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Vodafone shares rise after mixed bag Q1 update
from Tuesday 25 July 2023
by cityam
Jess Jones
SHARES in Vodafone were given a needed nudge yesterday after an update from the ailing telecoms giant showed its turnaround strategy may be on its way to bearing fruit.
In what it described as a “better” first quarterly earnings report than what was forecast, Vodafone yesterday told markets it had seen a near-six per cent year-on-year revenue uplift in the UK and a nine per cent increase in its African business, though revenues in Italy, Spain and the vital German market continued to slip. Shares in the firm, which have fallen around 40 per cent over the last year, rose to close up near 3.84 per cent after the update.
Vodafone chief Margherita Della Valle (pictured) said the firm had seen “strong trad- ing” in its business segment.
“As we progress our plans to transform Vodafone, we have achieved a better service revenue performance across almost all of our markets,” she said.
“Looking ahead, we have taken the first steps of our action plan focused on customers, simplicity and growth, but we have much more still to do.”
Along with the update, Vodafone also announced the appointment of SAP finance boss Luka Mucic as its new CFO. It comes as the firm explores potential merger possibilities with Three which, if approved, would see the firm plan to invest £11bn in upgrading the UK’s 5G network.
Hargreaves Lansdown analyst Matt Britzman said the results showed “tentative signs of green shoots”, though cautioned the firm still had “a long way to go”.
LIKE A Big Mac on a hangover, Vodafone’s share price bump yesterday will offer only temporary relief. New boss Margherita Della Valle has inherited the mother of all morning-afters from Nick Read, taking over a telco losing revenue in key European markets and a bloated corporate structure.
To her credit, the Vodafone lifer has taken something of a scorched earth approach since taking the top job, announcing plans to radically slim down the firm and putting more emphasis on business services. There were promising signs from the
