Vodafone to Separate European Tower Infrastructure Unit; 1Q Revenue Fell
July 26 2019 - 2:52AM
Dow Jones News
By Adria Calatayud
Vodafone Group PLC (VOD.LN) said Friday that it will separate
its European tower infrastructure business and consider
monetization options, including via a potential initial public
offering, as it posted a 2.3% fall in first-quarter revenue.
The U.K. telecommunications said its European tower
infrastructure into a new organization, which will be operational
by May 2020. The new business will comprise the company's 61,700
towers in ten markets. Preparations are under way for a variety of
monetization alternatives to be executed over the next 18 months,
including a potential IPO, Vodafone said.
Proceeds from the separation will be used to reduce the group's
debt, Vodafone said. The company said the separation will depend on
market conditions.
Separately, Vodafone said revenue for the quarter to June 30
fell to 10.65 billion euros ($11.87 billion) from EUR10.90 billion
in the year-earlier period due to foreign-exchange movements, and
backed its guidance for fiscal 2020
Quarterly organic service revenue--a closely-watched metric for
Vodafone--was down 0.2%, following a 0.7% decline in the previous
quarter, the company said.
The company confirmed that it is confident in delivering
adjusted earnings before interest, taxes, depreciation and
amortization of between EUR13.8 billion and EUR14.2 billion and
free cash flow, excluding spectrum costs, of at least EUR5.4
billion in fiscal 2020.
Write to Adria Calatayud at
adria.calatayudvaello@dowjones.com
(END) Dow Jones Newswires
July 26, 2019 02:37 ET (06:37 GMT)
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