Vodafone Group, which achieved revenue growth of 0.3 percent in fiscal 2022-23, announced its action plan including reduction of 11,000 jobs.
Vodafone Group has posted revenue of €45.706 billion in fiscal 2022-23 as compared with €45.580 billion in the previous fiscal. Service revenue of Vodafone fell to €37.969 billion from €38.203 billion.
Vodafone Group achieved marginal increase in revenue driven by growth in Africa and higher equipment sales, offset by lower European service revenue and adverse exchange rate movements.
Vodafone’s Adjusted EBITDAaL declined 1.3 percent to €14.7 billion due to higher energy costs, and commercial underperformance in Germany.
Vodafone’s service revenue fell in Spain (–5.4 percent), Germany (–1.6 percent) and Italy (–2.9 percent). The revenue contribution to total revenue of Vodafone from Spain was (9 percent), Germany (30 percent) and Italy (11 percent).
Vodafone’s service revenue rose in UK and Vodacom.
Vodafone has shifted focus to three priorities: Customers, Simplicity and Growth.
Vodafone said it plans to make an investment of €150 million in FY24 towards customer experience. Brand spend will be increased €100 million.
Vodafone plans to cut 11,000 roles in Europe over three years. Germany and Italy, where it is not doing well, will undergo job cut in the initial phase.
Vodafone will have a turnaround plan for Germany. It will continue pricing action. Vodafone is considering strategic review for Spain.
Vodafone, according to analysts, is struggling to survive at present despite sale of its assets. Operating profit increased to €14.3 billion and the Group made a profit for the period of €12.3 billion (FY22: €2.8 billion), largely reflecting a gain on disposal of Vantage Towers.
Vodafone’s debt fell by €8.2 billion to €33.4 billion (€41.6 billion as at 31 March 2022) — driven by free cash inflow of €1.4 billion, acquisitions and disposals of €8.7 billion, partially offset by equity dividends of €2.5 billion, and share buybacks of €1.9 billion.
Vodafone is targeting adjusted EBITDAaL of broadly flat at around €13.3 billion; and adjusted free cash flow to be around €3.3 billion, reflecting expected working capital movements, interest and dividend receipts.
Vodafone Europe’s mobile contract customer-base has reached 64.8 million against 66.4 million.
Vodafone Europe’s broadband customer-base reached 24.7 million against 25.6 million.
Vodafone Europe’s Consumer converged customer-base reached 9.1 million against 9 million.
Vodafone Africa’s mobile customer-base reached 189.9 million against 184.5 million.
Vodafone Africa’s data users reached 94.8 million against 89.9 million.
Vodafone Europe’s TV subscriber-base reached 20.7 million against 21.9 million.
IoT SIM connections at Vodafone reached 162.3 million against 150.1 million.
Africa M-Pesa customer-base reached 56.7 million against 52.4 million.
Vodafone Africa M-Pesa transaction volume reached 26 billion against 19.9 billion.
Vodafone 5G is available in 332 cities in Europe against 294.
Vodafone gigabit capable connections in Europe reached 50 million against 48.5 million.
Vodafone is trying to sell assets instead off competing in Europe. Vodafone says it is reviewing options in Spain. Does Vodafone need a new management to revive the business? Can it retain customers by spending €150 million?