Vodafone Revenue Meets Estimates, CEO Says ‘We Can Do Better’

Vodafone Group Plc reported third-quarter service revenue of €9.52 billion ($10.4 billion), meeting the average analyst estimate.

(Bloomberg) — Vodafone Group Plc reported third-quarter service revenue of €9.52 billion ($10.4 billion), meeting the average analyst estimate.

Service revenue gained 1.8%, the Newbury, England-based company said in a statement on Wednesday. That compared to the average 1.75% growth estimate from five analysts surveyed by Bloomberg.

“Although we’re continuing to target our financial guidance for the year, the recent decline in revenue in Europe shows we can do better,” said interim Chief Executive Officer Margherita Della Valle. “There is more to do and our focus is to provide a better service to our customers, become a simpler business and deliver growth.”

Key Insights

Vodafone is in leadership limbo after ousting Chief Executive Officer Nick Read in December, with Chief Financial Officer Della Valle at the helm in the interim.
The company is cutting costs in the face of energy and labor inflation, while trying to turn around key markets like Germany, where organic service revenues are declining.
It’s also working to combine its mobile operations in the UK with Three UK, which will create a top mobile carrier if it can overcome fierce regulatory scrutiny.
Management is also fielding strategic investors like United Arab Emirates-backed Emirates Telecommunications Group Company PJSC, known as e&, which has slowly increased its position to 12% and may be interested in Vodafone’s African assets. French billionaire Xavier Niel holds 2.5% and last year unsuccessfully bid on Vodafone’s Italian division.

Market Context

Vodafone shares had fallen 28% in the 12 months through Tuesday, versus a 15% drop in the Stoxx 600 Telecommunications Index.
Of the 23 analysts surveyed by Bloomberg, 13 rate the stock Buy, 6 Hold and 4 Sell.

Get More

Statement
NOTE, Jan. 31: Vodacom 3Q Revenue 30.71B Rand Vs. 26.75B Rand Y/y
NOTE, Jan. 24: Vodafone Sells British HQ And Leases Part Back Amid Downsizing
NOTE, Jan. 17: Phone Bills to Jump by Around 14% Amid UK’s Stubborn Inflation
NOTE, Jan. 6: Vodafone Is Said to Pick Egon Zehnder to Lead Hunt for New CEO

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