Preview

Finanacial Analysis of Vodafone Plc 2012

Best Essays
Open Document
Open Document
3046 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Finanacial Analysis of Vodafone Plc 2012
Financial Analysis of
Vodafone Group Plc
2012
AC4907 Assignment
This is a financial analysis of Vodafone Group Plc based on the group’s annual report for the financial year ended 31st
March 2012.
Shane Gaughan
11/25/2012
Student ID 0173061
Lecturer: Orla Lenihan

Introduction
Vodafone Group Plc who in 1985 made its first mobile telephone call is today a global communications company serving over 404 million customers in more than 30 countries across 5 continents in which they operate in. In 1991 Vodafone enabled the first international mobile roaming call and to support that Vodafone have partners in a further 40 countries which allow it to extend its network beyond its equity interests. Vodafone is one of the world’s largest retailers with around 14,000 stores and the brand is rated as the most valuable telecoms brand in the world valued at $30bn, brand rating AAA+ (Brand Finance).Vodafone’s headquarters is in Paddington,
London and employs over 86,000 worldwide. Vodafone Group Plc (VOD) is listed on the London
Stock Exchange and the NASDAQ (ADR) in New York and has a current share price of 158.70 as of
25/11/2012 on the London Stock Exchange (LSE).

Highlights 2012
• Revenue for 2012 was over 46 billion sterling and Operating profit 11.5 billion sterling
• Gross Savings of 12% on European costs over two years
• One supply chain with £4.8bn in cumulative saving over 6 years
• Dividends per share growth of 7%
• Gained market share in 5/7 markets
• Service revenue growth of 15%
• Free Cash flow of £6.1bn
• Share £6.8bn buyback programme nearing completion
• Special Dividend 4p per share from Verizon Wireless 44% stake
• EPS 13.74 pence basic and 13.65 pence diluted (special dividend excluded)
• Dividend growth forecasted at 7% for 2013
• Consensus among 35 investment analyst is that Vodafone will outperform market
• 89% of European Population now covered by Vodafone 3G
• Data user grown to 108 million and data revenue by 22%
•


Bibliography: Vodafone Group Plc (2012) ‘Vodafone Annual Report 2012’ [online] available: http://www.vodafone.com/content/dam/vodafone/investors/annual_reports/Vodafone_Annual_Re port_12.pdf [accessed 10/10/2012] Telefonica SA (2012) ‘Annual Report’ [online] available: Financial Times (2012) Vodafone Group Plc VOD Group Performance FT.com, illus, http://markets.ft.com/research/Markets/Tearsheets/Forecasts?s=VOD:LSE [accessed 16/11/2012] Financial Times (2012) Vodafone Group Plc VOD Group Performance FT.com, illus http://markets.ft.com/research/InteractiveChart?symbol=281891&options= [accessed 16/11/2012] Moody’s (2012)’ Long Term Rating Scale, Rating Scale and Definitions’ [online] available: http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004 [accessed 17/11/12] Standard & Poor’s (2012) ‘Ratings Definitions’ [online]: available: Fitch (2012) ‘Definition of Ratings and other forms of opinion’ [online] available: http://www.fitchratings.com/web_content/ratings/fitch_ratings_definitions_and_scales.pdf [accessed 17/11/12] Brand Finance (2012) ‘Top 500 Telecom Brands 2012’ [online] available: http://brandirectory.com/league_tables/table/top-500-telecom-brands-2012 [accessed 17/11/12] Davy Wealth Management Ireland (2012
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Ll Bean Swot Analysis
    • 1393 Words
    • 6 Pages

    Ll Bean Swot Analysis

    over 70 years and has a presence in over 100 countries through over 13,000 retail outlets…

    • 1393 Words
    • 6 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Unit 4 Business Communication P1 M1
    • 883 Words
    • 5 Pages

    Unit 4 Business Communication P1 M1

    Telephone - Vodaphone uses there client database to access their mobile numbers which the vodaphone call center uses to call and text customers about current offers and details etc. They gather the information from marketing to advice the customers which an internal source but for vodaphone to require clients details the client must give them to vodaphone themselves so that is an external source. The purpose is to raise customers awareness of what the latest deals that vodaphone are offering.…

    • 883 Words
    • 5 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    btec level 3 business
    • 928 Words
    • 4 Pages

    btec level 3 business

    Since the company started it has grown to having 750 stores globally along with 75,389 Employees. Company found in countries all over the globe.…

    • 928 Words
    • 4 Pages
    Powerful Essays
    Read More
  • Good Essays

    P1 Unit 3 Business Btec
    • 1364 Words
    • 6 Pages

    P1 Unit 3 Business Btec

    It owns and works networks in more the 30 different countries and also has partner networks in more than 40 other countries.…

    • 1364 Words
    • 6 Pages
    Good Essays
    Read More
  • Powerful Essays

    Strategic Evaluation Consultation Document For EasyJet
    • 4697 Words
    • 16 Pages

    Strategic Evaluation Consultation Document For EasyJet

    Listed on the London Stock Exchange and is a constituent of FTSE 250 with 2011’s revenue reached 3,452 million GBP, revenue 4.98 p/ASK, 15% increased from 2010.…

    • 4697 Words
    • 16 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Financial Analysis of British Airways
    • 4263 Words
    • 18 Pages

    Financial Analysis of British Airways

    trading. In addition there was a general economic downturn and ‘foot and mouth ' disease in…

    • 4263 Words
    • 18 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Estee Lauder Case
    • 449 Words
    • 2 Pages

    Estee Lauder Case

    Owns 29 well known brands and market share in 140 countries. They have strong base which can give a strategic advantage for expansion.…

    • 449 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Aims and objectives of oxfam and vodafone
    • 1275 Words
    • 6 Pages

    Aims and objectives of oxfam and vodafone

    Vodafone was responsible for the UK's first mobile call, just after midnight on 1 January 1985. Within 15 years, they were the largest company in Europe.Vodafone was launched on 1 January 1985 under the new name, Racal-Vodafone (Holdings) Ltd, with its first office based in the Courtyard in Newbury, Berkshire, and shortly thereafter Racal Strategic Radio was renamed Racal Telecommunications Group Limited. On 29 December 1986, Racal Electronics bought out the minority shareholders of Vodafone for GB£110 million; and Vodafone became a fully owned brand of Racal. In September 1988, the company was again renamed Racal Telecom. On 26 October 1988, Racal Telecom, majority held by Racal Electronics; went public on the London Stock Exchange with 20% of its stock floated. The successful flotation led to a situation where the Racal's…

    • 1275 Words
    • 6 Pages
    Good Essays
    Read More
  • Powerful Essays

    Vodafone Equity Valuation
    • 4057 Words
    • 17 Pages

    Vodafone Equity Valuation

     Includes Investment highlights, analyst opinion and investment recommendation supported by strategic analysis of VOD.L and the Telecommunications sector and a comprehensive valuation based on DCF, multiple and DDM analysis.…

    • 4057 Words
    • 17 Pages
    Powerful Essays
    Read More
  • Good Essays

    Vodafone Strategic Plan
    • 1329 Words
    • 6 Pages

    Vodafone Strategic Plan

    Vodafone is generally subject to regulations governing the operation of its business activities. Such as industry specific laws and regulations covering telecommunications services and general competition (antitrust) laws applicable to all activities. Most member states of the EU have now implemented the EU Regulatory…

    • 1329 Words
    • 6 Pages
    Good Essays
    Read More
  • Powerful Essays

    Vodafone Public Relation Management
    • 3325 Words
    • 14 Pages

    Vodafone Public Relation Management

    This handbook gives an insight into the PR strategies adopted by Vodafone Essar. Vodafone Essar is a mobile service provider which launched in India in September, 2007. It was previously known as Max Touch, Orange and Hutch.…

    • 3325 Words
    • 14 Pages
    Powerful Essays
    Read More
  • Better Essays

    Vodafone
    • 1051 Words
    • 5 Pages

    Vodafone

    First, we will talk about technological factor. New technology for mobile broadband which is called Long Term Evolution (LTE). It is one of the newest technologies that telecom company exploring to improve services for their customers. LTE delivers very fast data speeds – up to 100 megabits per second download and 50 megabits per second upload, faster than most home broadband services. (Vodafone, 2011) The coverage and signal stability are the point that may impact Vodafone. According to this two points, Vodafone and O2 make one LTE network in UK. They will share 18,500 masts to provide access to the latest 4G services and extend both 2G and 3G…

    • 1051 Words
    • 5 Pages
    Better Essays
    Read More
  • Powerful Essays

    Brand Element
    • 2318 Words
    • 10 Pages

    Brand Element

    Vodafone India has an integrated marketing strategy to ensure that they reach the maximum customer base and provide a number of touch points for the user. The sales and distribution of Vodafone products is done through their dedicated outlets as well as other outlets, small shops and stores. Vodafone has set up similar format Vodafone stores all over India to give their consumers a seamless and coherent experience wherever they maybe. At the same time a number of mini stores ensure that the customers have more number of places to resolve their minor problems and enquiries. These also provide a venue for the customers to settle their bill dues immediately. Vodafone India also pushes its sim cards through general retailers and pays them a small margin on the sale of each sim card. Post paid consumers are given offers and upgrade schemes to ensure that the company maintains a relationship with them. Thus the sales and distribution aspects of Vodafone in India are taken…

    • 2318 Words
    • 10 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Markt Structure MTN And Vodacom
    • 1099 Words
    • 6 Pages

    Markt Structure MTN And Vodacom

    This is due to the fact the MTN and Vodacom were the only two mobile providers from 1994-2001, no other competition.…

    • 1099 Words
    • 6 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Vodafone Turns East
    • 2878 Words
    • 12 Pages

    Vodafone Turns East

    In 2001, China’s entry in WTO let Vodafone to expand forming an equity alliance with CMHK , investing US $ 2,5 billion in the purchase of 2,19% stake from CMHK. This alliance offered to CMHK the learning how mobile phone standards were regulated worldwide and the roles of international trade. Whereas Vodafone’s superiority is summed up to kea technologies, resources, telecommunication licenses and network infrastructure, creating a powerful competitive advantage. While Vodafone grew steadily in Chinese market, in 2004 it formed a partnership with SmarTone , Hong Kong’s leading mobile operator in multimedia services, which rebranded its name to SmarTone-Vodafone allowing Vodafone to have presence in Hong Kong, too.…

    • 2878 Words
    • 12 Pages
    Good Essays
    Read More

Related Topics