It’s tough to believe Vodafone (LSE: VOD) Actions once changed their hands for almost 5.50 £ just after the turn of the millennium. Today FTSE 100 Telecommunications actions are the shadow of the former self, and the price of the action decreases below 70p.

After 18 months of investigation in the matter of competition and markets (CMA), the company secured the long-awaited regulating approval for a connection with a competing three in Great Britain in December last year. A Joint Venture is expected to appear in a failed stream.

But how did this message influenced long -term patients’ investors in Vodafone actions who had significant losses?

Six -month performance

In October 2024, an investment 10,000 GBP in Vodafone could buy 13,329 shares. Unfortunately, news about the approval of the merger seems to have a little impact on the trajectory of the action. This farm was worth 9250 pounds today.

At least the fleeting payment of a dividend of $ 2,51.39 would slightly alleviate the blow. But investors would still have almost 500 pounds in red. Even worse, this distribution meant a giant 50% reduction from the same last year. An uncomfortable reminder that no dividends are guaranteed.

Recovery of share prices

To be forthright, a lot travels in connection with three. It seems not much to do much for Vodafone. The escalate in revenues from services in Europe is stagnant, reduced with particularly indigent efficiency on the key German market – the source of over one third of the group’s sale.

Legal changes have completed television contracts in German apartment blocks. This is a huge factor for a 6.4% decrease in revenues from Vodafone services in jurisdiction. Among the households caught by the novel law, the company lost more than half of its clients.

The balance is another massive problem. Net debt of 26.4 billion GBP is an uncomfortably high responsibility for a company with market capitalization by 9.2 billion GBP less than this number. It is not surprising that the group escaped about dividend cuts, as well as the sale of Spanish and Italian companies.

On the other hand, growth in Türkiye and Africa accelerates. These markets may be more and more vital for recovery at the price of Vodafone shares – if it is to materialize at all. Closer to the house, it is good to see how revenues also recover in Great Britain, which are responsible for almost one -fifth of total sales.

And then we return to the merger. The connected entity will have 27 mm of customers, which makes it the largest mobile network in Great Britain. Theoretically, this should provide the group with significant benefits of the scale and improvement of performance. In addition, plans to launch a television service can aid in customer retention. So there is some room for optimism.

I’m not convinced

However, I do not think that the connection is sufficient to satisfy my basic fears about the health of Vodafone. This is a hefty enterprise that lose millions of customers on the basic market. Even worse, massive dividend cuts significantly reduce the reference to the passive income of the action.

Investors of the Vodafone campaign undoubtedly hope that the next six months will be more positive. Their faith can be approved, but I will not join their company yet. In general, I think that many other FTSE 100 shares have a more convincing investment matter today.