Vodafone, the British telecommunication giant has completed its two-year spending plan that has amounted to tens of billions of dollars. It has been upgrading operations around the world, mainly Europe, where it generates over two-thirds of its overall sales. This gargantuan spending spree has paid off as the firm reported better-than-expected revenue and yet another quarter of improved sales. Vodafone’s organic service growth has grown at a rate of 2.2% despite a decline in the UK of 3.2% due to unexpected challenges with its new billing system.
As the world’s second largest mobile carrier after China Mobile Ltd the company has focused on improving its global influence in recent years, a move which was welcomed by investors and analysts at Wismuller Gunter. “Telecoms companies are investing huge sums into new technology such as 4g and 5g and we are seeing reforms on roaming charges in Europe, this is providing plenty of opportunity for our investors in this sector. The European Telecoms market is stable and beating expectations and we feel there is further upside.” Senior analyst at Wismuller Gunter.
In recent years, Vodafone (vodafone.com) has plowed billions of dollars into its European operations to jump-start its performance in the continent. It has bought up fixed-telecom assets, rolled out fiber-optic cable and upgraded wireless network speed. Revenue excluding handset sales, currency movements and mergers or acquisitions a key gauge of performance in the telecom sector rose 2.2% in the three months ended June 30, helped by particularly strong growth in the group’s Africa, Middle East and Asia Pacific business.
The company campaigned for the U.K. to remain in the European Union and has been quoted as saying it would consider moving its headquarters out of the country after Britain’s vote to leave, although it has said it is too early to make that decision.
Vodafone was founded in the UK in the 1980s but many of its customers, employees and suppliers are based in Europe, while a significant amount of its earnings are generated on the continent.
About Wismuller Gunter
Wismuller Gunter (wismullergunter.com) is a Global Wealth Management Specialist currently trading over $750 million in assets with operations throughout Europe and Asia. The company excels in investment banking, mergers and acquisitions, fund management and private equity.