Vodafone sees $5.5 billion dividend from Verizon

Reuters

Vodafone (London, England), a mobile operator, could receive an annual dividend of $5.5 billion from its stake in Verizon Wireless (New York, N.Y.), its finance officer said.

A spokesman said Andy Halford, Vodafone's chief financial officer, had told reporters in New Delhi on Wednesday that the $5.5 billion figure stemmed from an assumption that Verizon Wireless had an annual free cash flow of $10 billion to $12 billion.

Vodafone owns 45 % of Verizon Wireless, with Verizon Communications owning the rest. But it has not received a dividend from the asset since 2005 because partner Verizon has focused instead on paying down debt.

Verizon Chief Executive Ivan Seidenberg said at the end of last year that he did not plan to consider a Verizon Wireless dividend until the end of 2011.

Analysts welcomed the comments as the dividend from Verizon Wireless has been long awaited by investors.

However, Liberum analyst Mark James noted a 70 % payout ratio was typical for telcoms, and that Verizon was unlikely to move to a 100 % ratio.

(Reporting by Kate Holton)

Featured Reports

Connected Vehicle: V2V and V2X Market Outlook 2017-2022

Connected vehicle technology is rapidly evolving to encompass Vehicle-to-Vehicle (V2V), Vehicle-to-Infrastructure (V2I), Vehicle-to-Device (V2D), and Vehicle-to-Pedestrian (V2P) signaling and communications. This research examines the V2V and V2X market including technologies, solutions, and major players. 
Buy now

 

IoT Device Management: Outlook and Forecasts 2017-2022

The report evaluates market opportunities and challenges for IoT Device Management solutions across various industry verticals.  The report includes forecasting for global and regional markets as well as potential across deployment types and sectors including automotive, manufacturing, smart cities, and more.
Buy now

 

DAS Market Analysis and Forecasts 2016-2021

Analysis of the DAS market, including carrier WiFi, small cells, and SON, and the leading companies in the DAS ecosystem and their solutions.  The report also includes evaluation of market drivers, challenges, and provides forecasts for 2016 to 2021.
Buy now

 

NextGen Network OSS/BSS Forecast 2016-2021

Comprehensive coverage of NGN OSS/BSS including opportunities within Big Data and IoT, analysis of the drivers and issues related to the technical and business aspects of OSS/BSS, deployments and operations issues, and quantitative analysis with forecasts for anticipated growth through 2021.
Buy now

 

 

Related Topics