Vodafone looks set to write off GBP8 billion of assets, as well as cutting spending and abandoning a share buyback, when it discloses its results. Europe’s biggest mobile operator will write down the value of its stake in fixed-line operations in France and Germany, in addition to its stake in China Mobile.
Vodafone will cut spending up to GBP1 billion as it focuses on improving its returns. It also looks likely to resist pressure from investors to buy back shares with its cash reserves of GBP6 billion.
Nor is the company likely to raise dividends. It believes that its capital should be used to build next generation networks, and for acquisitions.