1238 GMT - Vodafone's absence of any new profit warnings is good news, especially as the plan to halve the dividend in the year to March 2025 is already well trailered, AJ Bell Investment Director Russ Mould writes in a research note. "While painful, the cut looks a sensible move. It will free up more than EUR1.0 billion a year in cash flow and enable Vodafone to either further reduce debt or invest in its core operations to maintain and enhance their competitive position," Mould says. The U.K. telecommunication company will benefit from changes in its group structure as the business will look simpler, and the balance sheet will carry less debt to improve its long-term growth potential, Mould says. Shares are up 3.4% at 72.34 pence. (najat.kantouar@wsj.com)
(END) Dow Jones Newswires
May 14, 2024 08:38 ET (12:38 GMT)
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