Latest Vodafone News, Nov 2015
Vodafone Decides Against Emerging Markets Spinoff
Vodafone were looking into the potential of spinning off its entire emerging markets unit, which features interests in Qatar, Turkey, Africa, India and New Zealand, after the sheer scope of Vodafone’s worldwide operations were placed in the spotlight following summer talks with Liberty Global. It has now, however, decided against spinning the branch off because of the synergistic opportunities it presents with the rest of their business.
Speaking on Wednesday at a investor conference held by Morgan Stanley Vodafone’s CEO, Vittorio Colao, said that the board regularly reviewed the companies set-up, but decided that recent discussions had concluded that a split would not create value for the company, so opted against it, before adding “We’re open-minded. If one day there is a better option we will look at it,”
Turning Point Declared for Vodafone
After a number of years of shaky results for the Vodafone group, it would appear that the company is heading back towards firm footing, as the group posted a return to earnings before interest, tax, depreciation and amortisation growth in the first half of 1.9 per cent to £5.8bn, beating most of the forecasts made by analysts.
Mr Colao pointed towards the effects of their latest investment drive, which has resulted in 2.7 net new mobile customers and half a million new home broadband customers during the first half of the year. Part of that growth has come from 4G, where the company now describes itself as “achieving leadership in Europe”. Vodafone said it expected revenue and profitability to continue to improve in the second half, with full-year earnings to be in a range of £11.7bn to £12.0bn.
Source: Financial Times
Vodafone Attack BT/EE Deal
Vittorio Colao, CEO of Vodafone, has come out swinging against BT’s plan to buy EE. Just two weeks after European competition authorities provisionally cleared the £12.5 billion deal to purchase EE from its joint owners Deutsche Telekom and Orange, Vodafone have gone on the offensive, calling the deal a “clear attempt by Deutsche Telekom and BT to undo 30 years of progress in telecoms in Europe and return to their monopoly status,”, before saying “The re-monopolisation risk in Europe is real and big,”
Vodafone, like Sky, also have something to say about the state of broadband in the UK, or, more specifically about BT Openreach, which has a monopoly over the UK’s broadband infrastructure. He is also of the belief that its monopoly should be destroyed, with Openreach separated from BT, where it could then compete with new companies, who would also service the lines. Competition would also drive fewer complaints to the 0844 800 3116 contact number for Vodafone, where customers often complain about long broadband installation times.
For BT’s part, a spokesman said “The UK is one of the most competitive telecoms markets in the world and it is highly misleading to suggest otherwise. Independent [European Commission] data shows that BT has a 33 per cent market share, one of the lowest in Europe.”, but then, they would say that.
Source: The Independent
Vodafone Hurt by 0800 Number Change
Vodafone have been hit by the change in telecoms regulations made earlier in the year which make 0800 numbers free to call from either mobile or home phone. With the change, Vodafone saw a drop in their contract revenues after years of gradual growth, thanks to the declining use of home telephone numbers.
Conversely, the company has benefitted from Facebook’s push into mobile video consumption, with the Facebook application for mobile phones now auto playing videos, and therefore driving a greater amount of data through their service.