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Vodafone to cut mobile masts loose in €18bn spin-off

Britain’s Vodafone has made plans of flogging off its massive masts business across Europe in the following 18 months, the company revealed via its 2019’s first quarter result.

The mobile operator reported a drop in its overall revenue to €10.6 billion for the first quarter while the total sales in the UK increased 0.1% to €1.57 billion.

The Chief Executive of Vodafone Group, Nick Read said that the business has began preparations for an array of substantial monetization options, which includes a possible IPO of a new standalone company called TowerCo after heading to separating the masts legally.

The planned entity, which is expected to be worth over €18 billion, would generate around €1.7 billion in the form of revenues and €900 million in the form of profits that would help to lower Vodafone’s debt, Read said.

For 2018’s results ending March 31, Vodafone said that the company’s net debt stayed at €27 billion.

Under the new proposals, TowerCo will comprise of 61,700 masts sites, with nearly 75% of the sites located in Spain, Italy, the UK and Germany.

Apart from this, the telco has also introduced 5G roaming across 55 cities and towns in Germany, Italy as well as the UK. However, the coverage stays limited as the company just shifted on to 5G connectivity across Britain in this month.

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