Vodafone Group(US:VOD)2020-11-16 19:29Financial Data and Key Metrics Changes - The company reported a service revenue growth of 1.5% across the group excluding roaming, with Europe showing stable performance [10] - EBITDA for H1 was reported at a decline of 2%, with guidance suggesting a positive EBITDA growth of approximately 0.5% to 3% in the second half of the year [15][17] Business Line Data and Key Metrics Changes - In the B2B segment, the company experienced a broad-based acceleration with a significant reduction in churn rates and a 6% growth in fixed services in Europe [7][9] - The company noted that the mobile segment had good growth, particularly in customer satisfaction metrics, leading in four out of five main markets [7] Market Data and Key Metrics Changes - The company highlighted that international travel recovery was impacted by renewed lockdowns, affecting revenue from roaming services [9] - Government support packages in various markets, particularly in Africa, were noted as a factor influencing revenue stability [9][75] Company Strategy and Development Direction - The company is focusing on digital transformation and cost reduction programs, with a target of an additional billion in cost reductions in Europe by FY23 [19] - The strategic emphasis is on ensuring assets have regional and local scale benefits, with a focus on return on capital employed [22] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for the second half of the fiscal year, expecting improved performance driven by strong commercial momentum in B2B [9] - The company is actively engaging with regulators to ensure a healthier market structure that supports adequate returns for investors [38] Other Important Information - The company is committed to a significant rollout of 5G services, focusing on delivering real 5G performance rather than misleading consumers with inferior products [32] - The company is also addressing regulatory challenges in Portugal, which have impacted investment decisions [39] Q&A Session Summary Question: Revenue trajectory and B2B performance - Management noted strong performance in B2B with low churn rates and good growth, expecting continued improvement in service revenue [6][9] Question: EBITDA drivers and cost-cutting plans - Management expects EBITDA to improve in the second half due to strong demand in B2B and effective cost reduction strategies [17][19] Question: Portfolio management and underperforming assets - The company is evaluating underperforming assets like Spain, where significant restructuring has led to improved performance [22][25] Question: 5G deployment and Huawei uncertainty - Management confirmed a proactive approach to 5G deployment, emphasizing the importance of real performance and addressing Huawei-related uncertainties [31][34] Question: Regulation in Portugal - Management highlighted ongoing regulatory challenges in Portugal, impacting investment plans, but noted improvements in conditions [39] Question: German broadband service revenue trajectory - Management indicated a stable outlook for German broadband service revenues, with expectations for growth driven by higher-speed offerings [45][56] Question: Operating leverage and cost pressures - Management acknowledged revenue movements due to COVID-related costs but emphasized ongoing cost-saving measures and expected operating leverage improvements [102]