- Vodafone Group’s board declared an interim dividend of 4.5-euro cents per share to shareholders.
- BT achieved its gross annualised cost savings target of £1 billion, 18 months ahead of the March 2023 timeline.
Telecommunications firms provide the technology that enables connection to the global networks. Telecom companies are therefore engaged in offering a range of services, including phone, mobile, internet, television services and the necessary infrastructure required to support them.
Telecommunications companies often present attractive investment opportunities to investors seeking dividend income. Let's take a closer look at two FTSE 100 listed telecommunication stocks – Vodafone Group and BT Group.
(Data source: Company release and Refinitiv)
Vodafone Group Plc (LON: VOD)
Vodafone Group is an international telecommunications company with operations spread across Africa, Asia, Oceania and Europe. Vodafone’s revenue increased by 5.0% year-on-year to €22.5 billion in H1 FY22 compared to €21.42 billion in H1 FY21. However, pre-tax profit declined by 24% year-on-year to £1.1 billion during the period.
In the UK, Vodafone’s revenues grew by 6% to £2.7 billion (€3.2 billion) in H1 FY 22, primarily boosted by roaming charges and visitor revenues to the country. About 149,000 mobile contract customers were added to the business in the UK during the period.
Vodafone Group’s board declared an interim dividend of 4.5 euro cents per share to shareholders.
The shares of Vodafone Group are currently trading at GBX 118.32, up by 5.17% at 9:32 AM BST on Tuesday, 16 November 2021. The market cap of the company currently stands at £30,778.62 million.
BT Group Plc (LON: BT.A)
BT Group is one of the leading companies offering telecommunications and network services to customers in the UK. Recently, BT announced that it achieved its gross annualised cost savings target of £1 billion, 18 months ahead of the March 2023 timeline. BT inaugurated a 5,000 sq. ft. robotics research facility at the BT Labs in Suffolk to develop innovative robotics solutions aimed at accelerating the deployment of essential infrastructure.
BT Group’s revenue stood at £10.30 billion for the half-year to 30 September 2021 compared to £10.60 billion in the same period in 2020. Its profit before taxation was £1 billion during the period compared to the previous year’s £1.06 billion.
BT Group’s declared an interim dividend of 2.31 pence per share to shareholders for the six months ended 30 September 2021.
The shares of BT Group are currently trading at GBX 166.05, up by 0.67% at 9:34 AM BST on Tuesday, 16 November 2021. The market cap of the company currently stands at £16,361.63 million.