VOD SJ
Vodacom Group Limited
TMT
06/03/2013
Presented
| Date | 05/30/2013 |
| Price | ZAR115.83 |
| Market Cap | $14.20B |
| Ent Value | $14.83B |
| P/E Ratio | 15.53x |
| Book Value | ZAR1.28 |
| Div Yield | 5.94% |
| Shares O/S | 1,464.82M |
| Ave Daily Vol | 2,490,000 |
| Short Int | N/A |
Current
| Price | ZAR107.76 |
| Market Cap | $17.66B |
| Vodacom Group Limited engages in the operation of cellular network in South Africa and internationally. It provides voice, data, messaging, broadband, and converged services to approximately 47.8 million customers. The company offers roaming, voice mail, entertainment, insurance, and BlackBerry services, as well as M-Pesa, a proprietary mobile money transfer service. It also provides network and Internet services comprising Internet, fixed line, wireless, mobile, and virtual private network services; business solutions comprising hosted exchange, video collaboration, business applications, security solutions, data back-up and storage, and data recovery services; hosting services, such as physical and virtual hosting, office in the cloud, and domain name services; voice services, including voice over Internet protocol, mobile voice, hosted call centre, and IP PBX, a telephone switching system within an enterprise; and mobile value-added services, mobile applications, and mobile health. In addition, the company offers broadband access, mobile Internet, and satellite connect services; hosted exchange and Microsoft Office 365 solutions; Web hosting and packages; and mobile applications, mobile packages, and wireless application service provider services. Further, it provides a range of devices to access the Internet, such as smartphones, mobile broadband modems, tablets, netbooks, Wi-Fi routers, and laptop computers. Vodacom Group Limited distributes its products and services to individual, corporate, and SMME customers primarily through national chains, franchise stores, and independent service providers, as well as informal distribution channels, such as wholesale dealers; and through its online channels and call centers. The company was founded in 1993 and is headquartered in Midrand, South Africa. Vodacom Group Limited is a subsidiary of Vodafone Group Plc. |
Highlights
Vodacom (VOD) is the largest South African telecom company, and is 65% controlled by Vodafone (VOD LN). The presenter is bearish on VOD for a number of reasons, including its ARPU cost (5x-6x that of any US/ European player), and pressure from its largest competitor (Cell C South Africa). He outlined the following factors supporting his opinion:
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