Vodafone: Seeking shards of light in gathering clouds
24 November 2021
Vodafone’s leverage issue continues to drive its strategy and operational focus, as evidenced in its H1 results with solid EBITDA but lacklustre revenues.
Its leverage crisis is severely exacerbated by the prospect of a fibre build in Germany as well as a sizeable headwind to its cable business momentum there. Further sell-downs at Vantage will help and we view the prospects of consolidation as slightly improved, with Spain the most promising option.
Growth in the UK appears to be on hold and the outlook is mixed with VMO2’s notice for early termination for its MVNO, ongoing B2B weakness expected but significant inflation-linked price rises on the cards.