Vodafone, new 2 billion buyback after Italian exit
Start of share buy-back programme using proceeds from sale of Italian operations. Uk multinational still closes 2024-25 with net loss of 3.7 billion
2' min read
2' min read
The numbers are those of a heavy balance sheet. But for Vodafone, the British multinational telecommunications company - which has exited Italy after the sale of the branch to Swisscom - 2025 is also the year in which the transformation initiated two years ago by ceo Margherita Della Valle is realised: rationalisation of the portfolio, cutting of debt, betting on core markets and restitution of value to shareholders. On the results of the last financial year Vodafone will pay a dividend of 4.5 cents per share (9 cents last year's coupon), declaring its intention to grow the remuneration to shareholders over time. The stock market rewarded: +7.26 per cent
All this, however, in the context of a 2024-25 financial year that closed with a net loss of EUR 3.7 billion compared to the EUR 1.5 billion profit of a year earlier. This was due to write-downs - more than 4.5 billion - concentrated mainly in Germany and Romania: markets that do not shine, indeed ballast.
Vodafone, however, is not just licking its wounds. It has sold - Spain, Italy, Vantage - cashing in 13.3 billion and lowering its debt to below 22.5 billion. With the proceeds of the sale of Vodafone Italy, it has thus initiated a 2 billion buyback plan (500 million left yesterday), which is in addition to a similar transaction concluded a few days ago (after the sale of Spain).
Behind the group's forced diet is CEO Margherita Della Valle's desire to 'transform Vodafone'. Since her arrival she claims to have 'reshaped Europe', while admitting that 'there is still a lot to do. But this transition period has repositioned Vodafone for multi-year growth. Looking ahead, we expect broad momentum in Europe and Africa and for Germany to return to revenue growth this year'.
It is precisely Germany, however, Vodafone's main market (worth 35 per cent of service revenues and 40 per cent of Group adjusted Ebitdaal) that is currently turning its back: revenues down 5 per cent, more than 100,000 customers lost on broadband, Ebitdaal down 13 per cent. Compounding the picture is a law prohibiting homeowners from including TV and Internet in their rent. Result: Vodafone lost thousands of condominium subscribers.
