2023-07-24 11:14:29
Vodafone’s revenues in Spain amounted to 965 million euros in the first fiscal quarter (from April 1 to June 30), which means 2.3% less than in the same period last year, according to the accounts presented by the company this Monday. In this way, the rise in prices – the operator decided to link its rates to the rise in the CPI – has managed to stop the collapse of income of previous quarters when the fall approached 10% in the third part of 2022 and exceeded 4% in the fourth.
Much of the improvement came from service revenues, which reached 871 million euros, a 3% drop compared to a year ago but which represents a change in trend compared to previous quarters, which almost reached 9% in the third quarter of 2022. The operator highlights that the situation has improved thanks to the “stabilization of service revenues and higher revenues from terminal sales.”
Therefore, from the telco they indicate that the rise in prices has benefited the change in trend, despite the fact that it has led to the loss of customers. Specifically, the Spanish subsidiary, which accounts for 10% of the group’s total income, lost 87,000 mobile customers and 65,000 broadband customers due to this rate increase. In total, the operator has 13.5 million mobile customers and 2.8 million broadband customers in Spain, while in television the user base fell to 1.4 million after losing 33,000 customers. The only segment that gained share was Lowi, its low-cost brand, which gained 13,400 lines.
change of course
With the appointment of the new CEO in Spain, Mario Vaz, the aim is to reformulate the operator’s strategy to consolidate a management model that boosts the business. The new CEO has chosen a few months ago Federico Colom as the new director of Strategy and Transformation, precisely to accelerate the commercial competitiveness of the company. Colom was the financial director of Orange Spain that piloted the merger agreement with MásMóvil.
Only two months ago the operator announced that it would cut 11,000 jobs in Europe and that the Spanish subsidiary was being put “under review”. The three-year restructuring plan was based on the results of its last financial year, with an Ebitda 3.6% lower than that of a year ago.
It is still unknown how this reduction in personnel will be distributed in its different subsidiaries and the operator indicated that the reduction will begin with the corporate center they have in Germany and Italy. In Spain, the operator has almost 4,000 workers, but the company has not wanted to comment on how this restructuring will affect the subsidiary.
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