LONDON :Vodafone, the telecoms group focused by activist investor Cevian Capital, mentioned it was working to enhance shareholder returns by tackling weaker components of its enterprise, as it reported an increase in quarterly revenue.
Chief Executive Nick Read mentioned Vodafone had delivered a “solid quarter”, with a 2.7per cent rise in third-quarter group service revenue, together with constant progress in its largest market Germany.
Analysts, nonetheless, mentioned buyers have been targeted on consolidation alternatives in markets such as Italy and Spain, which have lengthy been problematic for Vodafone.
Chief Executive Nick Read, who has referred to as for regulators to permit extra consolidation, mentioned: “We are also committed to creating value for our shareholders through proactive portfolio actions and continuing to improve returns at pace.”
The group is concentrated on strengthening business momentum in Germany, he mentioned, and accelerating its transformation in Spain, the place revenue continued to say no.
Vodafone misplaced 53,000 contract cell prospects and 50,000 broadband prospects in Spain, whereas it recorded its eighth consecutive quarter of decline in Italy.
Shares in Vodafone, that are buying and selling on the similar stage as 12 months in the past, have been 2.8per cent greater in early offers.
Analysts at Citi mentioned they believed the numbers ought to be passable for the market.
“The focus is firmly on developments in terms of in-market consolidation in UK/Italy and Spain and other initiatives, including the de-consolidation of (towers business) Vantage,” they mentioned.
Reuters reported earlier this month that Vodafone and Iliad have been in talks to mix their companies in Italy, the place operators proceed to battle value strain.
Vodafone mentioned in November it anticipated to report adjusted core earnings of 15.2 billion to fifteen.4 billion euros and adjusted free money move of no less than 5.3 billion euros.
Analysts anticipate adjusted core earnings of 15.26 billion euros and adjusted free money move of 5.34 billion euros, in keeping with a company-compiled consensus.
(Reporting by Paul Sandle; Editing by Kirsten Donovan)