Latest news with #MargheritaDellaValle
The Guardian
a day ago
- Business
- The Guardian
Vodafone CEO asked how she sleeps at night by ex-franchisee amid £120m legal action
The Vodafone chief executive has been asked how she sleeps at night by one of the 62 former store owners involved in a £120m legal action that claims the mobile operator 'unjustly enriched' itself at their expense. Donna Watton, one of the group of 62 franchisees that have taken their claim to the high court, challenged Margherita Della Valle at Vodafone's annual general meeting on Tuesday. 'I have a question for the chief executive,' said Watton, speaking at the sparsely attended meeting at Vodafone's headquarters in Newbury. 'I am a Vodafone ex-franchisee, and I am one of the group of 62 suing this company for £120m for what it did to us, and I want to know: Margherita, how do you sleep at night knowing Vodafone's actions left people suicidal, cost them their homes, and left them drowning in debt?' The legal case was launched in December, claiming Vodafone slashed commissions paid to franchisees operating the mobile phone company's retail outlets. Many have claimed the company's actions made them fear they would lose their livelihoods, homes or life savings after running up personal debts of more than £100,000. Jean-François van Boxmeer, the chair of Vodafone leading the meeting proceedings, stepped in to field the question on behalf of Della Valle. He said that it was right he field the question as 'the master of ceremonies here and also protecting the sleep of Margherita'. 'I understand your question and I am not saying I do not feel the pain that you might [be going] through,' he said. 'You are referring to a case which is a commercial case between Vodafone UK and a group of franchisees in the UK. That case has been through a mediation that has been unfortunately unsuccessful. It is now a matter in the hands of court. You will allow us not to comment on procedures that are in court. I will not in this general assembly make further comments on what is now in the hands of courts.' He said that Vodafone remains open to further mediation, a process that ended without resolution in May. Vodafone, which says the legal claim is worth £85.5m, has consistently said that it refutes the claims made by the franchisees in their legal action. Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion One shareholder, who said they had travelled a great distance to attend the Newbury meeting, challenged why Della Valle was too 'shy' to address attendees. 'I don't come for the sandwiches, I come to engage with the board and management,' he said. 'I've gone to a lot of AGMs this year. [At] the other AGMs the chief executives were not so shy that we weren't addressed. I've come a long way, I've probably used a lot of petrol to come here. Surely as one of the seven shareholders that have turned out I deserve some sort of address from the chief executive. Is there nothing good to report, is there nothing bad to report?' Van Boxmeer responded that Della Valle would only offer replies to 'very concrete questions relating to how the business is going'.
Yahoo
6 days ago
- Business
- Yahoo
Three brand to be axed for business customers following £16.5bn Vodafone merger
The Three brand is to be axed for business customers following the completion of the mobile operator's £16.5 billion UK merger with rival Vodafone at the end of May The combined group's chief executive Margherita Della Valle said the Three Business's customer base, which past the one million connections mark earlier this year, was much smaller than Vodafone's. She said the brand will be phased out over the course of the year. However, she insisted the company was committed to a 'multi-brand' strategy for consumers for the foreseable future with both names operating side by side in the UK. 'We see it as a positive,' she added. The merger between Vodafone UK and Three UK, creating VodafoneThree, was completed in May 2025 with a combined customer base of almost 29 million, making it the leading player in the UK. VodafoneThree, led by CEO Max Taylor, has pledged to invest £11 billion over the next decade to improve the UK's 5G infrastructure and network capabilities. Della Valle said integration was going well after the two businesses 'hit the ground running' in June. She said Three customers had benefitted from 4G speeds up to 40% faster after gaining access to Vodafone's network. The combining of the two networks to create the 'Nation's Network' will lead to the disappearance of 16.5 million sq km of 'not spots' - ten times the size of London - where customers previously could not get service. Announcing first quarter results for the three months to end June Vodafone revealed a 3.9% increase in revenues to €9.4 billion (£8.15 billion) Service revenue was up by 5.3% to €7.9 billion. The completion of the long-awaited merger with Three drove total revenue in the UK up 14.5 per cent year on year, to €1.93 billion. EBITDA earnings rose by 4% to €2.7 billion while operating profit fell by a third to €1 billion, largely because the previous year was boosted by the sale of a stake in Indian mobile tower installation company Indus Towers. Della Valle said: Today, we reiterate our full year guidance of growth in profit and cash flow. After two years of transformation and change, Vodafone is now well positioned for multi-year growth across both Europe and Africa." Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
04-07-2025
- Business
- Yahoo
Prediction: in 12 months the recovering Vodafone share price could turn £10,000 into…
The Vodafone (LSE: VOD) share price has been spreading misery for years. It's been one long tale of woe, falling from a dotcom boom peak of more than 500p to a miserable low of 63p in February 2023. I've been amazed the telecoms stock has managed to cling on to its FTSE 100 listing. That said, the late-90s tech boom was clearly overcooked, and Vodafone did brilliantlly just to survive the crash. It's also churned out billions in dividends over the years. But I never saw that as proper compensation for the relentless capital destruction. The yield was so high largely because the shares kept collapsing. Under CEO Margherita Della Valle, appointed in April last year, things may finally be turning. Vodafone is up almost 15% over 12 months, with most of the gain coming in the last quarter. It's now trading around 80p. That's still volatile, but so is everything in today's uncertain market. Full-year results published on 20 May hinted at a business finding its feet. Revenue rose 2% to €37.4bn, with service revenue up 5.1%. The big drivers were Africa and Turkey, up 11.3% and 83.4%, respectively. A €4.5bn impairment charge pushed the group to a €400m operating loss, but the board nonetheless confirmed another €2bn share buyback. Crucially, the reshaped group now leans more heavily towards high-growth markets, which produce two-thirds of its adjusted free cash flow. As Della Valle said: 'Vodafone has changed.' The dividend is another story. It was slashed by 40% in 2019 to nine eurocents per share, stayed flat for five years, then halved again to just 4.5 cents in 2025. For anyone holding the stock for income, it's been grim. The trailing yield is still a decent 4.75%, covered 1.7 times by earnings. Forecasts show the dividend dipping slightly to 4.2 cents in 2026, then nudging higher to 4.3 cents the year after. By 2027, dividend cover is expected to hit 2.1, so there's a chance the payout finally stabilises. A price-to-earnings ratio of 11.7 suggests there may be value here. The group's debt pile is still heavy though, falling slightly to €31.8bn in September 2024 thanks to asset sales. But that's still a long way from light. Capital expenditure will also stay high. On 2 June, Vodafone UK and Three UK confirmed they'd spend £1.3bn in the first year of their merger, now branded VodafoneThree. While the tie-up should deliver £700m in annual cost and capex savings within five years, that's a long wait. Return on capital employed is just 0.6%, which reflects years of underperformance. According to 14 analyst forecasts, the median one-year Vodafone stock price target is 84.5p. If correct, that's a rise of just under 5%. With the yield, the total return could hit 9.5%. If that plays out, £10,000 would turn into £10,950. It's a start. But it's hardly thrilling. And forecasts are just that. A lot can go wrong. I've avoided Vodafone for decades and done well as a result. For the first time, I'm tempted. But on balance, I still don't think it's worth considering today. I can see far better growth plays across the FTSE 100 and FTSE 250, and even more tempting dividend stocks. The post Prediction: in 12 months the recovering Vodafone share price could turn £10,000 into… appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK has recommended Vodafone Group Public. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
30-06-2025
- Business
- Business Wire
Vodafone and AST SpaceMobile Choose Luxembourg as Joint Venture Headquarters to Drive European-Wide Space-Based Mobile Broadband Coverage
MIDLAND, Texas & NEWBURY, United Kingdom--(BUSINESS WIRE)--Vodafone Group and AST SpaceMobile Inc. ('AST SpaceMobile') (NASDAQ: ASTS) today announced that their new joint venture satellite company, SatCo, will be headquartered in Luxembourg, creating a European sovereign integrated satellite service. AST SpaceMobile is building the first and only space-based cellular broadband network accessible directly by everyday smartphones, designed for both commercial and government applications. Luxembourg's strong digital credentials and strategic location provide SatCo with the ideal platform from which to exclusively distribute AST SpaceMobile's broadband satellite services to European mobile network operators under a single turnkey arrangement. SatCo's wholesale offering of direct-to-device mobile broadband satellite services, which complement terrestrial networks, has generated expressions of interest from network operators in 21 EU member states, as well as in other European markets. Commercial services are expected to begin in 2026. Vodafone and AST SpaceMobile are in close contact with the Luxembourg Government, key European policymakers, EU Member States, and industry stakeholders to advance national and European digital sovereignty by promoting a cohesive space strategy. SatCo will forge private and public sector partnerships that will position Europe as a leader in the provision of direct-to-mobile space-based broadband connectivity. This will provide the region with a secure and resilient digital communications infrastructure for use in any location, including mountains or at sea, at any time. Together, the companies' joint efforts have already led to a series of groundbreaking achievements in direct-to-device connectivity with everyday smartphones, including the world's first European space-based mobile video call to an unmodified phone from the UK. In addition, the companies, using AST SpaceMobile's space-based mobile broadband network, have demonstrated 4G and 5G capabilities and achieved download speeds of over 20 Mbps to unmodified phones on a 5 MHz channel. The 2025 next generation satellites soon to be launched will enable peak data rates of 120 Mbps. Margherita Della Valle, CEO of Vodafone, stated: "This is an important initiative for Europe. Our service will ensure that European citizens, businesses, and governments enjoy uninterrupted, ubiquitous mobile broadband connectivity across the whole continent. Europe can take the lead in new direct-to-mobile broadband technology.' The planned establishment of SatCo was announced in March this year by Vodafone and AST SpaceMobile. This unique solution is being led by Europe, from Luxembourg, and will benefit the EU's Digital Decade 2030 targets. Mr. Lex Delles, Minister of the Economy, SME, Energy and Tourism of Luxembourg stated: 'The establishment of SatCo's headquarters in Luxembourg further reinforces the key role of our country as a hub to deploy innovative solutions serving the whole EU single market and its citizens. I welcome to Luxembourg AST SpaceMobile, a leading international player joining our thriving space sector, and I am glad that this project continues to strengthen the long-standing relationship between Vodafone and Luxembourg.' Ms. Elisabeth Margue, Minister delegate to the Prime Minister for Media and Connectivity said: 'Assuring ubiquitous coverage of mobile broadband connectivity for all users in Luxembourg and in areas of Europe is a key objective for the Luxembourg Government. As such, we welcome the decision of Vodafone and AST SpaceMobile to choose Luxembourg as their European headquarters, enriching the connectivity ecosystem by developing innovative services based on terrestrial and satellite infrastructure. We are looking forward to the local deployment and leverage of competencies and skills by the new entity, enabling a commercially successful service deployment on a worldwide basis.' 'With SatCo now based in Luxembourg, Vodafone and AST SpaceMobile are strengthening Europe's position in direct-to-mobile satellite services and advancing digital independence,' said Abel Avellan, Founder, Chairman, and CEO of AST SpaceMobile. 'This joint venture supports European digital sovereignty by creating a unified platform to deliver satellite connectivity across the continent. Together, we are building secure, resilient cellular broadband infrastructure to serve Europe's connectivity needs—anywhere, anytime.' The Luxembourg-headquartered venture will deploy a small network of earth stations that integrate with operators of existing 4G/5G terrestrial networks, providing secure backhaul links, as well as extended coverage across Europe from the AST SpaceMobile satellite constellation in low Earth orbit. This will enable users to switch automatically between space and land-based networks. About Vodafone Vodafone is a leading European and African telecoms company. We serve over 340 million mobile and broadband customers, operating networks in 15 countries with investments in a further five and partners in over 40 more. Our undersea cables transport around a sixth of the world's internet traffic, and we are developing a new direct-to-mobile satellite communications service to connect areas without coverage. Vodafone runs one of the world's largest IoT platforms, with 205 million IoT connections, and we provide financial services to around 88 million customers across seven African countries – managing more transactions than any other provider. From the seabed to the stars, Vodafone's purpose is to keep everyone connected. For more information, please visit follow us on X at @VodafoneGroup or connect with us on LinkedIn at About AST SpaceMobile AST SpaceMobile is building the first and only global cellular broadband network in space to operate directly with standard, unmodified mobile devices based on our extensive IP and patent portfolio, and designed for both commercial and government applications. Our engineers and space scientists are on a mission to eliminate the connectivity gaps faced by today's five billion mobile subscribers and finally bring broadband to the billions who remain unconnected. For more information, follow AST SpaceMobile on YouTube, X (Formerly Twitter), LinkedIn and Facebook. Watch this video for an overview of the SpaceMobile mission. Forward Looking Statements This communication contains 'forward-looking statements' that are not historical facts, and involve risks and uncertainties that could cause actual results of AST SpaceMobile to differ materially from those expected and projected. These forward-looking statements can be identified by the use of forward-looking terminology, including the words 'believes,' 'estimates,' 'anticipates,' 'expects,' 'intends,' 'plans,' 'may,' 'will,' 'would,' 'potential,' 'projects,' 'predicts,' 'continue,' or 'should,' or, in each case, their negative or other variations or comparable terminology. These forward-looking statements involve significant risks and uncertainties that could cause the actual results to differ materially from the expected results. Most of these factors are outside AST SpaceMobile's control and are difficult to predict. Factors that could cause such differences include, but are not limited to: (i) expectations regarding AST SpaceMobile's strategies and future financial performance, including AST's future business plans or objectives, expected functionality of the SpaceMobile Service, anticipated timing of the launch of the Block 2 BlueBird satellites, anticipated demand and acceptance of mobile satellite services, prospective performance and commercial opportunities and competitors, the timing of obtaining regulatory approvals, ability to finance its research and development activities, commercial partnership acquisition and retention, products and services, pricing, marketing plans, operating expenses, market trends, revenues, liquidity, cash flows and uses of cash, capital expenditures, and AST SpaceMobile's ability to invest in growth initiatives; (ii) the negotiation of definitive agreements with mobile network operators relating to the SpaceMobile Service that would supersede preliminary agreements and memoranda of understanding and the ability to enter into commercial agreements with other parties or government entities; (iii) the ability of AST SpaceMobile to grow and manage growth profitably and retain its key employees and AST SpaceMobile's responses to actions of its competitors and its ability to effectively compete; (iv) changes in applicable laws or regulations; (v) the possibility that AST SpaceMobile may be adversely affected by other economic, business, and/or competitive factors; (vi) the outcome of any legal proceedings that may be instituted against AST SpaceMobile; and (vii) other risks and uncertainties indicated in the Company's filings with the Securities and Exchange Commission (SEC), including those in the Risk Factors section of AST SpaceMobile's Form 10-K filed with the SEC on March 3, 2025. AST SpaceMobile cautions that the foregoing list of factors is not exclusive. AST SpaceMobile cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date made. For information identifying important factors that could cause actual results to differ materially from those anticipated in the forward-looking statements, please refer to the Risk Factors in AST SpaceMobile's Form 10-K filed with the SEC on March 3, 2025. AST SpaceMobile's securities filings can be accessed on the EDGAR section of the SEC's website at Except as expressly required by applicable securities law, AST SpaceMobile disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.
Yahoo
08-06-2025
- Business
- Yahoo
Forecast: in 1 year, the Vodafone share price could turn £1,000 into…
The Vodafone (LSE:VOD) share price is off to a decent start in 2025, climbing by almost 12%, putting it ahead of its parent index. That's certainly a welcome change of pace compared to the downward trajectory the business has been on since early 2022. And looking at its latest results, this performance is also backed up by improving financials. Operations in Africa continue to grow rapidly by double-digits as the adoption of its mobile payment solution, M-PESA, captures further market share. Growth in the UK is now set to reignite thanks to the recently completed merger with Three, and performance across Europe's also bouncing back (with the exception of Germany). At the same time, higher free cash flow generation, along with non-core disposals, has paved the way for further debt reduction, improving the health of the balance sheet. And when excluding non-cash impairment charges, operating profits during the 12 months leading to March 2025 jumped 12% from €3.67bn to €4.1bn. Needless to say, this is all pretty encouraging news. And it seems CEO Margherita Della Valle's efforts to right the ship are finally starting to bear fruit. So if this turnaround continues, how much money could investors make from the recovery by buying £1,000 worth of shares today? The progress made so far has helped boost institutional analyst sentiment towards this business. While most continue to be cautious with a Hold recommendation, like the team at Barclays, some are more bullish. For example, UBS sees the fair value of Vodafone shares at 120p by this time next year if the firm can achieve its expected post-merger with Three operational efficiencies. JP Morgan seems to have drawn a similar conclusion with a price target of 110p, citing the incoming cost savings from the ongoing restructuring and expected performance boost in the UK market. If these projections prove accurate, a £1,000 investment today could be worth up to £1,564 within the next 12 months. As previously mentioned, not every institutional analyst is as optimistic as UBS or JP Morgan. Going back to Barclays, the banking giant has highlighted its concerns about competitive pressures in Germany – a fear shared by Goldman Sachs. According to their analysis, the fair value of the Vodafone share price is between 75p and 85p, which is roughly in line with where the stock currently trades. So which analysts should investors listen to? The group's weak performance in Germany is problematic. Vodafone has been losing market share for a number of years. Competitors have been offering cheaper alternatives at a seemingly higher quality based on customer reviews. Under Della Valle, client attrition in Germany has slowed (excluding the recent regulatory changes surrounding bulk TV contracts). Management's now allocating capital to improve the quality of customer services as well as accelerate the rollout of 5G & Fibre in the pursuit of boosting its net promotor score. On paper, this strategy sounds sensible. But whether it can be successfully executed remains a big question mark. And with 40% of underlying earnings stemming from this market, a failure to get Germany back on track could significantly adversely impact the business even if other markets continue to perform well. With that in mind, I'm leaning more towards the side of caution and keeping this business on my watchlist. The post Forecast: in 1 year, the Vodafone share price could turn £1,000 into… appeared first on The Motley Fool UK. More reading 5 Stocks For Trying To Build Wealth After 50 One Top Growth Stock from the Motley Fool Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended Barclays Plc and Vodafone Group Public. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors. Motley Fool UK 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
