The summary below of the financial results released today show a picture that supports my thesis. Data sales are growing at an annual rate of 13.7% driven by smartphones and video. Sales are down as the European recession bites everyone. But group profits are up reflecting tight cost controls. Emerging markets continue to rise and of course the JV in Verizon is paying back oodles of cash. Even more reason to invest is the announcement of a $2.4bn share buyback. Dividends also rose. This is a long term solid play.
Group organic service revenue H1 -0.4%; Q1 +0.6%, Q2 -1.4%
• Adjusted operating profit H1 +8.5%
• Strong growth in data Q2 +13.7% and emerging markets; challenging markets in
Southern Europe
• £2.2bn free cash flow after ongoing investment in high speed data networks
• Interim dividend per share +7.2% to 3.27p
• £2.4bn dividend from VZW, £1.5bn share buyback announced
• FY 12/13 guidance confirmed
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