Vodafone Group ADR

This is our first report on a telecommunication giant, Vodafone Group ADR. The company produced a resilient financial performance in 2022. Despite a downturn in Europe, partially offset by a stronger performance in Turkey and Africa, Vodafone’s service revenue remained constant at 2.5%. They are making strong progress on their operational and portfolio priorities, such as forming a joint venture in Germany for their fiber-to-the-home construction and making big IT and network enhancements there. They also completed the Towers transaction, which satisfied their three strategic goals at a competitive price of 26x EBITDA. Besides that, Vodacom has strong growth rates and is investing in the financial services sector, which is expanding by over 20% annually. We initiate coverage on the stock of Vodafone Group with a ‘Buy’ rating.