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Vodafone CEO sets out 2015 strategy

23 мая 2012

Vodafone chief executive Vittorio Colao on Tuesday outlined his company's strategy for the next three years after economic woes in southern Europe weighed on the U.K.-based mobile giant's full year earnings.

During a presentation to investors, he said the Vodafone group will remain focused on leveraging its network assets as a key point of differentiation; improve loyalty with "healthy data pricing models", roaming offers and enhanced customer services; and continue to reinvigorate its retail store experience.

Colao also said Vodafone will aim to sustain ARPU, and work on improving its average margin per user (AMPU) by offering a well-balanced handset portfolio. He admitted AMPU is becoming an increasingly important metric at a time when device subsidies are putting operators' earnings under pressure.

"We're moving to pull back on [acquisition and retention] costs," said Colao.

"At the end of the day it is the margin that matters," he added.

His comments were made after Vodafone reported profit attributable to shareholders in the year ended March 2012 fell 12.7% to £6.96 billion.

The decline was driven by a £4 billion writedown on its operations in southern Europe, namely Italy, Portugal, Greece and in particular Spain, which saw revenues fall 7.2% to £4.76 billion.

"The tough macroeconomic and regulatory environment in much of Europe has made revenue growth in that region increasingly challenging", said Vodafone, in its financial report.

Indeed, the reduction in mobile termination rates alone wiped £928 million off the company's group voice revenues, and prompted Vodafone to lower its 2013 service revenue growth outlook to "slightly below" its previous range of between 1% and 4%.

However, the problems in southern Europe and the regulatory impact were offset by ongoing data revenue growth, improved performance in northern Europe, the Middle East and Africa, and continuing growth at Vodafone's emerging market operations, particularly India, which saw revenue increase to £4.27 billion from £3.86 billion last year.

This helped Vodafone's group revenue edge up 1.2% to £46.42 billion from £45.88 billion in the year ended March 2011.

Источник: Total Telecom

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