Vodafone Group NASDAQ: VOD said it is entering “a new chapter” as a simpler and stronger business after a three-year transformation spanning its portfolio, capital structure and operating model, while management pointed to continued growth in fiscal 2027 and beyond.
Vodafone share price dropped today, May 12, even as the company published strong financial results, helped by its strategic pivot to its main markets. It dropped to 112p, from the year-to-date high of 121.95p.
Revenue was driven by strong service revenue growth and the consolidation of Three UK, which was partially offset by foreign-exchange movements.
Vodafone Group PLC (LSE:VOD) reported improved revenue and profits rose for the past financial year as the telecoms group returned to growth in Germany and benefited from the inclusion of Three UK in its results. Total revenue increased 8.0% to €40.5 billion, while service revenue rose 8.8% to €33.5 billion.
Vodafone Group PLC's (LSE:VOD) move to take full control of its UK joint venture has been broadly welcomed by analysts, with questions remaining over how it will affect capital returns. The FTSE 100 telecoms group yesterday said it had agreed to buy CK Hutchison's 49% stake in VodafoneThree for £4.3 billion, valuing the business at £13.85 billion including debt.
CK Hutchison Holdings, the Hong Kong-based conglomerate controlled by the city's richest person Li Ka-shing, has agreed to sell its 49% stake in a joint venture with U.K. telecom giant Vodafone for £4.3 billion ($5.8 billion) in cash.
Vodafone Group PLC (LSE:VOD) has agreed to buy out its partner in VodafoneThree for £4.3 billion, taking full ownership of the UK mobile and broadband operator less than a year after the joint venture was created. The FTSE 100 telecoms group said it will use its existing cash resources to acquire the 49% stake held by Hong Kong's CK Hutchison through a share cancellation, valuing the combined business at £13.85 billion.
Vodafone Group will take full ownership of its joint venture with CK Hutchison after the Hong Kong conglomerate agreed to sell its stake in one of the U.K.'s largest mobile operators for more than US$5 billion.
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UBS reckons Vodafone Group PLC (LSE:VOD) recent rally may have run too far, warning the telecoms group could fade after fourth-quarter results despite the broker raising its price target. The Swiss bank lifted its 12-month target to 95p from 84p but kept a Sell rating on the shares, which closed at 115p on 29 April.
Vodafone Group (VOD) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #1 (Strong Buy).
European mobile and broadband operator Vodafone said it would offer its small business customers advanced cybersecurity and agentic AI through its $1 billion strategic tie-up with Google Cloud agreed in October 2024.