Also, a spreads account will let you access short term daily markets. Please note that all such accounts are subject to credit, status and suitability checks.
If your account application is approved then, after logging on, you will be able to check the live charts and prices. On most platforms, these are free. So what's the catch? You'll probably receive an occasional sales call and/or email from your online spread betting firm.
Of course, if you do decide to trade, remember that CFD trading and financial spread betting carry a significant level of risk to your funds and you can lose more than your initial deposit.
With the telecoms firm remaining one of the largest firms in the UK, IG takes a look at the latest investment in infrastructure, the push for media content and the outlook for the share price.
[9:04am] Rising Vodafone Forecasts Ring True with Investors
Vodafone edged up core forecasts after reporting a strong advance in quarterly revenue.
A hint of a rebound in earnings was exactly what shareholders wanted to hear and they sent the stock around 4.5% higher at the open.
However there remains a lack of clarity over the firm's dividend policy and acquisition strategy, and these issues should remain in investor sights for the time being.
Vodafone's second-quarter organic service revenue was 1.5% lower, but it beat consensus forecasts of a fall of 2.8%, which gave CEO Vittorio Colao enough confidence to say that earnings had begun to stabilise.
Full-year core earnings guidance was increased to between £11.6bn and £11.9bn from the £11.4bn before.
The results suggest intense competitive pressures in European markets may be easing.
Service revenues were still negative in Germany, Italy, Britain and Spain, but all improved quarter-on-quarter.
Clarification Needed on Dividend and M&A
There are two major points Vodafone needs to clarify to give shareholders a second wind of confidence off the back of these numbers.
First, the potentially 'uncovered' dividend after the loss of the Verizon Wireless earnings.
No doubt Vodafone could fund the dividend without cuts, but clarity is required on this front.
Secondly, the possibility of more acquisitions: potential targets may include Italian broadband operator Fastweb and German cable group Versatel.
The market signalled satisfaction with Vodafone's progress, though the price may arguably have run ahead of early impetus already.
Still, for the immediate-to-medium term, the stock appears to be on a mission to return to the higher values seen earlier in the year as quickly as possible, and that offers the chance of additional upside today.
Will Vodafone Call BSkyB for a Deal?
With Vodafone set to report, the firm has braced investors for a decline in earnings as it invests in infrastructure.
Investors will be looking for more detail on a potential deal with BSkyB and other media content providers.
Update by Alastair McCaig, Market Analyst,
Vodafone Shares Up on Phones 4 U Pickings
Vodafone shares are trading higher on reports that it and EE have been in touch with liquidators of Phones 4 U on buying up assets including shops, staff and inventories.
Phones 4 U founder John Caudwell described the companies as “ruthless” and probably hasn’t altered his opinion on the news they are picking on the Phones 4 U carcass after “moving in for the kill”.
Update by Jasper Lawler, Market Analyst,
[3:39pm] Vodafone Uses War Chest to Buy Spanish Ono
One of the factors helping sentiment today is the announcement that mobile telecoms giant Vodafone has announced a deal to buy Spanish cable provider Ono for €7.2bn.
The firm is seeking to reposition itself and enhance its fixed line infrastructure and content services across Europe in order to create a multi-channel content driven fixed line network to supplement its mobile 4G services.
Having paid €7.7bn for German cable company Kabel Deutschland at the end of last year, it appears that CEO Vittorio Colao is using his $25bn Verizon war chest to go on an acquisition spree.
It seems likely that this could be the latest in a number of acquisitions, with speculation that the company could also look to do something similar in Italy, where it has a strong mobile presence.
It may also look to expand here in the UK as well, though speculation that some form of deal could be in the offing for Channel 5 was ruled out, not really a surprise given that it has no fixed line infrastructure to speak of.
This acquisition spree which was originally flagged up at the end of last year as part of Project Spring is an integral part of a strategy to take the company away from its roots and diversify itself into a quad play operator of mobile, broadband, landline and TV services.
There has been some speculation that Vodafone might be tempted to look towards BSkyB sometime in the future, which would make more sense given its broadband client base and its rich content.
However, this was also played down by Mr Colao who stated that in the UK the company was only focussed on commercial agreements, though he did leave himself some wriggle room by adding 'for the time being'.
Update by Michael Hewson, Senior Market Analyst,
[10:15am] Vodafone Bids for Ono
Vodafone have attempted to boost revenues and eat into its huge cash pile from the Verizon deal by bidding €7bn for Spanish cable company Ono.
The firm is already in talks with Liberty Global about a possible deal, but Vodafone could have a bit too much firepower if any bidding war emerged.
The move will be welcomed as a sign of intent on the one hand, but still leaves Vodafone heavily reliant on a flagging Europe having lost their major revenue source outside the zone in the Verizon deal.
Vodafone up 3.7%
The rise was seen on Thursday as their third-quarter earnings fell less than expected.
Concerns regarding the company’s earnings were based on weakness in the European market rather than emerging markets.
Yet there are a number of reasons for Vodafone to be optimistic as the company sees regulatory pressure in Europe easing off together with the increasing demand for 4G services.
The company is also in the middle of a deal with Verizon, which will hopefully see an increase in network investments.
Hence, despite the stock opening up at 223.00, slightly below yesterdays close at 223.900 investors seem optimistic about future revenues.
Update by Nick Dale-Lace, Senior Sales Trader,
[10:37am] Vodafone -5.36%
Shares have fallen sharply in early trading on Monday after AT&T revealed it will not be making an offer for the company. Due to UK takeover rules, AT&T will now be unable to make a bid for the company within 6 months.
Update by Sam Fox, Trader,
[10:41am] Vodafone +2.16%
On what is a rather slow day for the markets, Vodafone is one of few stocks enjoying high volume and is in fact the only equity trading over 2% higher this morning within the FTSE 100. This comes following reports last night that AT&T is considering a takeover of the phone company next year. American AT&T is keen to invest in Europe, and is believed to be working on plans for Vodafone's European operations should a deal be made.
Update by Max Cohen, Trader,
[10:38am] Vodafone down 2.5%
Vodafone shares trade over 2 percent lower after they completed the 45% sale of Verizon Wireless to US telecoms group Verizon Communications in one of the biggest deals in corporate history.
Update by Lee Mumford, Trader,
[10:41am] Vodafone Group up 3.8%
Vodafone shares up another 3 percent as they await Verizon wireless sale which could be announced later today. Developments over the weekend have shown the board of Vodafone have approved in principle a deal to see its 45% stake in Verizon Wireless to Verizon Communications.
Update by Lee Mumford, Trader,
[1:49pm] IG take a 3 minute look at the current Vodafone move:
Update by Alastair McCaig, Market Analyst,
[10:28am] Vodafone up 8.5%
Vodafone has confirmed today that it is in talks with Verizon Communications to sell its 45% stake in their joint venture company Verizon Wireless. Talk between the two parties have cooled off in recent months but now it seems talks have reached a more serious level. The deal will likely cost Verizon well over $100 billion who are apparently in discussions with banks to get the finances to make the deal.
Update by Lee Mumford, Trader,
[8:18am] Will Vodafone Sell Its Verizon Wireless Stake?
Since the beginning of this year, Vodafone's share price has enjoyed gains of over 20%, while also paying one of the highest dividends on the benchmark index.
A lot of this positive performance has been driven by the recent turnaround in its US business.
It is therefore somewhat surprising that the company is considering the disposal of this potentially lucrative part of the business.
This year's share price performance is therefore pretty decent given the companies well documented problems in Southern Europe, where it has had to absorb some pretty eye watering losses due to sharp contractions in GDP and rising unemployment.
The company's exposure to India hasn't been entirely trouble free either, with a long running dispute with the Indian government over its tax bill, however revenues are growing there and in Turkey.
These problems have increased the pressure on senior management to diversify their exposure from mobile communications into the fixed line space in Europe.
Diversifying to Fixed Line
The company's deal to buy German cable provider Kabel Deutschland for €7bn earlier this year and, all being well, set to be concluded in October, may have raised some eyebrows given that Vodafone also took part in one of the biggest and expensive acquisitions of another German giant in 1999.
The deal would give Vodafone access to 8.5m households in Germany, though the deal could still be scuppered by a counter bid by Liberty Global, who recently bought Virgin Media.
This offers much more in the way of revenue growth in an area where it is much easier to deliver additional services like TV and broadband services.
However, in an environment when mobile costs are getting squeezed across Europe due to the implementation of the European roaming charges directive, and the shrinkage of its previously lucrative Italian and Spanish businesses, the pressure has been increasing for management to act to diversify.
At the end of last year, the company took a €5.9bn write down due to the deepening recessions in Italy and Spain, and prompting concerns about the company's ability to generate returns, across all of its regions.
This week's management statement is likely to point to further declines here.
Too Reliant on the US?
One of the silver linings has been its 45% stake in Verizon Wireless, which has just now started to pay dividends.
This has raised concerns that the company was becoming too reliant on its US business in offsetting its losses in Europe, at the same time as seeing its debt pile increasing.
This has caused some investors to consider the options of offloading its Verizon Wireless stake, with the amount being touted with respect to such a disposal being in excess of $100bn.
Verizon Communications, Vodafone's partner in the venture is being touted as a possible buyer willing to buy out the remaining 45% stake.
Speculation had increased in the wake of the Kabel deal that a deal could be in the offing as the company looks to free up cash to push down its debt pile and acquire some more fixed line assets.
As things stand, Vodafone has already made inroads in terms of acquiring assets for fixed line diversification with its £1bn acquisition of Cable and Wireless UK last year.
This integration appears to be well on course, with the company set to become the second biggest combined fixed and mobile operator in the UK after BT Group.
If the Kabel deal goes through, this would also put the company in a similar position in Germany behind Deutsche Telekom.
July's trading update appeared to dispel the pressure on Vodafone management to consider an offer for its Verizon business despite the healthy dividend cash flows it has received in the last couple of years, which makes this morning's news rather unexpected.
Any sale could present management with a large tax headache given the amounts at stake and this could well be an obstacle to a sale given the current hostile and febrile atmosphere surrounding corporate tax planning.
How they intend to resolve this issue will be a key factor in the success or otherwise of these talks.
One of the key questions here will be in terms of the amount of cash made available, and how much any deal will compensate for the loss of the potential future revenue stream that Verizon Wireless could bring.
How it handles this problem if the deal goes through will determine how much cash it has at its disposal for further acquisitions in what is becoming a very competitive market place.
Update by Michael Hewson, Senior Market Analyst,
[10:59am] Vodafone -1.17%
Vodafone Group made a multimillion-pound payment to British tax authorities to end a dispute over an Irish subsidiary. Accounts filed by Vodafone in Dublin show the mobile phone company settled with HM Revenue and Customs in 2009. The dispute centred on the subsidiary, Vodafone Ireland Marketing Ltd, which was set up to receive royalty payments. While the unit had no employees, it had a turnover of 380 million euros ($506.4 million) a year.
Speculating on the financial markets involves a degree of risk. Having said that, if you'd like to try an entirely free Demo Account, that lets you trial spread betting on a large range of markets, please see below for more details.
When considering which trading option might work for you, don't forget that, in the UK, spread trading is currently free of income tax, capital gains tax and stamp duty*.
If you want to try a low cost spread trading site, you should keep in mind that you can trade Vodafone without paying any commissions or brokers' fees with:
All of the above spread betting companies currently offer a free Test Account which lets investors practice with an array of trading orders, try out trading ideas and use charts.
How to Spread Bet on Vodafone?
If an investor wants to invest in UK listed companies such as Vodafone then one possibility could be spread betting on the Vodafone share price.
Looking at a spread trading platform like FinancialSpreads, we can see they are pricing the Vodafone Rolling Daily market at 176.9p - 177.2p. This means you can put a spread bet on the Vodafone shares:
Moving above 177.2p, or
Moving below 176.9p
Whilst financial spread betting on UK equities you trade in £x per penny. So, should you decide to risk £5 per penny and the Vodafone share price moves 31p then that would change your P&L by £155. £5 per penny x 31p = £155.
Rolling Daily Shares Markets
An important aspect of this Rolling Daily Market is that unlike a normal futures market, there is no settlement date. If your trade is open at the end of the day, it just rolls over into the next session.
If you do roll over a position and you are spread betting that the market will:
Rise - then you will often be charged a small financing fee, or
Fall - then you'll normally receive a small credit to your account
Vodafone Rolling Daily - Shares Spread Betting Example
So, if we think about the spread of 176.9p - 177.2p and make the assumptions:
You have done your equities analysis, and
Your analysis leads you to think that the Vodafone share price will move above 177.2p
Then you could buy a spread bet at 177.2p and risk, let’s say, £20 per penny.
With such a spread bet you make a profit of £20 for every penny that the Vodafone shares go higher than 177.2p. However, you will lose £20 for every penny that the Vodafone market falls lower than 177.2p.
Put another way, if you were to ‘Buy’ a spread bet then your profits (or losses) are calculated by taking the difference between the closing price of the market and the initial price you bought the market at. You then multiply that price difference by the stake.
Therefore, if after a few hours the shares rose then you might consider closing your spread bet in order to lock in your profit.
So if the market moved up then the spread might move to 182.5p - 182.8p. To close your trade you would sell at 182.5p. Therefore, with the same £20 stake your profit would be calculated as:
Profit = (Settlement Price - Initial Price) x stake
Profit = (182.5p - 177.2p) x £20 per penny stake
Profit = 5.3p x £20 per penny stake
Profit = £106.00 profit
Speculating on shares, by spread betting or otherwise, doesn't always work out as you would have liked. In the above example, you wanted the share price to increase. Naturally, it can also decrease.
If the Vodafone stock decreased, contrary to your expectations, then you could close your position to stop any further losses.
So if the market dropped to 171.0p - 171.3p you would close your position by selling at 171.0p. That would mean you would lose:
Loss = (Settlement Price - Initial Price) x stake
Loss = (171.0p - 177.2p) x £20 per penny stake
Loss = -6.2p x £20 per penny stake
Loss = -£124.00 loss
Note: Vodafone Rolling Daily spread quoted as of 19-Oct-12.
'Vodafone Spread Betting' edited by Jacob Wood, updated 28-Nov-14
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Vodafone Spread Betting
Vodafone spread betting and trading guide with live VOD prices and charts. Plus, daily updates, broker recommendations on Vodafone, where to spread bet on the UK shares tax-free* and commission-free, how to trade... » read from top.