Vodafone: pressure is still on


24 May 2019

Vodafone’s operating performance worsened again this quarter with revenues down 3.3% and an extension of its underperformance relative to peers 


Vodafone was right to cut its dividend given the extremity of the cash constraint. With financials in Euro terms in negative territory and worsening, an elevated and progressive dividend was not sustainable 


In spite of difficult market conditions, the lower end of guidance looks achievable as comparables will become easier and football rights costs decline. The transformation programme will need to pay off fast to deliver any meaningful growth
 

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