Author: Toby Melville | Reuters
The company announces a “strategic review” of operations in the Spanish market
Company Vodafone It achieved an annual net profit of 12.335 million euros as of March 31, 344% more than the previous year. However, the company has intends to cut 11,000 jobs in the next three years to simplify the telecommunications group.
In a statement sent this Tuesday to the London Stock Exchange, the company indicated this these benefits are in contrast to the 2,773 million euros received the previous yearwhile its gross profit was 12,816 million, 212% more.
Revenues also increased due to higher equipment sales, which offset lower service revenues in Europe and unfavorable exchange rates, the statement added.
“Today I am announcing my plans for Vodafone. Our performance was not good enough. For consistent performance, Vodafone needs to change“, said this Tuesday the president of the company’s management board, Margherita Della Valle.
“My priorities are customers, simplicity and growth. We will simplify our organization, reduce complexity to gain competitiveness. We will reallocate resources to provide the quality service our clients expect.», he added, covertly alluding to dismissals.
Thus, the company indicates that the reduction of functions in the next three years will correspond mainly to its headquarters and local markets, while there will be a change plan in Germany and Strategic review in Spain.
Vodafone reported that it managed to reduce its net debt by 19.7% to EUR 33,375 million.
Operating profit was boosted by the sale of Vantage Towers, the note added, which also indicated that the final dividend per share would be 4.5 cents.
Vodafone acknowledges that the position and its performance varies by region and that the company’s transformation must build on its strengths, although there is a need to overcome some “challenges”.
The company says it’s a more complex group than it should be, limiting its local business agility.
Its strategic goal, the press release points out, is to be a first class telecommunications company in Europe and Africa and the leading European platform for business.
The “action plan” launched by Vodafone aims to achieve change focused on three priorities: customers, simplicity and growth.
Source: La Vozde Galicia
I am Jason Root, author with 24 Instant News. I specialize in the Economy section, and have been writing for this sector for the past three years. My work focuses on the latest economic developments around the world and how these developments impact businesses and people’s lives. I also write about current trends in economics, business strategies and investments.
