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Finanacial Analysis of Vodafone Plc 2012

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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
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