Vodafone, one of the world’s largest mobile phone group, is expected to announce fall in this financial year. On Tuesday, a presentation was held at Vodafone’s results for the year 2006-2007. According to the analysts of leading industry, its margin would further fall by March 2008. On Friday, Vodafone declined to make this expected announcement.
It is also being expected that Vodafone would continue with its strategies and will kept doing deals in the emerging markets, as said by one of the major analysts of Citigroup, Terence Sinclair. He also informed that it might goes on buying 50% of the South African joint venture. Due to the declining margin, there is immense pressure on the chief executive, Arun Sarin.
Last year, Vodafone also warned about the expected decline by one percent on organic earnings before interest, tax, depreciation and amortization. Last night, shares of Vodafone also closed at 151.6p, i.e. down by 0.3 percent. Since last September, there is rise of more than 30 percent.
According to analysts, Nick Delfas and Morgan Stanley results of 2006-2007 would definitely in accordance with the market expectations. For the year 2007-2008, Mr. Sinclair has estimated margin of 36.4 percent. Vodafone is gradually progressing towards profit for the year 2007-2008 on the basis of operating profit than ebitda. .
Image: Portugaloffer
Via:ft
