Revenues are falling in important markets.
(Foto: Bloomberg)
London Vodafone is cutting jobs due to customer dwindling in key markets. The British mobile operator announced on Wednesday that sales growth in the third quarter of the 2022/2023 financial year weakened to 1.8 from 2.5 percent in the previous quarter.
In Germany, revenues fell by 1.8 percent. In Italy and Spain, the minus amounts to 3.3 and 8.7 percent. Interim boss Margherita Della Valle therefore announced that 500 jobs would be cut at the group’s headquarters.
On the London Stock Exchange, Vodafone shares then fell by more than three percent at times, as much as two and a half months ago. “The numbers seem to show that a change in leadership will not solve the fundamental problems,” commented investment strategist Michael Hewson of brokerage firm CMC Markets. Della Valle replaced Nick Read at the end of 2022. She did not want to comment on the search for a permanent person for the post on Wednesday.
Della Valle reiterated the full year targets. “We have already taken steps, including simplifying our structure, to give local markets full autonomy and accountability so they can make the best decisions for their customers.” In Germany, Vodafone is falling short of its potential. But the management team there has a plan. However, she did not do so.
The Italian market remains hotly contested. But your company is doing well. From the next quarter, Spain will again contribute to the recovery of European business. Richard Hunter, manager at asset manager Interactive Investor, expressed skepticism. “Vodafone faces two threats: an extremely competitive environment and a deteriorating economic situation.”
In November, just a few weeks before his resignation, Della Valle’s predecessor, Read, announced full-year results at the lower end of the originally targeted range and announced additional savings of around one billion euros. Vodafone expects adjusted earnings of EUR 15 to 15.2 billion for the 2022/2023 financial year.
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