A new tactic for Vodafone in an attempt turn its fortunes around.
The mobile phone provider's new boss has made the call to slash its payout to share holders by 40 percent
and will focus on securing the assets it needs to build 5G networks and complete its acquisition of multinational telco Liberty Global assets.
Nick Read, who took charge of Vodafone in October, said payouts would be "rebased" to 9 euro cents from 15.07 euro cents.
The debt-heavy company reported revenues down over 6 percent to around 49 billion dollars for the year to the end of March
and an operating loss of 1.07 billion dollars.
Read partly blamed that on intense competitive pressure in Spain and Italy... and the rising cost of auctions for 5G.
But that's not the only issue
In the last year, Vodafone's stock has fallen 37 percent as investors fear the cost of acquiring cable assets across Europe... As well as the heavy cost of 5G.
But slashing dividends should, according to Vodafone, free up cash flow of over 6 billion dollars by next year.
Investors showed mixed feeling on the new direction
Shares were down 2 percent on market opening, before recovering and then gaining over 2 percent.