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Highlights
- Vodafone has recently cautioned UK customers regarding price hikes and job cuts.
- This came with the telecom company unveiling a €1 billion-plus (£879 million) cost-cutting strategy to deal with the skyrocketing energy costs.
- Moreover, due to a €300 million year-on-year upsurge in energy costs across its operations, the company has slashed its annual profit guidance.
Vodafone has recently cautioned UK customers regarding price hikes and job cuts. This came with the telecom company unveiling a €1 billion-plus (£879 million) cost-cutting strategy to deal with the skyrocketing energy costs and soaring inflationary stresses.
The company said that its new multi-year cuts strategy would not be enough to tackle all the cost hikes and therefore warned customers about the upcoming increase in their bills as it would have to pass on the costs to the customers. Moreover, due to a €300 million year-on-year upsurge in energy costs across its operations, the company has slashed its annual profit guidance.
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According to Nick Read, Vodafone's CEO, the company can move forward with cost action, which it has already taken. However, the role of price is also important for attaining sustainability in the infrastructural investments it makes.
Vodafone was increasing its prices in 11 of the 12 European markets it operates in, including the UK, as per Read. He claimed that customers' bills would witness an annual hike in line with the level of inflation as determined by January's consumer prices index CPI), plus 3.9%.
Amid these fears of price hikes and job cuts, UK investors can keep an eye on the telecom stocks listed on the London Stock Exchange.
Vodafone Group plc (LON: VOD)
The market cap of Vodafone Group plc stood at £26,366.68 million as the market opened on Wednesday morning at around 8:00 AM (GMT). After closing at GBX 95.89 on Tuesday, VOD shares at the time of writing were witnessing a fall of 0.51% and were trading at GBX 95.40. The EPS (earning per share) of the FTSE100-listed company stood at 0.07 while it enjoyed a turnover (on book) of £1,399,612.71. The group has given returns of -14.73% and -14.92% on YTD (year to date) and one-year basis, respectively, as of 16 November.
Airtel Africa plc (LON: AAF)
The market cap of Airtel Africa plc stood at £4,397.04 million as the market opened on Wednesday morning at around 8:00 AM (GMT). After closing at 117.00 on Tuesday, AAF shares at the time of writing were witnessing a fall of 0.26% and were trading at GBX 116.70. The EPS of the FTSE100-listed company stood at 0.17 while it enjoyed a turnover (on book) of £38,169.10. The group has given returns of -12.57% and -14.11% on YTD and one-year basis, respectively, as of 16 November.
Telecom Plus plc (LON: TEP)
The market cap of Telecom Plus plc stood at £1,805.09 million as the market opened on Wednesday morning at around 8:00 AM (GMT). TEP shares at the time of writing were trading at the same price at which they closed on Tuesday, at GBX 2,275.00. The EPS of the FTSE250-listed company stood at 0.45. The group has given 42.50% and 68.91% returns on YTD and one-year basis, respectively, as of 16 November.
