Tuesday 22 May 2012 7:40 pm

ANALYST VIEWS | DOES VODAFONE’S DOWNGRADED OUTLOOK DAMPEN ITS RESULTS?

JONATHAN JACKSON KILLIK & CO Overall, today’s results were reassuring. Although the reduced guidance on revenue for next full year is a little disappointing, we are comforted by the expectation for stability in free cash flow, given that is the driver of the seven per cent dividend growth target. JERRY DELLIS JEFFERIES The outlook commentary is cautious. The company highlighted “ongoing competition” alongside weak consumer demand and “harsh regulation” as “material barriers to growth”. But its expectation that the ebitda margin will stabilise by March 2014 suggests it is confident of containing commercial costs. WILL DRAPER ESPIRITO SANTO The outlook is slightly disappointing, with downgrades mostly due to adverse exchange rate movements and tough conditions in Europe. However, in a sector context, the fact that Vodafone has reiterated a growing dividend should provide reassurance.

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