3 FTSE Telecom Stocks in Focus as Vodafone’s Spin Off Vantage Makes Its Debut

by Scarlett S. Stock Market Analyst

Summary

Telecommunications giant Vodafone Group Plc said its EU-based towers arm Vantage Towers is set to float on the Frankfurt stock exchange valued at EUR 12.1 billion

Vodafone will net up to EUR2.3 billion as Vantage Towers’ begins trading today

British multinational telecommunications giant Vodafone Group Plc (LON: VOD) said on Wednesday 17 March, its European mobile phone towers arm Vantage Towers will be valued at around EUR 12.1 billion, as it is slated to float an initial public offering on the Frankfurt bourse today, 18 March.

Vantage Towers’ shares will be priced at EUR24.00 per share, with Vodafone set to place 95.8 million shares. The IPO will net the British telecommunications major up to EUR2.3 billion.

Vodafone Group Plc’s (LON: VOD) shares closed at GBX 136.56, up by 1.52 per cent on 17 March, while the FTSE 100 index, which it is a part of, closed at 6,762.67, down by 0.60 per cent. The company’s market cap stood at £38.698 billion while its 1 year return stood at 27.21 per cent.

Here are 3 other telecommunication FTSE stocks to look at with 1 year returns of over 25 per cent:

BT Group plc (LON: BT.A)

UK-based telecom giant BT Group plc’s (LON: BT.A) mobile arm EE is primarily paying up to £452 million in the first stage of UK’s 5G auction in 700MHz and 3.6-3.8MHz band. EE was allocated up to 33 per cent bandwidth for both offers.

The FTSE 100 listed telecom major BT Group’s (LON: BT.A) stock price closed at GBX 152.50, up by 6.49 per cent on 17 March, while the UK telecommunications sector index closed at 1,816.08, up by 5.64 per cent for the same period. The company’s market cap stood at £15.124 billion while its one year return stood at 25.83 per cent.

Airtel Africa PLC (LON: AAF)

FTSE 250 constituent, telecom company Airtel Africa PLC (LON: AAF) Africa reported its net profit increased by 13.1 per cent to $116 million in Q3 2020 on year-on-year (y-o-y) basis. The rise was due to growth in company’s average revenue per user metric.

Airtel Africa‘s also reported its revenues rose by 17.2 per cent on y-o-y reported basis and increased by 22.8 per cent to $1.034 billion in constant currency basis in Q3 2020.

Airtel Africa PLC’s (LON: AAF) shares closed at GBX 84.00, up by 2.19 per cent on 17 March, while the FTSE 250 index, which it is a part of, closed at 21,558.55, down by 0.95 per cent for the same period. The company’s market cap stood at £3.157 billion, while its 1 year return stood at 152.86 per cent.

Gamma Communications PLC (LON: GAMA)

FTSE AIM UK 50 listed company, Gamma Communications PLC (LON: GAMA) announced the acquisition of Mission Labs on 8 March, as part of Gamma Communications’ long term growth strategy to increase cloud communications capabilities in the UK and the EU. Mission Labs is a Unified Communications and a Service technologies firm. The news was announced by Gamma Communications’ subsidiary company VozTelecom.

Gamma Communications’ (LON: GAMA) shares closed at GBX 1,615.00, down by 0.31 per cent on 17 March, while the FTSE AIM UK 50 index, which it is a part of, closed at 6,485.97, down by 0.72 per cent for the same period. The company’s market cap stood at £1.541 billion, while its 1 year return stood at 59.90 per cent.