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Vodafone cuts payout to shareholders

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Vodafone has swung to a full year loss and cut its dividend to shareholders to help reduce its debts.

The reduction in the dividend to 9 euro cents a share from 15.07 cents contradicts a pledge in November by new chief executive Nick Read to maintain the payout.

The mobile phone giant pays one of the biggest dividends in the UK.

The €7.6bn (£6.6bn) loss was in part caused by the sale of Vodafone India. A year ago profits were €2.8bn.

Mr Read said the group was at a "key point of transformation".

"We are executing our strategy at pace and have achieved our guidance for the year, with good growth in most markets but also increased competition in Spain and Italy and headwinds in South Africa.," he said.

"These challenges weighed on our service revenue growth during the year, and together with high spectrum auction costs have reduced our financial headroom."

He said the dividend was being "rebased" to allow further growth and cut back on debt

Source - BBC News

About the author

Philip Scott

Head of Equities, Director

Philip has worked as a Private Client Stockbroker for nearly 20 years, commencing his career in Operations with Rensburg Sheppards (now part of Investec plc) before spending 9 years with Killik & Co advising on and directly managing portfolios. He joined SI Capital in 2006 to head up the Private Client Advisory desk.

Philip is a regular contributor to local media commenting on stock market dynamics and is a Chartered Member of the Chartered Institute for Securities & Investment (MCSI). His RDR qualification gained special recognitionfrom the CISI for achieving the highest combined pass mark in the country for the Investment Advice Diploma in 2012.

“At SI Capital I enjoy being part of a talented team who collectively share the same desire to provide excellence in service.  My focus is to ensure that each client receives effective and optimal management of their assets.”

Philip lives locally, is married with 2 daughters and is an avid sports fan (if now predominantly from the sidelines).  His other interests include music and film.

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