Vodafone share price: 4 things to watch out for in its Q1 results

After reporting a major £6.6 billion loss that saw its slash its dividend by 40% in its full-year results investors will be hoping for better news in its first trading update of the new financial year.

Vodafone will unveil its Q1 results on Friday, with investors hoping for a bright start to the new financial year after the company suffered massive losses in its annual results back in May.

IG has compiled a list of things investors will be paying close attention to in its upcoming trading update.

Can Vodafone stem its losses?

In May, Vodafone revealed a £6.6 billion loss in its full-year results that saw it slash its dividend by 40% to reduce the amount of debt on its balance sheet and invest in superfast 5G broadband.

With the telecoms company’s first quarter results set to be released on Friday next week, it will be hoping to kick the new financial year off on strong footing to avoid its share price falling any further.

Will Vodafone’s share price continues to slide?

Over the last 12 months, Vodafone’s share price has fallen by more than 27% to 130p share, down from 177p.

In the wake of its disappointing full-year results its share price tumbled more than 11%, hitting 123p a share, with its share price capable of falling below that level next week if its unable to deliver a strong performance in its Q1 results.

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Will Vodafone leave its full-year guidance unchanged?

Vodafone’s full-year 2020 guidance sees it targeting an adjusted EBTDA of €13.8 billion - €14.2 billion, implying low single digit organic growth, with free cash flow of at least €5.4 billion.

Investors will be hoping that the telecoms provider will be able to remain on track to hit its targets for the new financial year and not be forced to downgrade in the wake of a disappointing set of results.

Vodafone bosses cut bonuses after poor performance

In a gesture of goodwill to shareholders and in response to its disappointing performance, Vodafone’s senior management, including its CFO and CEO have voluntarily taken a 20% cut in their annual share award bonuses.

Its management team put the voluntary bonus cuts on the agenda of its AGM on Tuesday, with shareholders voting to approve the motion.

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