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.
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.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
European Central Bank meeting
Learn about how the ECB meeting affects interest rates and price stability ahead of the next announcement.
- How might the next meeting affect the markets?
- What are the key rate decisions to watch?
- Why is the Governing Council announcement important for traders?
Live prices on most popular markets