Business Vodafone UK: share price jumps as company announces plan to return £430m in latest share buyback programme By Alex Nelson Published 7th Aug 2024, 14:04 BST Comment Watch more of our videos on Shots! and live on Freeview channel 276 Visit Shots! now The telecoms giant is set to return over £400 million as part of its turnaround plan 📊 Vodafone has announced a €500 million share buyback programme It follows the company’s earlier commitment to return €2 billion to shareholders after selling its Spanish business Goldman Sachs has been hired to manage the buyback process, which led to a 1.7% increase in share price Vodafone is undergoing a turnaround plan involving the sale of its Italian and Spanish businesses and job cuts It is also seeking approval for a £15 billion merger with Three from the Competition and Markets Authority which has extended its investigation into the merger Sign up to our daily newsletter Sign up Thank you for signing up! Did you know with a Digital Subscription to The News, you can get unlimited access to the website including our premium content, as well as benefiting from fewer ads, loyalty rewards and much more. Learn More Sorry, there seem to be some issues.
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. This site is protected by reCAPTCHA and the Google Privacy Notice and Terms of Service apply. Vodafone has announced it will return 500 million euros (£430 million) over the coming months.
The telecom giant said that the latest phase of its share buyback programme, part of a larger strategy to enhance investor returns, will run until Friday 29 November 2024. Advertisement Hide Ad Advertisement Hide Ad It means shareholders will be benefiting once again, after the company’s commitment in March to return two billion euros (£1.7 billion) to them after selling its Spanish business earlier this year.
It has hired Goldman Sachs to manage the process. Shares in Vodafone - which is currently in the midst of a turnaround plan that involves selling its Italian and Spanish businesses and cutting thousands of jobs - increased by 1.7% following the announcement.
In May, the company reported a return to growth in its key markets, despite a decline in overall revenue and operating profit last year. Vodafone is also awaiting approval from the UK’s competition regulator for a planned £15 billion merger with Three. The Competition and Markets Authority (CMA) said last week that it had extended the period of time it needs to investigate the deal.
Advertisement Hide Ad Advertisement Hide Ad The plans to combine have been under scrutiny since being announced last summer, delaying what would create the UK’s largest mobile phone network. The two mobile firms say the deal will allow them to invest more in their services and better compete with major rivals, EE operator BT and Virgin Media-O2. In an update published on 2 August, the CMA said it was giving itself until 7 December to complete the probe and publish its findings.
The £430 million share buyback announcement primarily benefits shareholders and investors rather than customers directly, and the average Vodafone user won’t see any excess funds deposited into their bank account. Advertisement Hide Ad Advertisement Hide Ad But while the buyback doesn’t directly impact customers, it reflects Vodafone’s efforts to improve its financial health - a stronger, more stable company could lead to better services or infrastructure improvements, potentially benefiting customers indirectly. The success of its turnaround plan could result in improved service quality and customer experience in the long run, and the company could use the proceeds from asset sales (like the Spanish business) to invest in new technology or improve its network.
What are your thoughts on Vodafone's latest share buyback and its overall turnaround strategy? How do you think these moves will impact the company and its customers? Share your insights and join the discussion in the comments section. Continue Reading Related topics: Vodafone Investors Boost Comment Comment Guidelines National World encourages reader discussion on our stories. User feedback, insights and back-and-forth exchanges add a rich layer of context to reporting.
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