Research archive for VOD

Vodafone (parent company of Vodacom) have raised their full year guidance and their outlook, what a twist. The stock is trading a percent and a quarter higher this morning. What struck me immediately is that their share from Verizon wireless is a little less than 40 percent of overall profits. Whoa!! As we threw this number around the office we suspect that in the long run, when Vodafone need the money, they could look for a buyer. Verizon wireless has 93 million customers. With monthly ARPU's of 53.4 US Dollars, that is actually down from 54.6 Dollars last year.

Vodacom results hit the screens this morning. This is for the six months to end September 2010. A whole lot of positives here, that is for sure. Nearly 40 million customers, at 39.4 million across the group. Strong growth on the data side, check this out: "Data users increased by 1.2 million in the six month period to reach 7.9 million at 30 September 2010, of which 1.9 million were active data bundle users." We always scoff at the notion that these companies are ex-growth, because of a) the data phenomenon and b) the low base of the average subscriber.

Vodacom released a trading statement for their six months to September 2010, yesterday mid-morning. Results are expected 8 November, pencil that into your diaries. First the company refreshes you on what happened this time last year: "Shareholders of Vodacom Group are reminded that headline earnings per share ('HEPS') reported for the six months ended 30 September 2009 of 219 cents per share were impacted by 52 cents per share in respect of losses on the remeasurement of financial instruments and the reversal of a deferred taxation asset. Earnings per share ('EPS') reported for the six months ended 30 September 2009 of 4 cents per share were impacted by 215 cents per share mainly in respect of impairment losses." A whole lot of moving pieces.

And then the first mobile company in South Africa, Vodacom, reported results for the full year to March. Most notable from the results was the bigger contribution from the data division, offsetting lower voice offerings. In this mature market the data portion contributed nearly 32 percent more than last year to 4.5 billion Rands. Out of 58 billion Rands in total. Plus overall customers accessing data services has risen by 42 percent to 1.1 million people. 510 cents worth of earnings and 175 cents worth of dividends on a 58 Rands share price, seems about fair to me. The biggest problem for me remains that geographically this business is bound to South Africa. The EBIDTA contribution from South Africa is even higher this financial year at 93.9 percent of the group. Gateway. On interconnect rates: The Group will actively participate in the ICASA public consultation process on the draft regulations.