Vodafone Group interim CEO Margherita Della Valle has acknowledged the company could do better in Europe and was taking action, as it recorded a slowdown in some of its major markets during fiscal Q3 2023 (calendar Q4 2022).
In its trading update, the executive pointed to a range of measures already underway including simplifying its structure to offer individual markets more autonomy and progress on previously-announced cost savings.
However, she added its “recent decline in revenue in Europe shows we can do better”, noting “we need to do more for our customers by delivering quality connectivity in an easy way”.
On measures already underway, she said there “is more to do and our focus is to provide a better service to our customers, become a simpler business and deliver growth”.
Vodafone reported another large drop-off in service revenue from Spain, down 8.7 per cent year-on-year to €858 million, while Germany and Italy also booked declines.
Its pain in Spain was attributed to continued price competition in the value segment, lower customer base and a cut in mobile termination rates. The company’s boss in the country Colman Deegan is set to step down next month with the unit also set to be reported within its main Europe Cluster moving forward.
In Italy, Vodafone cited continued price pressure in the value segment and a decline in revenue from MVNOs, while in Germany it noted it was suffering “continued impact from commercial underperformance”.
Declines in earnings from these markets were partly offset by improvements in the UK, its rest of Europe division and earnings from Vodacom.
Meanwhile, Africa-focused Vodacom reported strong demand for financial services and increased data usage across its operation, though it noted its business in Democratic Republic of Congo was hit by fuel supply challenges and a natural disaster.
Vodafone only recently got approval to sell its operations in Ghana to Telecel Group in an all cash deal. It however, still remains classified how much Vodafone made from the Ghana deal.
Across its business, Vodafone reported broadly flat revenue at €11.6 billion.
Net profit is not revealed in its Q3 trading updates.
