Economy

Vodafone sees turnaround as profits for 2018 hit £2.5bn

Vodafone sees turnaround as profits for 2018 hit £2.5bn

Despite this, Philip Carse, analyst at Megabuyte, described Vodafone's United Kingdom operation as "the sick man of Europe" as service revenue locally dropped 3.6 per cent to €6.1bn versus comparative growth in other big country ops.

The UK-based telecom giant's Indian arm had reported a loss of around Rs 30,690 crore for 2016-17 on the back of the Vodafone group scaling down valuation of its Indian unit by taking a gross impairment charge of 4.5 billion euro.

Vodafone, which is in the process of merging with Idea, expects the process to be completed by June, possibly making the latest results the last on standalone basis.

The announcement comes on the same day Vodafone released its financial results for the year, showing a €2.8bn profit, up from a €6bn loss in 2017. "Intense competition is an euphemism". There was 86% decline in data price on a year-on-year basis.

Mr Colao said: "We have made good progress in securing approvals for the merger with Idea Cellular in India - which is expected to close imminently - and appointed the new management team, who will focus immediately on capturing the sizeable cost synergies".

The combined company will be jointly controlled by Vodafone and the Aditya Birla Group. Read will take control of a group that has backed away from its previous large scale expansion efforts under Colao most notably when it left the U.S. market with a $130bn exit from a joint venture with Verizon.

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Vittorio Colao, the current CEO of Vodafone Group Plc, will be leaving the role behind come October 1, 2018. The company notes that this had it looking at both internal and external candidates.

However, Vodafone India revenues fell 18.9 per cent, hurt by an ongoing tariff war with Reliance Jio and a drop in interconnection charges ordered by the telecom regulator.

Revenue fell 2.2 per cent to £46.5 billion compared to a year ago, due to the deconsolidation of Vodafone Netherlands and fluctuating currency rates.

"The chapter that Vodafone is now starting to write is a completely new chapter - after India, after Liberty, with the big in-road into convergence".

"Nick has been the co-architect of the group's strategy together with Vittorio, combining extensive global operational and commercial leadership with world-class financial acumen", said Kleisterlee.

Read will become chief executive-designate at Vodafone's Annual General Meeting in July, and will take over officially from Colao when he leaves on 1 October 2018.