Vodafone warns of earnings slump due to ‘Project Spring’
The sinister, Third-Reich sounding Project Spring is underway at Vodafone, the two year, £19bn investment plan which will overhaul its network and its (at the moment, woeful) high street presence.
Vodafone has been a bit of a donkey when it comes to 4G, constantly outperformed by 4Geewhizz kids EE. So it’s using some of the $130bn it made last year from selling Verizon Wireless in the US, and revamping the whole goddamn shooting match.
But shares fell as it warned that earnings would drop to around £11.4bn in 2015 - down from £12bn this year - thanks to the cash being thrown at improving the network.
However, Vittorio Colao, Vodafone’s CEO, remained sunnily optimistic, with a Project Spring in his step, saying that the network in London was already improving. He added:
‘We have commenced our Project Spring two–year investment programme which will accelerate our plans to establish stronger network and service differentiation for our customers. I expect the first signs of this to become evident later this year.’
‘While cash flow will be depressed during this investment phase, our intention to continue to grow dividends per share annually demonstrates our confidence in strong future cash flow generation.’
YEAH, YEAH, WHATEVER – the question is, next year will we be able to download porn on our phones dead dead quick?