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Vodafone Group Plc
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Morgan Stanley
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Bank of America Merrill Lynch
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Margherita Della Valle Vodafone
Thank you, Joshua. It is actually a simple answer because on MDUs, obviously, we have completed the transformation. Therefore, the new law impact is fully behind us. Then on 1&1, we are hitting a run rate now, transfer completed in December. So the €0.1 billion of quarterly revenue run rate is achieved for now onwards. Now this being said, obviously, as we go into a full year of revenues, obviously, this plus the fact that we have entirely lapped another wholesale element, which was the loss of Lyca, will be supportive to our trends next year. But maybe IR can help you with the full equation in more detail. My question is on Germany again, but a little more strategically, we can see the value now and support that the 1&1 deal has given, and it is a very margin-rich wholesale revenue stream. There is obviously a lot of debate in the market around Telefónica’s M&A ambitions and one obvious route for them would be to try and regain control of the asset. I know in the past, you have pushed back a little on your need to compete in such a scenario. But could you just talk to us about how you would consider the value of 1&1 to Vodafone as opposed to the value of market repair. Obviously, you do have a lot of balance sheet headroom right now. You have giving €2 billion back to shareholders in buyback, and this is obviously a critical asset for you guys. I am just interested in how you think about that trade-off if we saw the headline offer from TEF today? Thank you, David. As you know, generally speaking, we do not particularly like to speculate on hypotheticals. Certainly, you raised the point on if consolidation was happening in this direction, how would you see it? To that, I would respond that, first of all, I think it is important to keep in mind a little bit the history of the national roaming agreement. Just to reframe the timelines, we agreed to move the national roaming agreements from Telefónica to us in the summer of 2023. It then took a good 12 months, as you might remember, to transform this agreement into a full-blown contract. After that, we completed the migration effectively in December. So it took 2.5 years from decision to full migration. What if consolidation was happening in a direction that would bring the national roaming agreement outside of our perimeter? The way to think about it from our perspective is on a mid-term, again, timing is relevant. From a mid-term perspective, there would be, of course, a risk on those revenues. By the way, keep in mind, those revenues would not anyway remain exactly at the same level as today, as 1&1 progresses its network build. But there would be a risk to those networks. The risk, as you mentioned, should be seen in conjunction with the conditions of the consolidation. Again, it is incredibly difficult to speculate today. But in any consolidation play, there are some changes. Those changes affect market dynamics. There is always a range of puts and takes that we would have to consider if that hypothetical in the mid-term was playing out. That is as far as I can speculate with you today.
David Wright Bank of America Merrill Lynch
Margherita Della Valle Vodafone
David Wright Bank of America Merrill Lynch
I appreciate that answer, Margherita.
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