Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Vodafone-Airtouch (NYSE: VOD) -- Ignore unavailable to you. Want to Upgrade?

To: MrGreenJeans who wrote (3139)	5/24/2001 8:03:35 AM
From: MrGreenJeans	Read Replies (1) \| Respond to of 3175

Vodafone acquisition spree in focus Full-year results from mobile phone giant due on Tuesday By Gareth Vaughan, FTMarketWatch 11:26:00 AM BST May 24, 2001 LONDON (FTMW) - Full-year results from Vodafone [UK:VOD] on Tuesday will be scrutinised to see what sort of impact the world's biggest mobile phone operator's acquisition spree has had on the group's bottom line. Vodafone launched its U.K. network in 1985 and in just 16 years with acquisitions such as Mannesmann in Germany and AirTouch in the U.S., has amassed 83.4 million customers in 29 countries. It will report pro-forma proportionate results as the company's make-up has changed, expanding dramatically over the past year. Analysts expect revenue for the year to March 31 to rise to between £21-23 billion versus pro-forma proportionate revenue of £17.4 billion - according to SG Securities - in the year to March 31, 2000. Ebitda (earnings before interest, tax, depreciation and amortisation) is seen growing to £6.8-7.1 billion from £5.5 billion and pretax profit is forecast at £3.8-4.7 billion versus £3.4 billion. Earnings per share of between 3.3-3.4 pence are expected with a dividend of about 1.4 pence per share. Buy, buy, buy Over the past two years Vodafone, based in Newbury, Berkshire, has used its shares to fund a swathe of deals such as Mannesmann, Airtel, Eircell and take stakes in Swisscom Mobile, Japan Telecom, China Mobile and Mexico's Iusacell. In the U.S. Vodafone combined AirTouch with Bell Atlantic and GTE's mobile phone operations creating Verizon Wireless, in which the British group holds 45 percent. Analysts at SG Securities estimate that 3.6 billion Vodafone shares, or 5 percent of the group's enlarged share capital, are now over hanging the market. These shares, which as SG puts it are "looking for a new home", are in the hands of the likes of Hutchison Whampoa [US:HUWHY] and Banco Santander Central Hispano [US:STD]. The British group will also be watched for any expression of interest in buying British Telecom [UK:BTA] and SBC's [US:SBC] combined 31 percent stake in French telecoms group Cegetel. The stake is valued at about €7.4 billion (£4.5bn). Vodafone currently owns 15 percent of Cegetel and 20 percent of SFR, its cellular phone unit. See FT.Com story. Bullish Gent In November, when Vodafone posted its half-year figures, CEO Chris Gent predicted a stronger performance in the second half. "We expect significant improvements in the percentage growth figures for both operating profit and ebitda in the group's full-year figures," Gent said. Vodafone's [US:VOD] half-year ebitda rose 24 percent from the equivalent period of the previous year to £3.3 billion and operating profit climbed 19 percent to £2.3 billion. Gent added that second-half ebitda margins, a measure of profitability, should rise to 35 percent from 30 percent in Germany and by 3 percentage points to 33 percent in the U.K. See story on half-year results. Vodafone's half-year net debt stood at £13.2 billion and Gent said this should be £10 billion or lower by the end of the year. Last month Gent said customer growth would slow over the coming year as about seven out of 10 people in most Western European countries now own mobile phones. He said Vodafone would focus on improving margins, retaining existing customers and cash-flow growth, rather than acquiring new customers and building market share. Vodafone added 30.1 million customers in the year to March 31. Mobile data under the spotlight Another focus of the results will be any comments on the rollout of GPRS (general packet radio services) and 3G (third generation) technology. The two are expected to enable high-speed always-on Internet connectivity through mobile phones making new advanced data services possible. Mobile phone operators hope data services will boost revenue as the growth of new mobile phone customers slows. Still, teething problems and a shortage of GPRS-enabled handsets have delayed the launch of GPRS networks this year and similar fears exist for 3G networks, which Vodafone hopes to launch in 2002. Despite the huge sums spent on 3G licences - Vodafone paid £6 billion in the U.K. alone - there's plenty of scepticism about mobile data services. "It is still unclear whether data will fully replace subscriber growth as the key revenue driver for the industry," analysts at SG Securities said in a research report this week. "Until GPRS is successfully launched and take-up, usage and revenue statistics are available in mid 2002, we do not see Vodafone achieving our sum of the parts 285 pence (per share) valuation." Last month Vodafone said revenue from data services was 8.1 percent of its total service revenue in the year to March 2001, up from 5.5 percent in the first half of the fiscal year. See related story. The company has a target of making up to a quarter of its total revenue from data services by 2004.