We all have a broad idea of what the companies in our portfolios do. But how much do you really know about their products and their markets, or how much each contributes to its bottom line? Can understand how the company makes its money will help you decide if it’s a good investment.
Make-up of the profits in Vodafoneis changing. Will large batches of Verizon Wireless, which fueled profits Vodafone itself is no more. The company bought Kabel Deutschland, and has a war chest for further acquisitions as well as capital expenditure budget of £7 Billion project for the spring. What will the new Vodafone business look like?
The three topics of its strategy Vodafone 2015 data, projects and emerging markets. Already 60% of revenues come from mobile contracts packet data and traditional voice / text together. But this is now overlaid with the theme of unified communications : a combination of some or all of its mobile and fixed-line telephone, and broadband Internet and television. Vodafone said it will ” build, buy or borrow ‘ infrastructure for fixed-line to provide a unified communications.
And three-quarters of fiscal 2013 the company’s revenues from mobile services. However, mobile revenues are under pressure from regulators seeking to reduce mobile termination rates and roaming charges abroad, which together make up 13 % of service revenues in 2013.
Vodafone’s enterprise business is roughly split into global enterprises, and small and medium enterprises and machine-to- machine (M2M) solutions. Global companies usually outsource requirements for managing their mobile phones as a solution. SMEs are going to bundled services, such as a lot of the retail market. Includes M2M applications such as chips on fleets of trucks to provide fixed data.
Geographically, and reorganizing Vodafone to combine divisions northern and southern Europe has, and transfer to Turkey and the Middle East, Asia and Pacific Department of the fastest growing. It makes a distinction between a cleaner developed and emerging markets.
Within Europe, Vodafone is the market leader in Germany and Italy, with about 35 % market share and almost 30M customers in each. The company has a market share of 25% in the United Kingdom with customers 20M.
Approximately 30% of revenues come from emerging markets, but the number is much larger than the customers indicates growth potential.
Vodafone has 150M customers in India, where he has five of the market. Through a subsidiary owned 65% Vodacom, the company has customers 60M in Africa. It is expected to come from the growing population of emerging market growth, and the increased use of mobile phone and increase the spread of smartphones, particularly given the lack of infrastructure for fixed-line. – iii.co.uk