The Vodafone (LSE: VOD) share price is a catastrophe greater than 20 years within the making. Shares within the FTSE 100 telecoms large peaked at 550p in March 2000. Right now, they commerce at simply 73.84p.

That’s a complete fall of 86%, though to be honest, it’s slightly deceptive. World share values have been inflated throughout the board in March 2000, because of the dotcom increase. The tech bubble burst that month and continued to deflate for 2 years, dropping half its worth.

We must always in all probability reward Vodafone for surviving that debacle. Many comparable firms went the best way of the dodo.

Tech crash sufferer

It’s the final decade that worries me. Vodafone shares have dropped 60% over 10 years, because the board battled to get the worldwide behemoth into form. It appears just like the worst is now over. The inventory is up a modest 1.51% over 12 months. Nevertheless, over six months it’s up 14.86%. That’s dizzying by its requirements. Is there extra to return?

I like a supersized dividend yield as a lot as any investor. But I’ve by no means been tempted by Vodafone. There’s not a lot pleasure in getting a ten% revenue if my capital is taking an everyday beating.

Worse, that mighty yield was primarily a product of the falling share price. Shareholder payouts have been slashed by half in 2019 then frozen at €0.09 for 5 years. In its 2025 12 months, dividends can be slashed in half. Right now’s trailing yield of 10.37% is deceptive. It’ll be roughly half that.

Vodafone did barely higher than anticipated in FY24 as natural service revenues rose 6.3%, with Europe, Africa and its Enterprise division all on the up. 

It’s additionally made a heap of disposals, together with the sale of Vodafone Spain, Italy, Hungary and Ghana, and gross sales of its stakes in Vantage Towers and Indus Towers. However the battle to simplify its sprawling operations is way from gained.

FTSE 100 revenue inventory

Complete first-quarter revenues rose 2.8% 12 months on 12 months to €9.04bn, but it surely’s nonetheless a case of 1 step ahead, two steps again. Development in Africa and Turkey was undermined by a slowdown in Europe and falling gross sales in Vodafone’s key German market.

It’s been the same story for years, which is commonly the case for big firms with their fingers in too many pies. Internet margins have been patchy too, as this charts exhibits.

Chart by TradingView

The board expects to generate adjusted EBITDA of €11bn in 2025, however that’s broadly in keeping with final 12 months. Forecast adjusted free money circulate of “at least” €2.4bn is definitely down from €2.6bn in 2024 and €4.14bn in 2023. Nevertheless, disposals play an element on this.

Regardless of its troubles, Vodafone continues to be an enormous world model, and its comparatively new CEO Margherita Della Valle appears to be getting a grip. Trading at 11.51 instances earnings, the shares don’t look that costly, both. And on Wednesday (7 August), it introduced a share buyback programme of up €500m.

I wouldn’t say it’s in deep worth territory, as a result of I believe the board will take a very long time to unleash that worth. However for me, Vodafone is again in play. I gained’t purchase it at this time, as I can nonetheless discover higher prospects on the FTSE 100. However I’m now not ruling it out.