The new CEO of Vodafone has promised to reduce the operating costs by EUR 1.2 billion (roughly Rs. 9,800 crores) by the end of 2021 and has also said that they would be reviewing their tower assets in order to drive better returns soon.
On Tuesday, Nick Read’s blog post said thus- “My new strategic priorities focus on (…) radically simplifying our operating model and generating better returns from our infrastructure assets.”
Vodafone’s shares fell by 39 percent since the beginning of the year since investors started fretting about the cost of acquiring Liberty Global’s cable assets in Germany, which is the outlay on new spectrum for 5G services and tougher conditions in some European markets.
Read also stated that he had taken decisive commercial and operational actions in order to respond to certain challenging competitive conditions in Italy and Spain, and he would reduce Vodafone’s costs for the third year running.
Vodafone reported a group service revenue of about EUR 19.7 billion (roughly Rs. 1,60,700 crores) and adjusted earnings of about EUR 7.08 billion (roughly Rs. 57,800 crores), along with about 2.9 percent growth in an organic basis for the six months until the end of September, which clearly agreed with the market forecasts.