Vodafone’s Capital Markets Day with its German management team (28% of EV) showed optimism on prospects for both revenue and EBITDA growth with capital intensity unlikely to change materially, consistent with the view conveyed at the
FY16E results. We model FY16-20E revenue and EBITDA CAGR of 1.6%/3.6%, respectively. Management does see competition remaining intense, especially lowend mobile and Enterprise, but sees investments in its network, service and brand well positioned to deal with challenges ahead. We rate Vodafone as OW; 260p PT.
- Consumer Mobile and Fixed – sees good momentum in all segments, especially cable momentum continuing and prepaid weakness easing.
- Enterprise – material opportunity from fixed.
- Upbeat on Technology evolution.