VOD Nov 2019 19.500 put

OPR - OPR Delayed Price. Currency in USD
0.0700
-0.0300 (-30.00%)
As of 3:04PM EST. Market open.
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Previous Close0.1000
Open0.0700
Bid0.0300
Ask0.0500
Strike19.50
Expire Date2019-11-22
Day's Range0.0700 - 0.0700
Contract RangeN/A
Volume201
Open Interest26
  • Vodafone lifts outlook as it returns to growth
    Reuters Videos

    Vodafone lifts outlook as it returns to growth

    Vodafone has lifted its outlook for the year. The world's second-largest mobile network operator says core earnings could now go as high as 15 billion euros - about 16.5 billion dollars. That's up from a maximum of 14.2 billion euros in earlier outlooks. The firm is feeling more hopeful after revenues returned to growth. They were up 0.3% in the first half. Core earnings rose 1.4%. Vodafone says conditions improved in Spain and Italy. Retail sales in Germany also did well. Now investors will hope it's evidence of a sustained turnaround. Chief Executive Nick Read cut Vodafone's dividend for the first time in May. Tough market conditions and a need to invest in networks forced him to drop a pledge not to trim the payout. Vodafone shares tumbled following the move, but have recovered about 30% since.

  • Telecom Italia aims to sell stake in Vodafone Italian tower tie-up - CEO
    Reuters

    Telecom Italia aims to sell stake in Vodafone Italian tower tie-up - CEO

    Telecom Italia (TIM) plans to sell a stake in the mobile mast business it is creating in Italy with rival Vodafone to infrastructure funds, the Italian group's chief executive said on Thursday. The two companies agreed in July to merge their Italian mobile assets under the INWIT business that is currently 60%-owned by TIM. The deal is awaiting European Union antitrust approval and is expected to wrap up in the first half of 2020, INWIT's chief executive said last week.

  • Telecom Italia aims to sell stake in Vodafone Italian tower tie-up: CEO
    Reuters

    Telecom Italia aims to sell stake in Vodafone Italian tower tie-up: CEO

    Telecom Italia (TIM) plans to sell a stake in the mobile mast business it is creating in Italy with rival Vodafone to infrastructure funds, the Italian group's chief executive said on Thursday. The two companies agreed in July to merge their Italian mobile assets under the INWIT business that is currently 60%-owned by TIM. The deal is awaiting European Union antitrust approval and is expected to wrap up in the first half of 2020, INWIT's chief executive said last week.

  • The Zacks Analyst Blog Highlights: Lloyds Banking, Unilever, BP, RELX and Vodafone
    Zacks

    The Zacks Analyst Blog Highlights: Lloyds Banking, Unilever, BP, RELX and Vodafone

    The Zacks Analyst Blog Highlights: Lloyds Banking, Unilever, BP, RELX and Vodafone

  • Vodafone Idea makes $7 billion loss after provisions for government dues
    Reuters

    Vodafone Idea makes $7 billion loss after provisions for government dues

    Indian mobile carrier Vodafone Idea on Thursday reported the biggest quarterly loss in India's corporate history after making provisions for outstanding government dues. Vodafone Idea, made up of the local unit of Vodafone Group Plc and billionaire Kumar Mangalam Birla's Idea Cellular, reported a consolidated net loss of 509 billion rupees ($7.13 billion) in the second quarter to September. The company took a charge of 256.78 billion rupees for the quarter after India's Supreme Court last month upheld a demand by the telecoms department that wireless carriers pay 920 billion rupees in overdue levies and interest.

  • Besieged Vodafone India Unit Seeks Relief After $7 Billion Loss
    Bloomberg

    Besieged Vodafone India Unit Seeks Relief After $7 Billion Loss

    (Bloomberg) -- Vodafone Idea Ltd., the indebted wireless carrier that’s warned of an insolvency risk in the face of a $4 billion demand from the Indian government, urgently sought relief from the policy makers after reporting the nation’s biggest quarterly loss.India’s No. 2 phone company reported a net loss of 509 billion rupees ($7.1 billion) for the quarter through September after taking a one one-time charge of 256.8 billion rupees, according to a filing Thursday. The operator, which was formed by the merger of Vodafone Group Plc’s local unit with billionaire Kumar Mangalam Birla’s Idea Cellular Ltd., hasn’t seen any profit since the deal was announced in 2017.“The company’s ability to continue as going concern is dependent on obtaining the reliefs from the government,” Vodafone Idea said in a statement. The company is “in active discussions with the government seeking financial relief,” it said.Saddled with $14 billion of net debt, Vodafone Idea is fighting for survival after India’s top court last month ordered it to pay additional fees the government said were due from prior years. Vodafone Chief Executive Officer Nick Read told reporters this week in London that the situation was “critical” and unless India eases off on its demands, the venture may be headed for collapse.Rival Bharti Airtel Ltd. also posted a record net loss on Thursday after the close of market hours, highlighting the extreme pain felt by the Indian telecom operators as they battle high levels of debt, a bruising price war unleashed by billionaire Mukesh Ambani’s Reliance Jio Infocomm Ltd. and more recently, the adverse court verdict.In its Oct. 24 ruling, the Supreme Court of India ruled in favor of the government’s method of calculating operators’ revenue, a decision that means carriers must pay about $13 billion combined -- mostly license and spectrum fees built up over years. Tycoon Sunil Mittal’s Bharti Airtel owes $3 billion, while Reliance Jio needs to pay 130 million rupees, the least, since it has only been in business since 2016.The finance ministry won’t back down from collecting the amount, which needs to be paid within three months as per the court order, an official with knowledge of the matter said this month.The demand has come as a severe blow to Vodafone Idea at a time when it is facing competitive pressure from Jio. The upstart controlled by Asia’s richest man barreled into India’s wireless market three years ago and vaulted to the top with free calls and cheap data, acquiring about 380 million users.Jio’s entry drove some incumbents to bankruptcy, while some like Vodafone and Idea merged. But the pressure on earnings continued. Bharti Airtel, whose parent counts Singapore Telecommunications Ltd. as an investor, reported the highest ever quarterly loss of 230.4 billion rupees for three months ended September.Losses at Bharti Airtel forced SingTel to also make such a hefty provision that it slipped into a quarterly loss for the first time.‘Fragile State’Bharti Airtel continues to engage with the government, Gopal Vittal, company’s chief executive officer for India and South Asia operations said in a statement, referring to India’s top court verdict on dues. “We are hopeful that the government will take a considerate view in this matter given the fragile state of the industry,” said Vittal.To ease the pressure on its Indian venture’s finances, Newbury, England-based Vodafone, which owns about 45% of the venture, said this week that it wants a two-year delay on spectrum payments and lower license fees and taxes. It’s also called for the spectrum payment demanded by the court to be spread over 10 years and is asking for waiver and penalties.“If you don’t get the remedies being suggested, the situation is critical,” Vodafone CEO Read said on Nov. 12. “If you’re not a going concern, you’re moving into a liquidation scenario -- can’t get any clearer than that.”Opt For InsolvencyEarlier, Read said Vodafone would refrain from plowing more money into India. The other partner, Birla, won’t inject fresh equity and will opt for insolvency if the government doesn’t provide relief, the Economic Times reported Thursday, citing people it didn’t identify.At the same time, Reliance Jio Infocomm Ltd., the largest carrier, has insisted its two smaller rivals can and should pay up on time.A government panel is considering deferring payments due by March 2021 and March 2022, an official said last month. It will also consider cutting spectrum fees and other charges, said another official, who asked not to be identified citing rules.India had a dozen independent carriers two years ago, and just three non-state operators are left standing today. The only clear winner has been Jio, which is backed by the deep pockets of Ambani’s sprawling energy-to-petrochemicals empire.Vodafone may have to write down its 45% stake in Vodafone Idea to around 600 million euros ($662 million), analysts have estimated, from the 1.6 billion euros it was worth in May. The Indian carrier’s 300 million subscribers form about two-thirds of the U.K.-based carrier’s global customer base.To contact the reporter on this story: P R Sanjai in Mumbai at psanjai@bloomberg.netTo contact the editors responsible for this story: Sam Nagarajan at samnagarajan@bloomberg.net, ;Arijit Ghosh at aghosh@bloomberg.net, Dave McCombs, Bhuma ShrivastavaFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • InterDigital Invests $50K for Mobile Edge Computing Research
    Zacks

    InterDigital Invests $50K for Mobile Edge Computing Research

    InterDigital (IDCC) is committed to fostering edge computing research and development opportunities to boost future technologies in IT and telecommunications industry.

  • Telefonica COO supports consolidation in Spanish telecom crowd
    Reuters

    Telefonica COO supports consolidation in Spanish telecom crowd

    A top official at Telefonica said on Wednesday he would support consolidation in Spain's fiercely competitive telecommunications market, where takeover speculation has been rife. The telecoms market in the euro zone's fourth-largest economy has become ever-more crowded, squeezing profits and prompting British peer Vodafone to propose cutting up to one fifth of its workforce there. "We would be supportive of consolidation of the Spanish market if that scenario were to take place," Chief Operating Officer Angel Vila told the Morgan Stanley European Technology, Media and Telecoms conference in Barcelona.

  • 5 Stocks to Profit as U.K. Economy Hits Decade Low in Q3
    Zacks

    5 Stocks to Profit as U.K. Economy Hits Decade Low in Q3

    Brexit uncertainty hurts Britain's labor market, manufacturing sector and trade prospects, leading to slowest annual growth rate of the U.K. economy in nearly a decade.

  • India Imperils Foreign Investment With Telecom Cash Grab
    Bloomberg

    India Imperils Foreign Investment With Telecom Cash Grab

    (Bloomberg Opinion) -- For Kumar Mangalam Birla’s textile-to-telecom empire, adversity is a 100-year-old companion. In 1919, when the Indian businessman’s great-grandfather wanted to start a jute mill, the dominant British firm, Andrew Yule & Co., bought all the surrounding Calcutta land. The Imperial Bank, the forerunner of today’s State Bank of India, initially refused Birla a loan.(1)The government of post-independence India stymied the Birla conglomerate with kindness. Soviet-style planning and state socialism protected the family’s legacy licensed firms by keeping competition out. But they inhibited growth. Birla’s father, Aditya Vikram, went to Thailand, Indonesia and the Philippines because he wasn’t allowed to expand at home. “I for one fail to see where the concentration of economic power is: with the big business houses or with the government?” he wondered in 1979. Fast forward 40 years, and the 52-year-old current chairman of the group would be justified to reprise his late father’s frustration. The liberalizing spirit of the 1990s Indian economy has lost much of its force. After dismantling the license raj, a system of strict government-controlled production, and encouraging capitalism, New Delhi is gripped once more by a feverish statism that’s making Birla’s shareholders nervous. The slide began before Prime Minister Narendra Modi came to power in 2014, and was one of the reasons why businesses backed his call for “minimum government, maximum governance.” But five years later, relations between private enterprise and the government have turned even testier.Take telecommunications, the main source of investors’ anxiety. Ever since India opened up the state-run sector in the 1990s, the Aditya Birla Group has been an anchor investor. Partners and rivals like AT&T Inc., India’s Tata Group, and Li Ka-shing’s CK Hutchison Holdings Ltd. came and went, but Birla remained. Currently, the group owns 26% of the country’s largest mobile operator by subscribers, Vodafone Idea Ltd., with the British partner controlling 45%. An Indian court last month directed this bruised survivor of a nasty price war to pay 280 billion rupees ($4 billion) in past government fees, interest and penalties. Overall, India wants to gouge its shriveled telecom industry of $13 billion. The fund-starved government expects operators to cough up more at 5G auctions next year. How long can the Birla boss hang in? With Vodafone Idea saddled with losses and $14 billion in net debt, should he even bother?It’s doubtful whether partner Vodafone Group Plc will linger. This isn’t the first time it has been clobbered by unreasonable government demands. In 2012, India retrospectively changed its tax law to pursue a $2.2 billion withholding tax notice against the U.K. firm. Seven years later, that dispute is far from resolved, and the unit has now been slapped with a new bill.In its half-yearly earnings reported Tuesday in London, Vodafone fully wrote down the book value of its India operations, and warned that the unit could be headed for liquidation. Vodafone’s 42% stake in a separate cellular tower company in the country, once sold, will get used largely to pay off the loan it took to pump capital into the main telecom venture. After that, the U.K. firm will have a little over $1 billion left to support Vodafone Idea, according to India Ratings & Research, a unit of Fitch Ratings. However, the India business would be required to find $5.5 billion just for interest- and spectrum-related payments until March 2022.Will Birla step into the breach?Out of the Indian group’s 26% in Vodafone Idea, about 11.6% is held by Grasim Industries Ltd., and another 2.6% is owned by Hindalco Industries Ltd. Hindalco, among the world’s largest aluminum makers, is battling weak metals demand and a complicated takeover of the U.S.-based Aleris Corp. The bulk of the burden of a telecom rescue — should there be one — would fall on Grasim. It acts as a holding company for Birla’s cement and financial services businesses, apart from directly owning factories that churn out wood-based fiber and chemicals like caustic soda used in soap and detergent.Mumbai-based Emkay Global Financial Services says that in the worst-case scenario, where the government doesn’t back down and Birla refuses to fold his telecom cards, a rescue mounted by by Grasim could cost it 187 rupees per share. If Birla refrains from throwing good money after bad, the value of everything else Grasim owns net of debt is 1,126 rupees a share, or 47% more than the current stock market price. Clearly, the overhang of the Vodafone uncertainty is playing on investor psyche. Once the U.S.-China trade war stops making global textile markets jittery, fiber prices will firm. Grasim, in investors’ view, is better off spending $2 billion on new capacities in fiber, chemicals and cement than wasting any more money trying to salvage the telecom venture.The Indian government should see the folly of effectively turning the telecom industry into a two-horse race between Reliance Jio Infocomm Ltd., controlled by Mukesh Ambani, the richest Indian, and Bharti Airtel Ltd., which, too, is staggering under a mountain of debt. As IIFL Securities put it, bankruptcy of Vodafone Idea would hurt all stakeholders. Vodafone and Birla would lose control, the government would forgo $1.7 billion in annual spectrum revenue and banks would take losses on their $4 billion-plus exposure.Such an outcome would cast a serious doubt on the ability of private entrepreneurs to flourish, especially if they — like Birla or Amazon.com Inc. boss Jeff Bezos — happen to find themselves in competition with Ambani in a tightly regulated industry. Future investors will think twice. The rift between the government and business wasn’t Modi’s creation, but to allow the mistrust to turn into a chasm would be one of his administration’s gravest mistakes.(1) See, “Aditya Vikram Birla: A Biography” by Minhaz Merchant, Penguin India, 1997To contact the author of this story: Andy Mukherjee at amukherjee@bloomberg.netTo contact the editor responsible for this story: Patrick McDowell at pmcdowell10@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Andy Mukherjee is a Bloomberg Opinion columnist covering industrial companies and financial services. He previously was a columnist for Reuters Breakingviews. He has also worked for the Straits Times, ET NOW and Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • France's Bad Boy of Telecoms Joins the Geriatric Set
    Bloomberg

    France's Bad Boy of Telecoms Joins the Geriatric Set

    (Bloomberg Opinion) -- Xavier Niel is supposed to be the bad boy of French telecoms. He never finished college, once ran an online sex-chat service, and shook up incumbents like Orange SA with cheap pricing when he launched Free Mobile in 2012.That makes one element of his push to extend control over Free’s parent Iliad SA particularly surprising: the implicit admission that the Paris-based company is becoming just like any other boring telecom company. It's an overdue acknowledgement of market realities.It all comes down to the dividend. Mobile carriers have appealed to investors over the past decade not for their growth prospects but their generous dividend payouts. European telecommunications firms will have an average dividend yield of 5% this year, according to estimates compiled by Bloomberg. That compares with the 3.3% average of the broader Stoxx 600 Index of European companies.Iliad has differed from the crowd. Its 12-month yield has averaged 0.8% since 2009. That’s because it promised growth — the stock climbed almost three-fold between 2009 and 2017. But the past two years have been a different story. Before today, the shares had fallen 63% from their 2017 peak as French rivals reclaimed market share from the low-cost upstart.On Tuesday, Niel announced plans to boost his holding in the firm by as much as 20 percentage points. The complicated structure will see Iliad buy back up to 1.4 billion euros ($1.5 billion) of stock for 120 euros per share, then issue new shares of an equivalent amount that Niel has pledged to buy, in a rights issue to which other shareholders can also subscribe. At the same time, Iliad announced it would increase the dividend by a chunky 189% to 2.60 euros, bringing the yield to more than 2%. That’s still very much at the low end of its peers but a substantial change in policy, particularly at a time when the region’s giants — Vodafone Group Plc and Deutsche Telekom AG — are cutting their dividends as they anticipate increased spending on 5G networks.For Niel, it’s a canny way of using the company’s stronger balance sheet to extend his control. Iliad is expecting proceeds of more than 2 billion euros from the sale of infrastructure assets this year. If he increases his stake to above 70% from the current 52%, as the buyback and rights issue might allow, he can expect annual dividend proceeds exceeding 100 million euros. That can help him service the personal debt that he’s likely assuming to fund the rights issue. The move may also strengthen Niel's hand and his financial upside, should the perennial on-again, off-again efforts to consolidate the French market resume.The steps at Iliad don’t particularly disadvantage existing shareholders financially, even if they do seem to be very much in Niel’s interest. They’re under no obligation to sell, and have already benefited from a jump in the share price, which climbed 18% on Tuesday. Nor does the increased payout significantly weaken the firm’s finances: The dividend payout will top 154 million euros. Net debt of 3.7 times Ebitda will fall closer to 2.5 times Ebitda. And it’s far less outrageous than the self-interested efforts of fellow French billionaire Vincent Bollore and his family to extend control over Vivendi SA. The Bollores are simply carrying out a buyback of the media conglomerate’s shares, then canceling them, leaving the family with a bigger stake without increasing their financial risk.But for all of Niel’s assertions that the investment reflects his “confidence in the company’s industrial project,” he will likely need Iliad to continue the more generous dividend payouts to service his greater debt. That will gradually chip away at Iliad’s ability to engage in costly price wars to drive market share. Instead, it’s becoming more like its rivals, generating steadier, more predictable returns, rather than promising stratospheric stock growth.To contact the author of this story: Alex Webb at awebb25@bloomberg.netTo contact the editor responsible for this story: Melissa Pozsgay at mpozsgay@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Vodafone Expands UK Broadband Coverage With Openreach Deal
    Zacks

    Vodafone Expands UK Broadband Coverage With Openreach Deal

    Vodafone (VOD) will offer its Gigafast Broadband service to three new cities in the United Kingdom, namely Birmingham, Bristol and Liverpool by spring 2020 through Openreach's FTTP network.

  • European stocks inch higher before key Trump speech on China
    MarketWatch

    European stocks inch higher before key Trump speech on China

    European stocks edged higher on Tuesday ahead of a critical speech on China trade relations from President Donald Trump, supported by generally well-received earnings.

  • Barrons.com

    European Stocks Lean Higher Before Critical Trump Speech on China

    European stocks edged higher on Tuesday ahead of a critical speech on China trade relations from President Donald Trump, supported by generally well-received earnings.

  • Situation critical: Vodafone's future in India in doubt after court ruling
    Reuters

    Situation critical: Vodafone's future in India in doubt after court ruling

    Vodafone said its future in India could be in doubt unless the government stopped hitting operators with higher taxes and charges, after a court judgment over licence fees resulted in a 1.9 billion euro group loss in its first half. Chief Executive Nick Read said India, where Vodafone formed a joint venture with Idea Cellular in 2018, had been "a very challenging situation for a long time", but Vodafone Idea still had 300 million customers, equating to a 30% share of the sizable market. "Financially there's been a heavy burden through unsupportive regulation, excessive taxes and on top of that we got the negative supreme court decision," he said on Tuesday.

  • Bloomberg

    Vodafone Jumps as Return to Growth Eases Pressure on CEO

    (Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Vodafone Group Plc returned to sales growth in the second quarter as its toughest European market of Spain showed signs of improvement, in a boost for Chief Executive Officer Nick Read. Its shares rose as much as 3.2% Organic service revenue grew 0.7%, above the 0.2% forecast by analysts. It follows two quarters of declines. Vodafone also upgraded its full-year earnings guidance.Key InsightsRead needs some decent sales growth to generate cash for network investments and service debts built up with Vodafone’s purchase of Liberty Global Plc assets.South Africa, Italy and Spain all improved as Vodafone faced tough competition from former phone monopolies and no-frills challengers. The company said it had the best ever quarter for new customers in the U.K.Read said he expects to build upon the revenue growth in the second half of the year in both Europe and Africa.The company toned down its guidance on full-year free cashflow, while boosting its forecast for earnings after the Liberty Global deal.Market ReactionVodafone shares were up 2.5% as of 8:30 a.m. in London. The stock has risen 14% in the past year, outpacing a 5% rise in the Stoxx 600 Telecommunications Index, as investors welcomed Read’s plans to collaborate more with rivals on infrastructure to cut costs.NOTE: Vodafone CEO’s Wild First Year Leaves Stock Where It StartedOn Monday, 17 analysts surveyed by Bloomberg rated the stock a buy, six hold and two sell.Get MoreThe company made a loss in its Indian business after a court ordered it to pay a spectrum fee. It now sees group free cash flow of “around” 5.4 billion euros versus previous guidance of “at least” 5.4 billion. Vodafone sees adjusted earnings before interest, tax, depreciation and amortization of 14.8 billion euros to 15 billion euros, up from its previous guidance of 13.8 billion to 14.2 billion.Company statementNOTE: BT Drops as Liberty Global Switches to Vodafone for Mobile(Updates with share price rise. A previous version of this story was corrected to fix the revenue growth figure.)To contact the reporter on this story: Thomas Seal in London at tseal@bloomberg.netTo contact the editors responsible for this story: Rebecca Penty at rpenty@bloomberg.net, Thomas PfeifferFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Vodafone lifts 2020 earnings guidance on Liberty Global gains
    MarketWatch

    Vodafone lifts 2020 earnings guidance on Liberty Global gains

    The British telecommunications company upgraded its earnings outlook as it said that lower cash flows from India and the New Zealand sale will lead to slightly lower-than-previously-expected cash flow and posted a narrowed pretax loss for the first half.

  • Financial Times

    Vodafone upgrades profit guidance despite India woes

    Vodafone has upgraded its profit guidance for the year by up to €1bn despite slumping to a loss in the first half as a result of its Indian turmoil. Group chief executive Nick Read and chairman Gerard Kleisterlee travelled to India last month to ask the government for a series of “relief” measures to ensure Vodafone Idea does not collapse as a result of the penalty.

  • Financial Times

    Vodafone’s share price disconnected from €1bn earnings boost

    This state intermediation meant Vodafone’s free cash flow from India fell to zero in the six months to September 30 — cutting its full-year cash flow guidance, after allowing for the sale of its New Zealand business and acquisition of Liberty Global assets, to “around €5.4bn” from “at least” that figure previously.

  • Financial Times

    Vodafone strikes deal with BT to expand broadband coverage

    Vodafone has struck a deal with BT to use its network to offer broadband to up to half a million customers in three British cities. BT, via its Openreach network unit, is under pressure to upgrade rapidly Britain’s copper telephone lines to “full fibre” connections but needs to bring millions of customers who use other broadband brands on board to justify the cost. to offer “gigabit” speed broadband to all UK premises by 2025 if certain conditions are met.

  • Reuters

    PRESS DIGEST- Financial Times - Nov 7

    Tom Watson, deputy leader of Britain's Labour Party, said on Wednesday, he is standing down from both his frontline position and parliament at the forthcoming general election. UK's Prime Minister Boris Johnson has launched his general election campaign with a promise to deliver Brexit by January, to champion Britain's free market economy and to preside over a "moderate and compassionate" government. Britain's Virgin Media is ditching BT Group's mobile network for rival Vodafone Group Plc from late 2021 in a five-year deal that will allow it to launch new services such as 5G to its more than 3 million customers.