Vodafone falls 3% on CEO resignation

Vodafone Group CEO Nick Read

Vodafone Group CEO Nick Read

Effective October 1st 2018, Vittorio Colao will be succeeded by Group Chief Financial Officer Nick Read. From the group's AGM in June already, Read will become CEO designate, while deputy CFO Margherita Della Valle will become group CFO and join the board of directors.

Colao was appointed to the role in July 2008, and over 10 years at the helm has diversified Vodafone beyond its roots in consumer mobile to become an worldwide enterprise services provider, establishing a leading position in the internet of things (IoT) as well as embracing 4G and broadband services. The mobile customer base doubled from 269 million to 536 million during his tenure, and the company added almost 20 million broadband customers. He was previously the Group's Chief Executive for the Africa, Middle East and Asia Pacific region and served as a board member of a number of Vodafone's emerging markets subsidiaries including Vodacom Group and Vodafone India.

Vodafone on Tuesday posted net profit of 2.4 billion euros ($2.9 billion) in the 12 months to the end of March, which compared with a loss after tax of 6.3 billion euros in 2016/17, the group said in a statement. With CFO Nick Read (4 years in the position) slated to replace Vittorio Colao at the helm, investors looked to be erring on the side of caution about the group's direction under new leadership.

"Vodafone chairman Gerard Kleisterlee said: "[Vittorio] has been an exemplary leader and strategic visionary who has overseen a dramatic transformation of Vodafone into a global pacesetter in converged communications, ready for the gigabit future.


Vodafone revenue fell 2.2 percent to €46.6 billion, primarily due to the deconsolidation of Vodafone Netherlands following the creation of joint venture VodafoneZiggo, and foreign exchange movements.

After all, medium-term financial results are only part of corporate success, with vision and strategy providing an equally (some say more) important other side of the coin.

Vodafone said it was close to gaining regulatory approval for the planned merger of its Indian operations with Idea Cellular.

The announcement comes less than a week after Vodafone unveiled a deal to turn it into Europe's largest cable and broadband operator by buying assets from USA peer Liberty Global. "Our primary focus continues to be to accelerate the "Digital Vodafone" programme, which we believe is a unique opportunity to enhance our customers' experience, generate incremental value and improve cost efficiency".

Recommended News

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.