The British telephony group Vodafone published a slight increase in turnover for its staggered first quarter on Monday, with a drop in its income in Germany, its largest market, offset by an increase in the United Kingdom driven in particular by the inflation. Revenue thus increased by 1.6% compared to the same period last year, to 11.3 billion euros, but fell by 0.5% in Germany, reflecting a loss of customers broadband internet and television after the entry into force at the end of 2021 of new, more consumer-friendly rules.
However, the groupmade good progress towards stabilizing (its) business performance in Germany“, where customer losses have reduced compared to the previous quarter, argued Nick Read, group chief executive, in a press release. The telecom operator, one of the heavyweights in Europe, has been carrying out a restructuring for several years which has led it to refocus on Europe and Africa, after undertaking a savings program and listing on the stock market in Frankfurt its subsidiary Vantage Towers. “We continue to actively pursue opportunities with Vantage Towers and strengthen our market positions in Europeadded Nick Read on Monday.
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The fall in revenue in Germany was notably offset by an increase of 8.3% in the United Kingdom, driven by price increases for its contracts, in a country where inflation could exceed 11% this year, but also the increase in its customer base or an increase in its revenues from roaming. The group also notes that the inflation which is racing in Turkey, at 78.6% over one year in June, caused its turnover to jump by 35.8% in this country, but that this increase is erased by the depreciation of the Turkish lira against the euro.
Those are “mixed results“, most “in a context of uncertainty, with concerns about a global recession“Vodafone could be seen as a value”stable to weather the storm, with relatively stable earnings and a robust dividend“, according to Victoria Scholar, analyst for Interactive Investor. Investors hesitated Monday morning, the action of Vodafone moving almost to equilibrium on the London Stock Exchange around 08:20 GMT, at 129 pence. Vodafone had published in May a sharp increase in annual profit for its staggered 2021/2022 financial year, mainly thanks to a lower tax bill, and announced the rise to nearly 10% of its capital in the Emirati group Emirates Telecommunications Group (Etisalat, or e&), which became its first shareholder.
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