Vodafone Group (LON:VOD) is stepping up its expansion in Portugal, with the group’s local unit inking a deal with NOS Fibre. The agreement is expected to give Vodafone Portugal access to 1.3 million homes and businesses in new areas.
Vodafone’s share price has reacted positively to the news, having gained 0.81 percent to 210.50p as of 12:55 BST, slightly outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.52 percent higher at 7,410.86 points. The group’s shares have lost more than five percent of their value over the past year, and are up by some five percent in the year-to-date.
Vodafone announced in a statement today that its unit in Portugal had inked a deal with the country’s media company NOS to deploy and share a fibre-to-the-home network which will be marketable to around 2.6 million homes and businesses in Portugal. The two companies will provide reciprocal access to each other's networks on commercially agreed terms. The total number of homes and businesses to be shared by the two companies will be around 2.6 million covering both existing and greenfield areas, with Vodafone Portugal to gain access to 1.3 million homes and businesses in new areas.
“The agreement is consistent with Vodafone Group's fixed infrastructure strategy, which aims for an optimal mix of build, strategic partnerships, wholesale and buy approaches,” the blue-chip telco said in the statement.
The news comes after Vodafone recently unveiled plans to invest approximately €2 billion of incremental capital expenditure in Germany by the end of calendar 2021.
In analyst news, Nimus reiterated its ‘add’ rating on Vodafone today, valuing the shares at 250p. According to MarketBeat, the blue-chip telco currently has a consensus ‘hold’ rating and an average price target of 244.59p.