Telecom giant Vodafone's turnaround plan is yielding positive results as its largest business, Germany, returned to growth last year after the sale of its Italian and Spanish operations. Under the leadership of CEO Margherita Della Valle, Vodafone has been implementing a transformation program aimed at simplifying the group and addressing underperforming markets. The company sold its Spanish division for €5 billion and announced an €8 billion sale of its operations in Italy. Despite reporting a 74% decline in operating profits for the year ended March 31, 2024, to €3.7 billion, Vodafone remains committed to cost-cutting measures. As part of a €1 billion cost reduction target, the company plans to shed 5,000 roles and cut an additional 2,000 jobs. By 2026, Vodafone aims to eliminate up to 11,000 positions. The potential merger with Three, currently under examination by the UK regulator Competition and Markets Authority (CMA), is another significant development for Vodafone. The CMA has expressed concerns about potential negative impacts on mobile customers, including higher prices and reduced quality. Vodafone intends to rebase its dividend and conduct share buybacks over the next two years using proceeds from the Spanish and Italian businesses. Additionally, the company is addressing concerns about the 14.6% stake held by its largest investor, Emirates Telecommunications, which the UK government has identified as a national security risk. Vodafone emphasizes its commitment to human rights, as well as its robust data security and privacy measures.
Meanwhile, América Móvil, one of the top 10 largest mobile network operators in the world, is acquiring a controlling interest in ClaroVTR, a telecommunications company operating in Chile. América Móvil will be consolidating ClaroVTR into its ongoing operations, after acquiring approval from the National Economic Prosecutor's Office of the Republic of Chile. The conversion is expected to close during the third quarter of this year [ab0fb804].