Nick Read, CEO of Vodafone, has agreed with the group to leave office on December 31, unable to drive a downward business and in which competition is increasing. He will replace the current financial director, Margharita Della Valle, who will occupy the position on an interim basis.
Read, who was CEO since 2018, will remain as an advisor to the board until March 31, 2023, the company has announced.
"I agreed with the advice that now is the right time to hand over to a new leader who can build on Vodafone's strengths and capture the important opportunities that lie ahead," said Nick Read. Although no reasons for the exit have been revealed, the progress of the business is the argument that analysts point to. As a reflection, in the last year the company's shares have left almost 20% of the value and in fact it is trading below pre-pandemic levels.
The telecommunications operator, one of the heavyweights in Europe, has been carrying out a restructuring for several years that has led it to refocus on Europe and Africa, after embarking on a savings program. In addition, to mitigate the impact of the economic context and inflation, it has raised its prices and analysts doubt the ability of customers to absorb these additional costs. It has also explored merging its UK business with Three UK. "Nick Read's restructuring strategy has not yet paid off," says Susannah Streeter, an analyst at Hargreaves Lansdown.
Higher energy costs, homes more drowned by inflation, more competition... It all shows in the accounts. The operator obtained a net profit of 986 million euros in the first six months of its fiscal year, 1% less than in the same period of the previous year, while the turnover reached 22,930 million, barely 2% better than a year ago
"I am proud of what we have delivered to customers and society across Europe and Africa," Read said. The manager received 1.25 million euros per year, with a bonus that could reach 2.5 million. He will receive his salary to complete his contract, in March 2023.
Vodafone operates in 22 countries with its own networks and is associated with other firms in another 47. It has 300 million mobile customers, 28 million fixed broadband and 22 million TV customers. It has 160 million devices connected to the Internet of Things (IoT), a sector in which it claims to be a world leader.
