real-time news and commentary for investors
Thursday, Aug 1
Vodafone puts struggling European ops under one leader
- Vodafone (VOD) Northern & Central Europe and Southern Europe units will be merged to create a single Europe division.
- Phillip Humm, currently the CEO of the Northern & Central Europe unit, will be the CEO of merged entity.
- Vodafone is also adding its Turkish division to its Africa, Middle East, and Asia-Pac ops, and creating an expanded "Group Commercial" unit encompassing a variety of sales, marketing, and customer support activities. Southern Europe CEO Paolo Bertoluzzo will run the unit.
- Vodafone reported bleak FQ1 (June quarter) numbers for its European ops, thanks to weak macro conditions (esp. in Southern Europe), intense competition, and the nosediving voice/text messaging activity in the region: Southern European sales fell 14.4% Y/Y, and Northern & Central Europe 3%.
- The restructuring comes as the EU works to create a common telecom market on the continent, and perhaps do away with lucrative roaming fees in the process.