Why British Telecom Giant Vodafone's Shares Are Sliding Today
Portfolio Pulse from Anusuya Lahiri
Vodafone Group Plc (NASDAQ:VOD) reported a 4.3% YoY revenue decline to €21.94 billion in H1 FY24, attributed to FX movements and asset disposals. Service revenue fell 3.1% YoY to €18.62 billion. Adjusted EPS was €0.03, and operating profit dropped 44.2% YoY to €1.66 billion. Adjusted EBITDAaL was down to €6.4 billion, with a slight organic growth of 0.3%. The company used €(1.47) billion in adjusted free cash flow and reduced 2,700 roles. The interim dividend was maintained at €.0450 per share. Vodafone reiterated its full-year outlook for adjusted EBITDAaL and free cash flow. VOD shares fell 1.94% to $9.34.
November 14, 2023 | 2:56 pm
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NEGATIVE IMPACT
Vodafone's H1 FY24 results show a decline in revenue and profits, with a significant drop in operating profit. The interim dividend remains unchanged, and the company maintains its full-year outlook.
The reported decline in revenue and profits, along with a significant decrease in operating profit, is likely to negatively impact investor sentiment in the short term, leading to a potential decrease in VOD's stock price. The unchanged dividend and maintained outlook may provide some stability, but the immediate reaction is negative as reflected in the share price drop.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100