Background of Vodafone Group
Vodafone Group plc is a multinational telecommunications company. The company’s registered office is located in Newbury, Berkshire, England and its global headquarters are based in London, England.
The company predominantly operates services in the regions of Asia, Africa, Europe, and Oceania.
Among mobile operator groups globally, Vodafone ranked 4th (behind China Mobile, Bharti Airtel and Vodafone Idea, of which the Group owns a 45% stake) in the number of mobile customers (313 million) as of 2018.
The company has a history dating back to 1982 with the establishment of the Racal Strategic Radio Ltd subsidiary of Racal Electronics, the UK’s largest maker of military radio technology, which formed a joint venture with Millicom called ‘Racal’, and evolved into the present day Vodafone.
On 16 September 1991, Racal Telecom demerged from Racal Electronics as Vodafone Group.
The company went on to expand its portfolio in 1996 when it acquired the two-thirds of Talkland it did not already own for £30.6 million.
On 19 November 1996, in a defensive move, Vodafone purchased Peoples Phone for £77 million, a 181 store chain whose customers were overwhelmingly using Vodafone’s network.
In a similar move the company acquired the 80% of Astec Communications that it did not own, a service provider with 21 stores.
On 17 December 2001, Vodafone introduced the concept of “Partner Networks“, by signing TDC Mobil of Denmark. The new concept involved the introduction of Vodafone international services to the local market, without the need of investment by Vodafone.
The concept would be used to extend the Vodafone brand and services into markets where it did not have stakes in local operators. Vodafone services would be marketed under the dual-brand scheme, with the Vodafone brand being added at the end of the local brand.
On 1 December 2011, the company acquired the Reading based Bluefish Communications Ltd, an ICT consultancy company. The acquired operations formed the nucleus of a new Unified Communications and Collaboration practice within its subsidiary Vodafone Global Enterprise, which focused on implementing strategies in cloud computing, and strengthened its professional services offering.
Vodafone has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. It has a market capitalisation of approximately £52.5 billion, the eighth-largest of any company listed on the London Stock Exchange. The company has a secondary listing on NASDAQ.
Vodafone Group Growth Driver
The Vodafone Group is one of the world’s leading telecoms and technology service providers, with extensive experience in connectivity, convergence and the Internet of Things, as well as championing mobile financial services and digital transformation in emerging markets.
Vodafone Group has mobile operations in 24 countries, partners with mobile networks in 42 more, and fixed broadband operations in 19 markets.
As of 31 December 2019, Vodafone Group had approximately 625 million mobile customers, 27 million fixed broadband customers and 22 million TV customers, including all of the customers in Vodafone’s joint ventures and associates.
In terms of its consumer portfolio, Vodafone provides a wide range of mobile services, enabling customers to call, text and access data whether at home or travelling abroad.
The company’s fixed line services include broadband, TV offerings and voice. Other value added services include money mobile services through M-Pesa, its customer internet of Things proposition “V by Vodafone” as well as security and insurance products.
In terms of its business portfolio, Vodafone offers mobile, fixed and a suite of converged communication services to support the growing needs of its enterprise customers who range from small businesses to large multinational corporates.
To this end, the company offers multiple services through its Internet of Things (‘IoT’) connections, Cloud & Security and Carrier, which includes international voice, IP transit and messaging.
Added to this, the company rents capacity to mobile virtual network operators as well as offer services to operators outside its footprint through its partner markets.
Vodafone’s fixed Next Generation Network (‘NGN’) footprint has continued to expand and now covers 122 million marketable households in Europe. Within this, 54 million households are on the company’s fully owned network including Vodafone Ziggo in the Netherlands, and a further 9 million households are covered through strategic partnership agreements where the company has attractive commercial/access term.
Vodafone Group Investor Tip
Vodafone Group plc trades on the London Stock Exchange (LSE) where investors can buy shares under the stock symbol – VOD.
Data from the company’s 2025 financial analysis of its fiscal first quarter results shows Group revenue grew by 3.0% to €45.0 billion, supported by improving commercial momentum in Europe.
Group organic service revenue increased by 0.8% to € 37.9 billion (FY19: € 36.5 billion), with improved commercial performance across all major markets.
Adjusted EBITDA increased by 2.6% to € 14.9 billion (FY19: € 13.9 billion). This growth was the result of the success of the company’s cost transformation agenda, alongside improving commercial momentum and organic service revenue growth.
This enabled the company to deliver a fifth consecutive year of adjusted EBITDA margin expansion, increasing to 33.1% in FY20, from 28.3% in FY15. Free cash flow grew by 12.2% to €4.9 billion, supported by disciplined capital management.
The company announced dividends per share of 9.00 eurocents. Vodafone delivered a good financial performance – growing revenue, adjusted EBITDA and free cash flow – whilst building strong commercial momentum through the year and executing at pace on its strategic priorities.
All in all, this sound move towards driving positive consumer sentiment coupled with the company’s strong financial performance will result in healthy dividends and a growing share price for investors who choose to purchase shares today, securing a solid buy-in in 2025 and in the future.
The company has also continued to invest in its fixed and mobile Gigabit network infrastructure and digital services, to provide faster speeds for its customers, as well as successfully managing the recent surges in demand. The services Vodafone provides are more important than ever and the company is committed to playing a key role in society’s recovery to the ‘new normal’.
To this end, Vodafone teams throughout its markets have worked tirelessly to deliver its five-point plan and to support all the communities in which it operates. So far, the actions the company has taken have totalled donations of goods and services of approximately € 100 million, reaching 78 million customers, and doing much for positive consumer and investor sentiment.
In light of the current conditions across its markets, the company is accelerating in focused areas of its strategic priorities to support societies in their economic recovery and return to a state of economic resilience.
Vodafone Group Shareholders
Renaissance Technologies LLC, Altrinsic Global Advisors LLC, ACR Alpine Capital Research LLC
Sector
Communications
Industry
Telecom
Sub Industry
Telecom Carriers
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FAQ
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Yes, you can.
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