All trading involves risk. Losses can exceed deposits.

Vodafone to invest £7bn in upgrade

A windfall from selling Vodafone’s stake in Verizon will be spent on upgrading service standards in the company’s five largest European markets.

All trading involves risk. Losses can exceed deposits.

Having had some time to think about what it will do with the money made from selling its position in Verizon, Vodafone has decided to improve its own product. The company will embark on operation ‘Project Spring’ to freshen up its ability to offer the best possible service for mobile device users.

One of the most attractive aspects for Vodafone investors has been the income return coming from the company’s Verizon dividend. The firm will not be able to easily replace this income flow and, in order for stockholders to remain confident in the firm, there will need to be a solid investment plan for how it intends to move forward.

Both northern and central European sales have seen an upturn in returns; however sales in southern Europe remain weak and continue to weigh on the company. Although the board has stated that it sees an improving environment, it could be some considerable time before southern Europe stops feeling like it is in recession.

Vodafone chart

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. 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. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts