Bottom Line: A far-from mobile company has to pay whatever the locals want
OH YES, it’s back on again. A slightly higher price has secured this Spanish asset for Vodafone, handily expanding its offerings in the Iberian peninsula.
The good news for Vodafone is that it has money to burn right now, after the sell-off of its cash cow stake in Verizon for £84bn.
The bad news is, it doesn’t have much choice. Vodafone can hope for a future in fast-growing emerging markets, but right now it remains a European player.
Look at the results for the most recent quarter. £6.5bn in revenue from Europe. £3.2bn from Africa, Asia Pacific and the Middle East together.
In the short term at least, Vodafone is stuck looking for growth opportunities in mainland Europe: a sport only a masochist could love.
The timing may be better than it seems. Services PMI data earlier this month showed Spain’s best quarter of growth in seven years. But if so, that will be down to good fortune more than strategy. Vodafone has to make the best of where it is.