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It's not all about free cash flow it's also about earnings per share, and VOD have EPS down as 11.45c so more than enough to cover Divi's.
The high EPS includes proceeds from selling assets. They are one-off events so can be misleading when trying to judge the financial strength of a company. That is why FCF is also important.
FCF shows you what cash is being created or burned on an ongoing business basis.
VOD are projecting 3bn adjusted FCF 24, so when the adjustments that you do have to pay for are added back, FCF may be less than 1bn. From this they plan to pay over 2bn divs, so sell more assets or increase borrowing to cover.
You see the issue?
Debt gets paid down if assets are sold so less debt cost. Prices increases are happening and layoffs will start to appear in cost savings. There also no value on the balance sheet for non tangibles eg brand, customer base etc. if you think it’s not worth it, don’t buy it or short it!
Vod losing all its minuscule gains over the last few days
Vod is a pos and going bust
"Debt gets paid down if assets are sold so less debt cost."
but then revenues are lost from the asset sales and earnings can be impacted..... as can be seen with VOD who have reduced their cash flow expectation as a result of selling assets ....with the implications that the lower cash flows then have
FTSE and VOD wobble a bit and look who is back straight away. Welcome back to the board Jax, we have all missed your tripe.
"The high EPS includes proceeds from selling assets. "
yes and they are fooling some investors who think they are getting a "dividend" ...when in fact the "dividend" is partly coming as a result of returning money from asset sales and isnt fully down to making money from the company performance which it should be ...( asset sell dividends should be extra ,on top of normal business performance dividends)
ftse is up today avi
and about square over the 1 and 5 year chart
where is dog ****e vod in the same periods
bust
Jax, FTSE and VOD have trended down in tandem since 13.30 today if you cared to look at charts.
VOD going is not going to happen in your lifetime I am afraid.
Hell we cant even get to the 60's you keep promising us, let alone 40's.
Vod will get there
£30bn net debt
The interest charges on that bad boy will be destructive
Don’t forget declining revenue
I’m looking forward to the next TA when dopey MDV will slash the divi and the SP will tank
Jax, just for you below.
And dont forget, market cap is a mere £20 billion, for a business that takes in EUR 45 billion a year.
The debt is not really a big issue compared to revenues, and assets.
(EUR) 2023 Y/Y CHANGE
Revenue
45.71B
0.28%
Operating expense
10.39B
7.83%
Net income
11.84B
429.19%
Net profit margin
25.90
427.49%
Earnings per share
1.15
3.81%
Avocet123
Right now ...all the market cares about is whether interest rates are going to rise and whether inflation if going to come down further ..and the the effect of those on GDP and employment
only the return/earnings the assets provide are of much interest to the analysts and Investment bankers and Option dealers
Oh Avi you have lots to learn
The fact is that Vod is on a ski slop for the sole reason that it’s a dinosaur company with huge debts.
Nothing good coming out of Germany either.
Jax, I must have touched a raw nerve because your response is nothing short of rubbish.
No substance, but my expectations were low to begin with.
Why are you defending Vod Avi - serious question
It’s on a death spiral mostly thanks to MDVs incompetence over the years and now she’s in the driving seat will almost certainly seal Vod’s fate.
Vodafold
Anyway market is closed and Vod finished down over the day, month, year, 5 year…..
Totally as expected - MDV needs booting out
Jax. So if they do boot out MDV as you suggest & replace her, will you then support vodafone, or just continue with your usual, repetitive, negative, boring drivel? A constuctive answer would be welcome.