November 12, 2024 07:55 GMT
COMMUNICATIONS: Vodafone Q3 Sees EM Offsets Weak German Performance
COMMUNICATIONS
Baa2/BBB/BBB[P]
Strong performance in emerging markets managed to offset an acceleration in weak German service revenues; looks neutral on the balance. Low number of consensus estimates.
- Q2 total revenue +0.5% YoY (+0.5% vs. BBG cons) w/ service revenue +4.2% YoY organically (H1 reported service revenue was flat cons).
- German service revenue -6.2% YoY organically in Q2 (vs. -1.5% YoY in Q1) on MDU law change.
- Q2 EBITDAal +2.5% YoY organically (H1 reported EBITDAal was +0.4% vs. cons).
- H1 FCF of EUR -950mn vs. EUR -1.4bn in H124 on lower taxes, WC flow and higher JV divs.
- Reported pro-forma EBITDAal leverage 2.6x from 2.5x at FY24 against the new policy of 2.25-2.75x.
- FY guidance affirmed.
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