to risk the rollout of next generation mobile networks by banning China's Huawei [HWT.UL], sources said, confirming a Sky News report on Friday. Britain is set to take a final decision on Huawei's role in building new 5G networks this month. U.S. government officials have pushed for a total ban on Huawei on security grounds, and reports said they presented new evidence on Monday about the risks of using the Chinese company's equipment, branding it "madness".
- Reuters
UK's BT, Vodafone may seek PM Johnson's support for Huawei: sources
Britain's BT and Vodafone are considering urging Prime Minister Boris Johnson not to risk the rollout of next generation mobile networks by banning China's Huawei [HWT.UL], sources said, confirming a Sky News report on Friday. Britain is set to take a final decision on Huawei's role in building new 5G networks this month. U.S. government officials have pushed for a total ban on Huawei on security grounds, and reports said they presented new evidence on Monday about the risks of using the Chinese company's equipment, branding it "madness".
- Reuters - UK Focus
UK's BT, Vodafone may seek PM Johnson's support for Huawei -sources
Britain's BT and Vodafone are considering urging Prime Minister Boris Johnson not to risk the rollout of next generation mobile networks by banning China's Huawei, sources said, confirming a Sky News report on Friday. Britain is set to take a final decision on Huawei's role in building new 5G networks this month. U.S. government officials have pushed for a total ban on Huawei on security grounds, and reports said they presented new evidence on Monday about the risks of using the Chinese company's equipment, branding it "madness".
- Bloomberg
Franklin Cuts Vodafone Idea’s Debt Value to Zero on Court Snub
(Bloomberg) -- Franklin Templeton Asset Management (India) Pvt. marked down its debt exposure to Vodafone Group Plc’s India venture to zero, concerned by the operator having to pay $4 billion in back-fees as early as next week. The carrier’s shares suffered a record plunge.The payment deadline has led to “significant uncertainty with respect to our exposure” to the carrier, the fund house said in a statement on Friday. Shares of Vodafone Idea tumbled as much as 39%, reflecting concerns over the future of the beleaguered company.Local wireless operators including Vodafone Idea Ltd. and Bharti Airtel Ltd. suffered a blow Thursday, when the Supreme Court rejected their appeal against an October verdict requiring them to pay as much as $13 billion for spectrum and license fees. The companies were counting on some relief, such as a reversal of the earlier order, reduced liabilities or staggered payment.The court’s rebuff adds to the woes of India’s debt funds hit by a lingering shadow banking crisis that’s shaken the nation’s credit markets in the past 18 months. The order also puts a severe burden on the survivors of a tariff war sparked by the 2016 entry of billionaire Mukesh Ambani’s Reliance Jio Infocomm Ltd., an upstart that disrupted the industry with free calls and cheap data.Both Bharti Airtel and Vodafone Idea, with a combined net debt of about $30 billion, reported record losses in the September quarter.Vodafone CEO Says India Venture Is at Risk of Collapse“Experience in India suggests it is unwise to talk of uncertainties, but it is very hard to see how Vodafone Idea survives,” analysts at New Street Research LLP wrote in a report. “A 2-player outcome would therefore be by far the most likely outcome,” which is positive for Bharti, they said.While Bharti Airtel, run by tycoon Sunil Mittal, has managed to raise the $3 billion it needs to pay from a sale of shares and convertible bonds, Vodafone Idea’s billionaire Chairman Kumar Mangalam Birla has warned that the company may have to cease operations and file for insolvency if the government doesn’t ease their burden.Vodafone Group, the British carrier that owns 45% of the venture, wrote off the carrying value of its shares in Vodafone Idea in its earnings for the half-year through September after analysts flagged the possibility of further impairments.India is open to discussing ways to help ease the payment of these dues by wireless carriers, according to a government official with knowledge of the matter. Stripping out interest from the dues or paying the amount in tranches are some ideas that the government can discuss, this official said.Shares of Bharti Airtel climbed 5.5% at close on Friday in Mumbai after the court order raised the prospects of a telecom duopoly in India. The company’s perpetual, dollar-denominated bonds declined the most in more than two months.Not EasyThe court on Thursday also rejected requests by telecom companies for rehearing the petition seeking relaxations on penalties sought by the government and deadline for the payment.“We wonder how weaker operators like Vodafone Idea will make this payment, and not that Bharti Airtel is getting any respite as the amount has to be paid up,” said Gaurang Shah, vice president at Geojit Financial Services Ltd. “It isn’t easy to raise tariffs and retain customers. It remains to be seen how companies now respond to this decision because the court has twice spelled it out for them.”For two decades, the operators had challenged the way authorities calculated their annual adjusted gross revenue, a share of which is paid as license and spectrum fees. With the October ruling, the court upheld the government’s method, while rejecting the companies’ plea to exclude revenue from non-telecommunications businesses.“We are evaluating filing a curative petition,” Airtel said in a statement after the ruling, an option echoed by Vodafone Idea as well. “The industry continues to face severe financial stress and the outcome could further erode the viability of the sector as a whole.”The government had raised a total demand of around 920 billion rupees ($13 billion) against all telecom operators, including defunct ones, according to filings in the court.Here’s a list of companies and the amount they have to pay to the government:Last year, Vodafone Idea had raised 250 billion rupees from a rights issue.“Vodafone may have some cash through rights issue but it won’t be enough to meet the overall dues,” said Rajiv Sharma, an analyst at Sbicap Securities. “If there’s not enough relief, then it is going to be a matter of time before they shut down.”In the past decade, India has seen a consolidation in the telecommunications industry. Three non-state operators are left now, from about a dozen four years ago. While Vodafone’s local unit announced its merger with Birla’s Idea Cellular Ltd. in 2017, Aircel Ltd. and tycoon Anil Ambani’s Reliance Communications Ltd. slipped into bankruptcy last year. Others including Norway’s Telenor group and UAE’s Etisalat group exited the market.\--With assistance from P R Sanjai, Thomas Seal, Bijou George and Rahul Satija.To contact the reporter on this story: Upmanyu Trivedi in New Delhi at utrivedi2@bloomberg.netTo contact the editors responsible for this story: Sam Nagarajan at samnagarajan@bloomberg.net, ;Arijit Ghosh at aghosh@bloomberg.net, Bhuma Shrivastava, Ravil ShirodkarFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Reuters
Indian court rejects plea for relief on $13 billion telco levy; Vodafone tumbles
Shares of Vodafone Idea fell as much as 40% on Friday, losing $975 million in market value, after India's top court rejected mobile carriers' petitions for a review of its order to pay billions of dollars in levies to the government. India's mobile carriers had filed petitions to review an October ruling by the Supreme Court that upheld a long-standing government demand that wireless carriers pay 920 billion rupees (9.95 billion pounds) in overdue levies and interest. The court's rejection on Thursday of petitions by Vodafone Idea, Bharti Airtel and the now-defunct Tata Teleservices is likely to add to the financial woes of India's telecoms sector, which has been badly bruised by a price war.
- Bloomberg
India’s Top Court Rules Phone Carriers Must Pay $13 Billion to Government
(Bloomberg) -- Follow Bloomberg on Telegram for all the investment news and analysis you need.India’s Supreme Court ruled that wireless carriers including Bharti Airtel Ltd. and Vodafone Idea Ltd. need to pay $13 billion of dues to the government, rejecting an appeal by operators struggling to stem losses and reduce debt.A three-judge Supreme Court bench headed by Justice Arun Mishra on Thursday dismissed review petitions filed by the telecommunication companies against the October verdict, according to updates on the court’s website. Under that ruling, Vodafone Group Plc’s India venture has to pay $4 billion, while Bharti Airtel got a $3 billion bill -- all due on Jan. 24.The court also rejected requests by telecom companies for rehearing the petition seeking relaxations on penalties sought by the government and deadline for the payment.The court’s rebuff is the latest setback for the survivors of a brutal tariff war sparked by the 2016 entry of billionaire Mukesh Ambani’s Reliance Jio Infocomm Ltd., an upstart that disrupted the industry with free calls and cheap data. Both Bharti Airtel and Vodafone Idea, with a combined net debt of about $30 billion, reported record losses in the quarter through September, and were counting on the court to reverse its order.“We wonder how weaker operators like Vodafone Idea will make this payment, and not that Bharti Airtel is getting any respite as the amount has to be paid up,” said Gaurang Shah, vice president at Geojit Financial Services Ltd. “It isn’t easy to raise tariffs and retain customers. It remains to be seen how companies now respond to this decision because the court has twice spelled it out for them.”Eroding ViabilityFor two decades, the operators had challenged the way authorities calculated their annual adjusted gross revenue, a share of which is paid as license and spectrum fees. With the October ruling, the court upheld the government’s method, while rejecting the companies’ plea to exclude revenue from non-telecommunications businesses.“We are evaluating filing a curative petition,” Airtel said in a statement after the ruling. “The industry continues to face severe financial stress and the outcome could further erode the viability of the sector as a whole.”The government had raised a total demand of around 920 billion rupees ($13 billion) against all telecom operators, including defunct ones, according to filings in the court.Here’s a list of companies and the amount they have to pay to the government:Bharti Airtel recently raised $3 billion from sales of shares and convertible bonds to help meet the payment deadline. On the other hand, Vodafone Idea’s billionaire Chairman Kumar Mangalam Birla warned last month that the company would have to cease operations and head for insolvency if the government doesn’t provide relief measures.Last year, Vodafone Idea had raised 250 billion rupees from a rights issue.Vodafone’s India Unit Chairman Says End is Near If No Support“Vodafone may have some cash through rights issue but it won’t be enough to meet the overall dues,” said Rajiv Sharma, an analyst at Sbicap Securities. “If there’s not enough relief, then it is going to be a matter of time before they shut down.”In the past decade, India has seen a consolidation in the telecommunications industry. Three non-state operators are left now, from about a dozen four years ago. While Vodafone’s local unit announced its merger with Birla’s Idea Cellular Ltd. in 2017, Aircel Ltd. and tycoon Anil Ambani’s Reliance Communications Ltd. slipped into bankruptcy last year. Others including Norway’s Telenor group and UAE’s Etisalat group exited the market.(Updates with background throughout.)\--With assistance from P R Sanjai and Nupur Acharya.To contact the reporters on this story: Upmanyu Trivedi in New Delhi at utrivedi2@bloomberg.net;Ragini Saxena in Mumbai at rsaxena30@bloomberg.netTo contact the editors responsible for this story: Sam Nagarajan at samnagarajan@bloomberg.net, ;Unni Krishnan at ukrishnan2@bloomberg.net, Bhuma ShrivastavaFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
- Reuters - UK Focus
UPDATE 2-India's Supreme Court rejects telecom firms' plea for relief on govt dues
India's top court has rejected petitions by mobile operators including Bharti Airtel and Vodafone Idea seeking a review of its order late last year that they must pay the bulk of nearly $13 billion in dues to the government. The Supreme Court in October 2019 upheld a long-standing demand by the country's telecoms department that wireless carriers pay 920 billion rupees ($12.98 billion) in overdue levies and interest. The court's rejection on Thursday of petitions seeking a review of that order, filed by Bharti, Vodafone Idea and the now-defunct Tata Teleservices, is likely to add to the financial woes of India's telecoms sector, which has been badly bruised by a price war.
- Fool.co.uk
2 FTSE 100 dividend stocks I’m avoiding at all costs in 2020
These FTSE 100 stocks could cost investors money in 2020, according to this Fool.
- Fool.co.uk
Is the Vodafone share price an unmissable FTSE 100 bargain?
The Vodafone share price looks cheap, but the FTSE 100 income champion is struggling to grow says this Fool.
- Stockopedia
Vodafone (LON:VOD): should this dividend-payer be in your ISA?
When the going gets tough, dividends get cut. Given today's volatile market conditions, mature economic cycle, and historically high dividend yields that are o8230;
- Reuters
Vodafone Hutchison Australia partners with Nokia to kick off 5G rollout
The 5G drive comes as the joint venture is caught in a legal appeal process against an antitrust regulator's move to block its proposed A$15 billion mega-merger with TPG Telecom Ltd . In a joint statement, the companies said Vodafone Hutchison Australia, the 50-50 joint venture, would kick off its 5G rollout in the first half of 2020 with Nokia as the network vendor.
- Fool.co.uk
3 FTSE 100 dividend stocks I wouldn’t touch in 2020
Not all big dividends in the FTSE 100 (INDEXFTSE: UKX) are as desirable as they might look. Here are three I find unattractive.
- Yahoo Finance UK
Elite Mayfair boutique pays three partners £48m
Robey Warshaw employs fewer than 20 people but worked on Comcast's blockbuster $39bn takeover of Sky last year.
- Reuters - UK Focus
UPDATE 2-Dixons Carphone 1H profit plunges, maintains forecast as mobile turnaround on track
British electricals retailer Dixons Carphone stuck to its forecast for annual profit and said a plan to cope with the challenging mobile phone market was working, but it wasn't counting on any post-election boost. It reported a drop in first-half profit of 60 percent, though it maintained its financial guidance for its full 2019-20 year. UK voters headed to the polls on Thursday in an election that could break the impasse over Britain's exit from the European Union, but Dixons Carphone chief executive Alex Baldock said that political clarity wouldn't necessarily help consumer confidence.
