Costs will remain Vodafone Group PLC (LSE:VOD)’s focus, according to analysts at Citigroup, particularly given inflation in energy and wages ahead of its half-year results in November
Analysts at Citi believe that “significant volatility” will remain a feature into next year.
Vodafone remains committed to portfolio optimisation, said Citi, with “Vantage being central to the company’s value crystallisation and deleveraging efforts.”
“We update our model ahead of 1H23 results and incorporate Fx movement and recent revisions for Vantage…and Vodacom.”
Revisions at Vantage, which is Vodafone’s European mobile phone tower building business, reflect a special dividend in 2024 and a rise in its ordinary payout from FY25.
With regards to Vodacom, the South African arm, the group “trimmed estimates mainly on higher energy costs in South Africa, partly offset by international.”