Vodafone Cuts Dividend, Meets Fiscal Year 2019 Adjusted Ebitda Expectations -- Earnings Review
14 Mayo 2019 - 7:33AM
Noticias Dow Jones
By Adria Calatayud
Vodafone Group PLC (VOD.LN) reported results for fiscal 2019 on
Tuesday. Here's what you need to know:
REVENUE: The U.K. telecommunications company generated revenue
of 43.67 billion euros ($49.06 billion) for the year ended March
31, down 6.2% from EUR46.57 billion a year earlier. Vodafone missed
analysts' expectations of EUR45.01 billion, according to a
consensus based on estimates by 15 analysts provided by
FactSet.
ADJUSTED EBITDA: Vodafone's adjusted earnings before interest,
taxes, depreciation and amortization--its preferred profit
measure--came to EUR14.14 billion, broadly in line with a
FactSet-provided consensus. Organic adjusted Ebitda excluding
handset financing costs and other exceptional items rose 3.1%, in
line with the company's guidance of around 3% growth in underlying
organic adjusted Ebitda.
WHAT WE WATCHED:
-DIVIDEND: Vodafone slashed its total dividend for fiscal 2019
by 40% to 9.0 European cents a share, reversing a previous
commitment to maintain it unchanged at 15.07 European cents. The
move was widely expected, following press reports over the
weekend.
"We think the dividend cut is the right thing to do--there was
little credit being given for the prior dividend, it removes an
overhang from the company and accelerates de-leveraging," analysts
at UBS said in a note.
-GUIDANCE: The company has guided for adjusted Ebitda of between
EUR13.8 billion and EUR14.2 billion in fiscal 2020, implying
single-digit organic growth. Free cash-flow before spectrum costs
is expected to come in at least at EUR5.4 billion, Vodafone
said.
Analysts at Jefferies said Vodafone should experience similar
trends in the first quarter of fiscal 2020 and an improvement
toward the second half of the year.
-5G: Vodafone said it will switch on its 5G network in the U.K.
on July 3, when the service will become available in seven
cities--Birmingham, Bristol, Cardiff, Glasgow, Manchester,
Liverpool and London. A further 12 U.K. cities will follow later in
the year. The company said it will offer 5G roaming in the U.K.,
Germany, Italy and Spain over the summer.
Write to Adria Calatayud at
adria.calatayudvaello@dowjones.com
(END) Dow Jones Newswires
May 14, 2019 08:18 ET (12:18 GMT)
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