Familiar phone connection tone from Vodafone

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Long -term followers from Vodafone It was possible to forgive to feel a touch of Déjà vu while surveying the mobile operator The results of the year are full Last week.

It was particularly important to confirm CEO Margareta della Valley that Vodafone is at the “Point of Deviation”.

This reminded us of how the company claimed in July 2019, then led by Nick Reed, the predecessor of Della Valley, that it had reached a “turning point” in its financial performance.

Or moreover, I suggested the moment in November 2015 when Vittorio Colao, the attractive Read, Vodafone predecessor, suggested to “an important turning point”.

Such compits can be considered unfair. But they only assert how long this company was disappointing investors.

Vodafone’s fortunes are a suitable metaphor not only for Britain companies, but the country as a whole.

The company was born as we know today in 1982 when, as part of its leadership to expand the selection of consumers, former British Prime Minister Margaret Tacker Rakal Electronics, a military radio specialist, was granted two licenses to run what was then called the cell phone networks (the other went to British -owned British -owned British communications).

After being stripped of Vodafone and re -named it, it expanded abroad in the late 1990s during the era of CEO Chris Gent just like Tony Blair, the youngest prime minister in Britain in nearly 200 years, was mobilizing diplomatic circles.

This was a time to report Vodafone’s fortunes. The Aartouch acquisition has covered $ 66 billion, Vodafone in the United States and other major markets, and the purchase of the German mobile operator Mansman, is about $ 180 billion-the largest acquisition by a British company and the largest foreign acquisition of a German company.

Vodafone confirmed as the largest phone operator in the world and the largest company in FTSE 100 index.

That, at the time of writing this report, the most valuable company in FTSE gives you an idea of ​​what happened after that.

From expansion to reduction – And an annual loss to break the record

After years of growing flag in foreign lands, a long period of reduction began under the back of Aaron Sarin’s Gent.

The next contract is distinguished by getting rid of the disposal, decisively in evaluating the pre -acquired assets. Vodafone set another record – this time, unwanted – when, in May 2006, I reported a annual loss of 14.85 billion pounds (20.13 billion dollars at current prices), the largest of which is the United Kingdom’s company (Royal Bank Scotland and BP It is both since the registry was broken).

Vodafone gradually declined from some important markets, most notably the United States, where in September 2013 She sold her share of 45 % in Verizon Wireless for 130 billion pounds. Recently, it came out of Italy – one of its largest markets – and Spain.

There are two main exceptions as Vodafone continued to expand.

The first is Germany, where it was obtained in 2018 The origins of the Liberty Global cable To become the largest cable operator and the second largest player in fixed lines services and wide range of wide range after driving the market, Deutsche Telecom.

The second is the local Vodafone market, the United Kingdom, where it was allowed at the end of last year Its operations with the three UK -owned Hong Kong operationsReducing the number of players on the market from four to three. This shift is expected to be in a market, for many years, which has been placed in low investment returns.

So modern Vodafone is smaller than before – just as the British economy now feels less important around the world than the recent past.

This also means that the company relies more on a few markets.

If the shareholders have not completely benefited from their exposure to Vodafone – the shares have decreased by 40 % over the past five years – they still provide a lot of works for mediators.

The re -purchase program has just completed two billion euros ($ 2.27 billion) and announced last week a new euro system. Investment bankers, who have also enjoyed a lot of fees from Vodafone over the years, hopes that the ongoing review of the European Commission for merger guidelines will lead to more monotheism.

For investors, though, the big question is whether the Della Valley’s confirmation last week has a reflection point of what he justifies.

It can argue, reasonably, that Vodafone is now a simpler and performance that surpasses competitors in the main markets. She can also say, again with some justification, that Vodafone has begun to improve customer experience – which she set as her main priority when he took the position of CEO two years ago.

While it depends greatly on mature European economies, Vodafone also maintains leading market sites in a number of large African markets such as South Africa, Kenya and Mozambique. Africa is currently 20 % of Vodafone’s revenues, but it is expected to grow in importance. Türkiye, where the company is the second largest operator, which now represents about 8 % of the group’s revenues, also provides a lot of promise.

However, Vodafone is still a very frustrating company.

Instead of traditional scales such as operating profits, investors prefer to focus on free cash flow and a confusing measurement called profits before benefits and taxes (profits before benefits, taxes, destruction and firefighting, after rental decades). However, even at this scale, the numbers were back in recent financial years.

There is always something that is in conclusion, whether it is excessive inflation in Türkiye, deletion in Romania, or a change in cable TV contracts in residential blocks in Germany.

The latter, the largest unified market in Vodafone, is more important in determining investor morale towards Vodafone. If the relegation of the new advisor, Fredchiich Mirz, stimulates the German economy, Vodafone should benefit.

But this is a company that has witnessed countless dawn and investors, taking into account its near past, it would be wise to be careful.

Barclays CEO says that the UK government is on the right path and focuses on growth.

CS Venkatakrishnan, CEO of Barclays Group, discusses the global economy, bank business expectations, British economy, merging and purchasing and more than the Barclet Leadership Conference in London.

The United Kingdom is doing “somewhat good” in foreign policy and commercial deals, economists say

Kallum Pickering, chief economist at Peel Hunt, is discussing the recent commercial deals that the United Kingdom agreed with the United States, India and the European Union.

Jonathan Ports says that most British want the United Kingdom and the European Union more pragmatic relationship

Jonathan Ports, professor of economics and public policy at the Faculty of Politics and Economics at Kings College and his colleague in the United Kingdom in the UK in changing Europe, interacts with the emerging details about the UK reset deal.

– Katrina Bishop

Two months later, they are dominated by global tariff fears, stock markets in the United Kingdom returned to Up in May. the FTSE 100 Currently in its course to achieve a profit of about 2.6 % this month, which will be the best performance since January. The more FTSE 250, more than 4 % over the month.

It was also a strong month for sterlingWhich ascended against both the euro and the US dollar. These moves were strengthened during the past week through better retail data than expected, consumer confidence and energy prices, which are scheduled to decrease more than previously thought.

There was also an increase in inflation 3.5 % in April from 2.6 % in MarchInvestors lead to expecting more caution from the Bank of England to reduce interest rates this year – as their prices are generally high news of the local currency.

The final WindWind assets were provided in the UK by The Westminster Trade deal with the White House, A 10 % essential tariff is placed on its exports related to the United States, while most other countries remain mired in negotiations.

Government borrowing costs in the United Kingdom rose to the top of this month, for a step with a large part of the rest of the world. Returning to UK bonds, known as GiltsThey did not change a little this week – but investors are watching A report from the Times Financial The UK’s debt office is escalating to the shorter borrowing in the short term, as the demand for debt fades fades.

– Jenny Reed