Vodafone has become the latest large telecom group to express a more encouraging revenue outlook, despite the spread of profitable roaming earnings in the first half of the epidemic.
The company said a stable financial performance during the lockdown and “good trade momentum” has made it more confident about its profit in the second half. This will be between 14.4bn months and 14.6bn months compared to the previous year .5 14.5bn in the previous year from 1221 to March 2021, with interest, taxes, depreciation and or adjusted income before payments.
This view is comparable to a slightly lower profit performance loss guide from a stable one given in February.
“Today’s results have boosted confidence in our full-year outlook,” said Nick Reid, CEO. Shares of Vodafone rose 3 percent to 123.5p on Monday.
The group has been added to the list of peers in the sector, including Verizon, BT and Orange, who have shown more confident growth with their latest results. Share prices in the European telecom sector, which were under pressure during the Covid-19 lockdown despite the importance of services provided by companies, have risen in recent weeks.
Mr Reed said mobile data usage had increased by 30 per cent and the number of voice calls by 20 per cent since the epidemic began because “people are having more conversations than before”.
UK-based Vodafone said revenue for the six months to September fell 2.3 percent to ২১ 21.4 billion, but would have grown without the impact of low-roaming revenue of about 2 percent of the group’s total.
Vodafone was hit by a network in large tourist markets such as Italy and Spain, hitting Vodafone, which was unable to travel during this period due to restrictions on the spread of the Covid-19 across Europe. Roaming revenue fell 3.5 percent in the first three months of June.
However, Vodafone’s first-half results still beat analysts’ expectations after the injury. B 7bn’s consolidated EBITDA was ahead of the forecast when pre-tax profit over a six-month period compared to a loss of 11,511m a year ago. The group will pay a dividend of 4.5 cents per share.
On Tuesday it will provide more financial details about its tower division, the possible size of the listing of Vantage Towers, more funds to raise funds and increase dividends.
The engraving of the tower unit and the listing of Frankfurt are intended to unlock the value of Vodafone’s balance sheet because the value of infrastructural assets is captured at a much higher rate than that of telecom carriers. Vodafone wants to hold the lion’s share of the business.
Jefferies analyst Jerry Delis said the new earnings outlook reflects growth expectations in the second half and that the floating floors of the Vantage Towers will be made “more stable” alongside the core business.
The move will have a clear impact on Vodafone’s net debt, which stood at € 44 billion at the end of September. The European telecom sector has a lot of debt despite high levels of cash production due to the high cost of spectrum purchases and historic acquisitions.
However, takeover activity has also increased in recent months, and it is expected that markets such as Spain or the UK could be consolidated if European regulators allow more deals.
Shares at Vodafone rose nearly 7 percent to 127.8p.