Vodafone’s (VOD) fiscal 2022 results show revenue and profit improvements from the previous year. The British multinational telecom provider also said it was seeking opportunities to bolster its position in certain key markets.
Earnings Numbers at a Glance
Revenue rose to €45.58 billion in the fiscal year ending March 2022, from €43.81 billion the previous year. The profit of €2.62 billion rose from a profit of €536 million the previous year. Vodafone generated €5.4 billion in free cash flow, and ended the year with a net debt of €41.6 billion.
Pursuing Opportunities in Europe
Vodafone is trying to bulk up its business in Europe, and it is on the lookout for opportunities to strengthen its business in Italy, Spain, Portugal, and Britain.
Vodafone CEO, Nick Read, said, “There are opportunities across four markets that we are pursuing, and we’re engaged with a number of players in those opportunities…Clearly it’s a more challenging macro economic backdrop, and so that will have a factor on some of the players’ decisions.”
Wall Street’s Take
Consensus among analysts is a Strong Buy based on eight Buys and two Holds. The average Vodafone price forecast of GBp 161.89 implies upside potential of 35.6% to current levels. Shares have gained 8.6% over the past six months.
Smart Score
Vodafone scores a “Perfect 10” from TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
Key Takeaway for Investors
The latest results demonstrate that Vodafone is managing fairly well through the various global headwinds that businesses are grappling with across the board. Deals in the four targeted European markets could go a long way towards bolster the operator’s growth prospects.
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