Vodafone Group PLC (VOD) -FY24 Preliminary Results

[idpickering]

Improving financial performance & transformation gaining momentum

"A year ago, I set out my plans to transform Vodafone, including the need to right-size Europe for growth. Since then, we have announced a series of transactions and we are now delivering growth in all of our markets across Europe and Africa.

We performed slightly ahead of expectations in the financial year, with good organic service revenue growth of 6.3% and organic EBITDAaL growth of 2.2%. Our Business division - a key growth driver - achieved 5.4% revenue growth in the fourth quarter.

Much more still needs to be done in the year ahead. We will step-up investment in our customer experience, improve our underlying performance in Germany and accelerate our momentum in Business, whilst also continuing to simplify our operations throughout the group. We are fundamentally transforming Vodafone for growth."

Margherita Della Valle
Group Chief Executive

And later;

Proposed after the end of the year and not recognised as a liability:

Final dividend for the year ended 31 March 2024: 4.50 eurocents per share

Dividends will continue to be declared in euros, aligning the Group's shareholder returns with the primary currency in which we generate free cash flow, and paid in euros, pounds sterling and US dollars. The foreign exchange rate at which future dividends declared in euros will be converted into pounds sterling and US dollars will be calculated based on the average World Markets Company benchmark rates over the five business days during the week prior to the payment of the dividend.

The Board is recommending total dividends per share of 9.0 eurocents for the year. This includes a final dividend of 4.5 eurocents compared to 4.5 eurocents in the prior year.

The ex-dividend date for the final dividend is 6 June 2024 for ordinary shareholders and 7 June 2024 for ADR holders, the record date is 7 June 2024 and the dividend is payable on 2 August 2024.

(2023: 4.50 eurocents per share)

https://www.investegate.co.uk/announcem ... ts/8193929

Also posted on Company News here; viewtopic.php?p=664201#p664201

I don't hold these, but I know some here do, so this may be of interest here.

Ian.

[NeilW]

The sting in the tail being

Following the right-sizing of the portfolio as a result of the sale of Vodafone Spain and Vodafone Italy, the Board has determined to adopt a new rebased dividend from FY25 onwards. The Board is targeting a dividend of 4.5c per share for FY25, with an ambition to grow it over time. The new dividend has been set at a sustainable level, which ensures appropriate cash flow cover and sufficient flexibility to invest in the business for growth. The Board has also approved a capital return through share buybacks of up to €2.0 billion of proceeds from the sale of Vodafone Spain. The Board anticipates the opportunity for further share buybacks of up to €2.0 billion following the completion of the sale of Vodafone Italy, which is expected in the first half of 2025.

[daveh]

The sting in the tail being

Following the right-sizing of the portfolio as a result of the sale of Vodafone Spain and Vodafone Italy, the Board has determined to adopt a new rebased dividend from FY25 onwards. The Board is targeting a dividend of 4.5c per share for FY25, with an ambition to grow it over time. The new dividend has been set at a sustainable level, which ensures appropriate cash flow cover and sufficient flexibility to invest in the business for growth. The Board has also approved a capital return through share buybacks of up to €2.0 billion of proceeds from the sale of Vodafone Spain. The Board anticipates the opportunity for further share buybacks of up to €2.0 billion following the completion of the sale of Vodafone Italy, which is expected in the first half of 2025.

Nothing new there - they told us that back in March when they updated on the sale of Vodafone Italy. Personally I think I'd rather they used the €4b to pay down debt, which still seems to be excessively high. Though with the share price so depressed its not a bad time to buy back the shares.

[Alaric]

Though with the share price so depressed its not a bad time to buy back the shares.

They also cut the dividend back before COVID to the chagrin of those who thought it a good HYP choice on yield grounds. The share price has continued to tank, pushing the reduced dividend yield upwards. I suppose they have the cash flow to pay dividends without having to borrow it.

[yorkshirelad1]

Market close: news: Vodafone in the green: On London’s equity markets, Vodafone Group jumped 4.86% after reporting annual results slightly above forecasts. The telecoms giant's operating profit fell 74.6%, primarily due to disposals in the prior financial year.

https://www.sharecast.com/news/market-report-close/london-close-stocks-manage-gains-as-unemployment-rises--16776951.html

(So clearly not worried about the cut in dividend, noted above)

(I hold)