This is total speculation....
The losses from 6 months ago were still pretty massive.
A turnaround is definitely underway and I think it will be successful...
However the losses were pretty huge and I question their ability to return it to profitability so quickly.
That's not taking anything away from the people in charge, I think they have done what they have to do and have done a great job.
The other thing in the back of my mind is that Vodafone should be preparing this for sale. Doesn't mean that it has to be sold, but it should be a lean mean machine, making as much money as possible...
Its possible to engineer profits and losses by moving some revenue and costs around, of course this is regulated so you cant get too creative, but moving $50M either way probably possible...
So here is the thing.... this year already has a big loss.... Even if they are profitable right now its unlikely they will report a profit for the whole year.
To prepare the company for sale it is probably better to make this year look as bad as possible and make next year as good as possible.
Items such as Network impaired assets a good place to start to increase one off costs as much as possible.
My expectation is increased subscriber numbers, more losses..... possibly the last annual loss, so expect write downs to make next year look good.
HTA Price at posting:
6.5¢ Sentiment: None Disclosure: Not Held
