Vodafone Group plc (LON:VOD)’s full year revenue rose 4% to €45.6bn reflecting growth in Europe and Africa Service revenue. Total Service revenue rose 2.6% to €38.2bn. Underlying cash profits rose 5% to €15.2bn. Performance was in-line with previous guidance.
A final dividend of 4.5 cents was announced, taking the full year payment to 9 cents.
Nick Read, CEO, highlighted the group expects to deliver a “resilient” performance in the new financial year, including underlying cash profits of €15 – €15.5bn, but highlighted Vodafone isn’t immune to the wider macroeconomic challenges.
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Vodafone also acknowledged that: “On 14 May 2022, Vodafone was informed by Emirates Telecommunications Group Company ('Etisalat') that they have become the Group's largest shareholder with a 9.8% stake”.
The shares fell 3.0% following the announcement.
Vodafone's Earnings
Sophie Lund-Yates, Equity Analyst at Hargreaves Lansdown:
“Vodafone’s shares were down 3% after the market opened this morning, as investors sounded a tepid response to full year results. While the underlying operational performance was sturdy enough, the market was clearly expecting more. Subdued sentiment may well be coming from the warning that Vodafone isn’t immune to the wider macroeconomic challenges we’re seeing. Either way, the group has recently acquired a new largest shareholder, in the form of Emirates Telecommunications, which now owns 9.8% of Vodafone.
Emirates Telecommunications has said this isn’t the beginnings of a takeover bid, and is supportive of Vodafone’s position. The premium paid for the stake suggests there is indeed a lot of faith in a turnaround for the battered Vodafone group. While progress is steady, it’s hard to get away from the fundamental truth for telecoms – there is very little to differentiate from competitors in any real way other than price. That keeps a lid on margins. Full year results haven’t been a disaster, but they aren’t exactly shiny either.”
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