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Will Vodafone's first-half figures impress?

Markets are expecting a return to form from Vodafone’s looming figures.

All trading involves risk. Losses can exceed deposits.
Vodafone logo
Source: Bloomberg

On Tuesday 11 November Vodafone is due to release its first-half figures to the markets. The adjusted earnings per share is due to come in at $0.042 higher than the last six month’s $0.027. Sales are due to drop from $21.582 billion to $20.751 billion, and more importantly the company is expected to see a pre-tax profit of $1.572 billion after March’s loss of $6.784 billion.

The lines between cable, satellite, mobile and online companies have become increasingly blurred as the crossover dissemination of content to users continues to evolve with smarter and smarter handheld devices. In recognition of this, the relationship between BSkyB and Vodafone has become increasingly cosy. Vodafone has offered users access to Sky Sports on its mobiles and it is expected that in the coming days this will be expanded. It is also expected that a deal to access Sky’s NowTV will soon be announced. This would see increased content available to Vodafone users through 13 new channels and a backlog of TV box sets.

At the moment the relationship between BSkyB and Vodafone looks to be revolving around synergies, but with the cash stockpile still left over from the Verizon separation this relationship has the ability to take the next step.

Shares have found the 210p level, both support back in April and resistance in both May and September. It will be interesting to see if these half-year figures are enough to break back above this level.

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