Friday preview: Vodafone reports first quarter trading update

Vodafone reports its first quarter trading update on Friday with analysts expecting a slowdown in organic service revenue growth from the previous three months.

Deutsche Bank expects a 1.9% increase in organic service revenue in the first quarter, easing from the fourth quarter’s 2.5%. The last quarter benefitted from accounting changes and the leap year.

“These benefits no longer accrue in the first quarter, which further suffers due to roaming rate reductions,” Deutsche Bank analysts said.

“Whilst individual markets may move backwards near-term (e.g. UK) we view the broad trend for further top-line recovery in fiscal year 2017 alongside a healthy yield, as likely to boost Vodafone's rating.”

Deutsche Bank said the company continues on an “improving growth path” in Europe with both volume and price trends encouraging. Europe’s mobile service revenue growth was still negative with a 1.1% decline in the fourth quarter but a 1pp improvement on the previous period.

“We expect a return to mobile growth during fiscal year 2017, though the UK’s contribution will deteriorate in the first half.”

Meanwhile, analysts will eye any update on its joint venture (JV) with Liberty Global.

Earlier in the week, the company said Vodafone's Jeroen Hoencamp has been appointed chief executive and Liberty's Ritchy Drost as chief financial officer of the proposed JV of Vodafone Netherlands and Liberty's Ziggo. which The JV, which was announced in February, remains subject to approval by relevant competition authorities.

Friday 22 July

INTERIM DIVIDEND PAYMENT DATE
One Media IP Group, Paragon Group Of Companies, RWS Holdings, Urban&Civic , Zytronic

QUARTERLY PAYMENT DATE
Alpha Real Trust Ltd., BlackRock Income Strategies Trust , Real Estate Credit Investments PCC Ltd

FINALS
Accrol Group Holdings

ANNUAL REPORT
Naspers Ltd. ADR

SPECIAL DIVIDEND PAYMENT DATE
Castings, JPMorgan Income & Capital Inv Trust, Northern 2 VCT, Real Estate Credit Investments PCC Ltd

AGMS
Alpha Returns Group, Axis Bank Ltd GDR (Reg S), Big Yellow Group, Big Yellow Group, Cloudbuy, Hogg Robinson Group, KCOM Group, Lead All Investments Ltd, Magnolia Petroleum, Telecom Plus

FINAL DIVIDEND PAYMENT DATE
3i Group, Amati Vct 2, Aurora Investment Trust, BGEO Group, Capital Gearing Trust, ICAP, Northern 2 VCT, Northern Investors Co, Octopus AIM VCT, Premier Technical Services Group , Severn Trent, Sprue Aegis, Templeton Emerging Markets Inv Trust, Tex Holdings, Wynnstay Properties