HE Cluster vodafone decided to download Review your business strategy in Spain It is open to all options, including selling in whole or in part, after suffering a decline in revenues in the last fiscal year from April to March, driven by aggressive price competition from low-cost companies. This The Spanish subsidiary recorded total revenues of EUR 3,907 million, 6.5% lessdue to reduced activity in retail services and equipment sales and continued loss of customers.
New one Vodafone Group CEO Margherita Della Vallewarned that it is still too early to determine what kind of decisions will be made regarding the future of the Spanish business, but remains open to “structural changes” regarding the Spanish subsidiary, leaving the door open for any possible development. divestment, reports Reuters. The senior executive acknowledged that the Spanish market is “very difficult” and that the company must manage it “differently”, emphasizing that the strategic review and decisions taken will have the goal of “maximizing value for the shareholder”. “.
Review of Vodafone Spain strategy announced by the group, interest from various mutual funds as well as competitors in the telecommunications industry To take control of the subsidiary, according to Bloomberg. In addition, telephone Vodafone offers Spain a strategic alliance Sharing fiber optic networks if ONO decides to shut down the cable network inherited from its takeover.
The new CEO plans to restart the company and announced that he has done a “substantial review” of the group’s operations and structures. Vodafone Spain is currently under a “strategic review”, a restructuring plan is being prepared for its German subsidiary and telecommunications company, lay off a total of 11,000 jobs in three years worldwide, more than 10% of the total workforce to lighten and streamline their structures.
job decline
Vodafone Spain has been struggling for some time to face tough commercial competition in the national market and to reverse its ever-decreasing revenue decline due to the ‘low cost’ boom. The Spanish subsidiary recorded revenue of 3,514 million in its fiscal year from services (which is directly related to telecommunications services and better measures the development of the business), which is 5.4% less than the previous year.
However, the group clings to the fact that last fiscal quarter it managed to contain the decline (-3.7%) in service sales recorded in previous quarters (-8.7% in the third quarter and 4.5% in the second quarter). It’s part of an increase in rates to offset the blow of inflation to a greater demand for digital services. Vodafone Spain recorded a gross operating result (in favour) of €947 million per year, down 1.1% due to lower sales as well as higher energy costs.
loss of customers
Vodafone reduced its mobile contract customer base by 36,000 to 11.1 million. Its low-cost banner Lowi continues to grow, while the main Vodafone brand outage brought in 200,000 customers. During the fiscal year, 123,000 connections were lost from temporary business SIM cards provided to schools and universities during the pandemic.
The company also reduced its fixed broadband customers by 121,000 (to 2.9 million), while its television customer base decreased by 56,000 (down to 1.5 million). Connected IoT (Internet of Things) hotlines increased by 1 million to 5 million in Spain, which represents around 40% of the market share in this segment.
Vodafone Spain has a new CEO who has been tasked with restarting the subsidiary’s business since April. The new CEO is Mário Vaz, who has been the senior manager of the Portuguese subsidiary since 2012 and joined more than three decades ago. It was underlined that from Telekom, Vaz was chosen because of its vast experience in the commercial field and the continued growth in the business and customer portfolio it has achieved in the Portuguese subsidiary in a market that has a lot in common with the Spanish subsidiary. Such as the widespread expansion of convergence rates (combining telecommunications, data and television services) and aggressive competition from new low-cost operators.
He condemned the new CEO as “Vodafone must change”. “We will simplify our organization by removing complexity to regain our competitiveness (…) We will become a simpler organization to increase our business agility and free up resources.” The parent company increased its net profit to €11,838 million at the end of its fiscal year, compared to €2,237 million recorded last year, due to extraordinary revenue from the partial sale of its subsidiary, Towers Vantage Towers. to exercise. Vodafone’s revenue during the year increased by 0.3% to 45,706 million Euros.