European telecommunication giant
) and Polish operator Polkomtel jointly announced that they have
entered into a new partnership that will allow Vodafone to
improve its services in Eastern Europe.
The non-equity partnership agreement will be beneficial for
Vodafone's multinational customers as Poland will be added to
their existing contracts for international services. This will
raise the company's Partner Market agreement in the region to
Vodafone's Partner Market is a program in which the company
enters into a partnership with a local mobile carrier in a
country, where the group doesn't have any exposure. Under the
program, Vodafone cooperates with its partner to market certain
products and services, which are often developed jointly.
Polkomtel will benefit from collaborating with a big company
like Vodafone and will be able to offer more than its competitors
to its business and retail customers. Polkomtel, which operates
under the brand 'Plus' in Poland, has a customer base of over 14
Notably, Vodafone was a minority shareholder of Polkomtel.
However, in an attempt to realize the value of its non-controlled
assets, the company sold its entire 24.4% stake in Polkomtel, in
In the recently concluded quarter, Vodafone declared weak
financial results where consolidated revenues declined 1.8%,
mainly based on lower revenues from European operations.
Before the deal, Vodafone had partner agreements with six
different nations while they have operations in only four
European countries. We believe that this is a strategic move by
the company to enhance its presence in Eastern Europe, without
any major investments as the company will be offering its
services via the local partner's network.
Vodafone currently carries a Zacks Rank #3 (Hold).
Other Stocks to Consider
Some other stocks in the European telecommunication industry
Telecom Italia S.P.A
Liberty Global Inc.
). Liberty and Telecom Italia currently has a Zacks Rank #2 (Buy)
while Telefonica currently carry a Zacks Rank #3 (Hold).
LIBERTY GLBL-A (LBTYA): Free Stock Analysis
TELEFONICA S.A. (TEF): Free Stock Analysis
TELECOM ITA-ADR (TI): Free Stock Analysis
VODAFONE GP PLC (VOD): Free Stock Analysis
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