Vodafone Group plc (LON:VOD) (LSE:VOD.L) has released news of two partnerships today. The first is a renewal of the strategic partnership with TDC Group for Denmark and Norway, which builds on a 15 year relationship.
The renewal commenced on 1 January 2017 and will see TDC’s customers continue to use Vodafone’s 4G network for things such as mobile voice and data roaming, as well as high speed data. Similarly, Vodafone’s customers in Denmark will be able to utilise TDC’s mobile network for the same services.
The extension of the partnership will enable multinational companies in Denmark and Norway to have access to a range of Vodafone’s enterprise services, including IOT and secure communications for mobile devices.
The second partnership announced today is between Vodafone and Tele2 for Sweden, Latvia and Lithuania. It commenced on 1 January 2017 and will see multinational customers of Tele2 in those countries have access to a range of Vodafone Global Enterprise Solutions. The partnership will also allow the two companies to support international enterprise customers that seek to purchase services centrally across multiple markets.
Since the start of the year, Vodafone’s share price has risen by 4.5%. That’s ahead of media peers BT Group plc (LON:BT.A) (LSE:BT.A.L), Sky PLC (LON:SKY) (LSE:SKY.L) and Talktalk Telecom Group PLC (LON:TALK) (LSE:TALK.L). BT is up 4.3%, Sky has risen by 0.5% and Talktalk is down 4% year to date in 2017.
In my view, today’s partnership announcements are good news for Vodafone. I feel the company has growth potential and it has the financial strength and strategy through which to deliver on this. It is a well-diversified business which has historically offered a relatively high yield. While competition within the media space remains high, I believe it could continue to perform well on a relative basis versus its sector peers.