Vodafone''s capex warning was clearly the main new news at FY21 results In pricing the shares down 9% the market has taken this higher capex (more on this below) and assumed no incremental return, which given the track record of the sector is perhaps fair for now. The good news is looking ahead to the next 12 months there are good reasons to believe Vodafone''s top-line can improve: 1) Vod has been a relative COVID loser in telcos and 2) The incremental capex is geared towards capturing new growth arising from COVID and the EU Recovery Fund. The opportunity is hard to quantify and model, but our recent work suggest there is incremental growth on offer in these areas (Rule of Seven, Need for Speed, Flight to Quality) giving us some solace that Vodafone are investing in the right areas to underpin new revenue guidance. What do we know today that we didn''t on Monday? Vodafone will spend c. EUR8.2-EUR8.3bn of total capex in FY22; up c. EUR900m from pre COVID levels (roughly split 1/3rd for Vantage growth capex, fixed network capacity and B2B/Digitisation efforts). Vodafone guided to EUR5.2bn of FCF ex-Vantage growth capex for FY22 - with c.EUR260m of Vantage growth capex on our FY22 numbers, this implies Vodafone FCF will be c.GBP5bn, c.8% below pre results consensus. The step up in spend gave management additional confidence to lay out medium term ambitions for revenue growth in Europe/Africa, MSD EBITDAaL and Adjusted FCF growth (excluding Vantage growth capex). We remain Outperform, but Vodafone are under pressure to deliver We argued Vodafone were entering a period of accelerated top-line growth, critically with a return to growth in Europe (now confirmed in guidance). Having cautioned mobile capex may need to step up (Vodafone''s quality edge vs peers had eroded) we believed this risk was already in numbers post the Vantage IPO (Quality Growth). We were wrong. Clearly additional capex spend is needed. The good news is that the stock is...