Vodafone
Vodafone PLC (UK Ticker: FTSE 100 – VOD) (US Ticker: NASDAQ – VOD) is a multinational telecommunications company.
In 1985 Vodafone was the first ever UK company to make a mobile call, today the group is a new generation connectivity & digital services provider.
Annual revenue for the group is €36,717 Euros which is down from FY 2023 €37,672 Euros.
In Europe Vodafone is one of the largest 5G network providers and they also provide fixed gigabit fibre and TV platforms.
Vodafone has a total of 330 million customers in 15 countries.
There are 98 million European mobile customers with an additional 17 million fixed line customers.
Vodafone has other partnerships with 45 mobile networks in countries globally.
Vodafone have scale in the telecommunications sector however it is highly competitive and they must ensure they lead in the Digital revolution including the Internet of Things IoT, Mobile Edge computing and Data Centres.
Geographies covered include: Africa, Asia & Oceania then the company offers some diversification as it is not reliant on one country.
Vodafone average five year share price
The Vodafone share price over the last five years has been far from impressive, dropping over 50% during the period.
Telecoms companies have had to stump up large costs to rollout 5G over the past few years, so combine this large capital outlay with the fierce competition within the industry and Vodafone has failed to impress on many fronts. The group has even exited some European markets to focus on its key markets in order to drive growth. There is one bright spot which is Africa where market share and revenues are increasing.
The group are undergoing plans to make it a leaner organisation and is going through a transformational period, whilst managing to lose market share in key European countries like Span, Italy & Germany, so buyer beware.
At the lowest point the shares were just £0.6271 on the 09/02/2024.
To the highest point the share price was £1.67 on the 13/11/2019.
If I was to purchase further shares today (06/08/2024) my target price would be a mere £0.65 pence per share.
Until further evidence of growth returning and debt has been reduced, then I would not be purchasing any more shares anytime soon.
Vodafone Dividends
Dividends are distributed bi-annually in the months of February & August each year.
Future investors should be aware that from 2025 the group has decided to slash its payout, announcing a dividend cut to around 1.5 pence per share.
Total dividend income received over a 6 year period from holding 1,000 shares is £466.44
P/E: 11.39 (02/08/24)
Dividend Yield: 10.56% (02/08/24)
Further income analysis can be found in the attached file below:
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