Vodafone Share Price: Analysts Expect 0.6% Rise in Revenue

on Jul 18, 2013

iNVEZZ.com Thursday July 18th: Vodafone (LON:VOD) is set to report first quarter results on Friday with investors eager to receive more details on the company’s ₤9.1 billion move to acquire Germany’s biggest cable operator.

Analysts have forecast that Vodafone will report total revenue for the first quarter of about ₤10.832 billion, 0.6 percent higher than in the same period last year. Service revenue in Europe is expected to be 2.5 percent higher at ₤7.115 billion while service revenue in Africa, Middle East and Asia Pacific (AMAP) is forecast to come in 0.02 percent lower at ₤3.032 billion.

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Investors will also be looking for more details on the Kabel Deutschland acquisition deal, which would see Vodafone’s network in Germany expand to 32.4 million mobile, five million broadband and 7.6 million direct TV customers. Bloomberg has reported that the UK mobile operator plans to complete the acquisition after the German cable operator’s shareholder meeting in October (Kabel Deal Could Come in October).

Liberty Global, the British-registered American telecommunications and television company, has been seen in the past month as a potential spoiler for Vodafone Group’s bid for Kabel Deutschland. However, billionaire John Malone, who controls the group, said in an interview with Bloomberg this week he was pulling out of the race for the German company. “Unfortunately the Vodafone guys have preempted us in trying to consolidate the rest of Germany. We wish Vodafone good luck. We’re hoping they’ll be a good fellow traveller in the cable business,” he said.

**Telstra Threatens Vodafone with Legal Action in Australia**
Australian telecommunications and media company Telstra has threatened to pursue legal action against Vodafone as it attempts to force the No 3 mobile player in the country to withdraw claims that it has faster 4G network than its competitor.
“Telstra is confident of the claims that we make about our network. This type of action is not uncommon,” a Telstra spokeswoman said.

“We have received the legal correspondence [and] we stand by our speed claims,” Vodafone responded. “We stand behind our years of extensive investment and innovation in the mobile network and we have a vested interest in protecting that investment.”
4G mobile broadband is a key battleground for Australia’s mobile operators as they fight to attract more smartphone users. The new generation network’s speeds are several times faster than what 3G can offer.
**Analysts on Vodafone**
!m[Telstra Threatens Legal Action over Vodafone’s 4G Claims](/uploads/story/4094/thumbs/pic1_inline.jpg)
Jefferies Group reiterated its “hold” rating on Vodafone’s shares in a research note issued to investors on Monday. The firm currently has a price target of ₤179.00p on the stock.
Four analysts have issued a “sell” rating on Vodafone, seven have given it a “hold” rating and seventeen have assigned a “buy” rating. The shares have a consensus rating of “hold” and an average price target of 196.47p.
**Vodafone’s share price was 192.50p as of 18.07.2013, 08.40 BST.**


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