Activist investors are pushing for better financial performance
Reuters reports that Vodafone has selected investment bank Evercore to sell a stake in its fixed network in Spain. Its source was the financial Spanish newspaper Cinco Dias, which cited unidentified sources.
The process is reportedly still at an “embryonic stage”.
By selling a stake in the network, Vodafone Spain hopes to reduce the pressure on its Spanish business and deflect criticism from investors, the report said.
Fierce competition in the Spanish market and the heavy investment required for 5G is taking its toll.
Spanish mis-steps
In May this year, Vodafone Spain reported a 0.3% improvement in revenues to €4.18 million in the fiscal year that ended on 31 March, with an EBITDA of €957 million, down 1.1% on the previous year.
During fiscal year 2021-2022, revenues per service to fall by 2% to €3.714 million as Vodafone shed 164,000 broadband suscribers, leaivng it with about 3 million. Its pay-TV surbcribers fell by some 88,000 to 1.5 million.
Earlier in the week Vodafone announced it is talks to merge its UK opco with Three UK, owned by CK Hutchison.
It also announced the acquisition of smaller rival Nowo in Portugal, which is owned by Neither Evercore nor Vodafone wanted to comment.
Vodafone Group and its CEO, Nick Read are under pressure to improve financial performance from activist investors who want to see consolidation in some markets, the sale of smaller opcos and share buyback.