Vodafone chief says group prepared for ‘proactive portfolio’ action

Vodafone mentioned it was on monitor to satisfy its full-year revenue targets because the telecoms group, which just lately turned topic to an activist marketing campaign, reported sturdy progress in its European and African markets.

Chief government Nick Learn mentioned that the FTSE 100 firm was “dedicated to creating worth for our shareholders by proactive portfolio actions and persevering with to enhance returns at tempo”.

His remarks got here days after it was reported that Europe’s largest activist investor Cevian Capital had constructed an undisclosed stake in Vodafone. The investor spent a number of months partaking with Vodafone’s board and administration pushing it to deal with markets the place it was performing properly and get rid of belongings that weren’t, in line with individuals briefed on the discussions.

It notably underscored the significance of consolidating in a number of the extra complicated and poor performing telecoms markets, together with Spain, Italy and the UK, and of realising the worth of Vantage Towers, the tower infrastructure enterprise that Vodafone took public final yr.

For the previous yr, Learn has been vocal in regards to the want for consolidation in weaker markets, and has been contemplating the opportunity of a merger between Vantage Towers and related infrastructure outfits at Germany’s Deutsche Telekom or France’s Orange. Learn held talks with CK Hutchison a couple of deal between Vodafone and Three within the UK final yr

On Wednesday, Learn mentioned that the group was “targeted on our operational priorities to strengthen industrial momentum in Germany [and] speed up our transformation in Spain”.

In a quarterly replace Vodafone reported a 4 per cent rise in income within the three months to December. Natural service income, the cash it makes from prospects, rose 2.7 per cent to €9.6bn.

In Germany, the corporate’s most essential market, it posted income progress of 1.1 per cent, as a consequence of decrease income from variable name utilization, and decrease retail exercise due to the pandemic and the affect of latest telecommunications laws.

The corporate’s progress was affected final yr by a fall in income from buyer roaming, and as each enterprise and leisure journey had been hit by Covid-19 restrictions. Complete income elevated 3.7 per cent quarter on quarter.