Vodafone says will not keep capex higher after three-year boost
LONDON, Sept 3
LONDON, Sept 3 (Reuters) - British mobile company Vodafone said it did not plan to increase capital expenditure beyond a three-year spending boost using some of the proceeds of the $130 billion sale of its stake in Verizon Wireless.
"This does not have an impact on the underlying run rate (of capex)," Vodafone's Chief Financial Officer Andy Halford told analysts on a call on Tuesday.
"A lot of what we spend here is taking the level of 4G coverage to 90 percent in big markets and updating stores, so they are not recurring costs. It's hard to predict four years out but you should think of this 6 billion (pounds) as turbo-charging our capex, not a step up permanently."
On the same call, Chief Executive Vittorio Colao said he did not rule out expanding into new countries, but the priority was strengthening its existing operations.
"If there is value we will consider it, but our main focus is the strategy we declared to focus on our existing footprint," he said.
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