# Vodafone takes ‘first steps’ in turnaround with top-line improvement Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-07-24 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Vodafone's Turnaround Plan Shows Positive Start Meta Description: Vodafone sees positive start under new CEO Margherita Della Valle, with improvements in UK, Germany, Italy, and Spain. Former SAP CFO Luka Mucic appointed. URL: https://financedigest.com/vodafone-takes-first-steps-in-turnaround-with-top-line-improvementhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-07-24t063221z2lynxmpej6n051rtroptp4vodafone-m-a-hutchison-1736813729878-compressed.jpg) # Vodafone takes ‘first steps’ in turnaround with top-line improvement By Paul Sandle LONDON (Reuters) -Vodafone reported better top-line growth on Monday, driven by higher prices in Britain and improvements in Germany, Italy and Spain, marking a positive start for new Chief Executive Margherita Della Valle’s turnaround plan. The European and African telecoms group also said it had appointed former SAP chief financial officer, Luka Mucic, to the same role at Vodafone, beginning on Sept. 1. He will replace Della Valle, who was appointed to the top job permanently in April with a remit to reduce complexity, fix problems in its [largest market](https://www.financedigest.com/north-america-to-emerge-as-largest-market-for-softball-equipment-through-2026.html "North America to Emerge as Largest Market for Softball Equipment Through 2026"), Germany, and deliver the basics for customers. She said on Monday that organic service revenue had improved “across almost all of our markets”, as it reported a 3.7% [first-quarter rise](https://www.financedigest.com/anglo-americans-first-quarter-copper-output-rises-28.html "Anglo American’s first-quarter copper output rises 28%"). “We’ve taken the first steps but of course we have much more still to do,” she told reporters. Shares in Vodafone, which have fallen 43% in the last 12 months, rose 4.7% in early deals. The decline in service revenue in Germany more than halved quarter-on-quarter to 1.3%, as price rises partially offset the [impact of customer](https://www.financedigest.com/revolutionising-finance-exploring-the-impact-of-omnichannel-insurance-on-customer-experience.html "Revolutionising Finance: Exploring the Impact of Omnichannel Insurance on Customer Experience") losses over the last 18 months. Della Valle said she [expected “ongoing gradual improvement”](https://www.financedigest.com/demand-for-meatless-products-and-vegetable-proteins-is-expected-to-improve-nutritional-yeast-market-sale.html "Demand For Meatless Products And Vegetable Proteins Is Expected To Improve Nutritional Yeast Market Sale") in the country. Growth in service revenue in Britain, where Vodafone announced the merger of its [operation with Hutchison’s rival network Three last month](https://www.financedigest.com/naturgys-profit-rises-on-lng-gains-soothing-shareholders-by-pietro-lombardi-madrid-reuters-spanish-power-utility-naturgy-reported-on-monday-an-88-jump-in-profit-for-the-first-six-months-of.html "Naturgy’s profit rises on LNG gains, soothing shareholders By Pietro Lombardi MADRID (Reuters) – Spanish power utility Naturgy reported on Monday an 88% jump in profit for the first six months of the year, boosted by strong earnings at its liquefied natural gas (LNG) business, which could help it to win over restive investors. Earlier this month, the company said it would increase its dividend floor through 2025 while trimming expected investment, as it sought to make rewarding shareholders a priority. Pleasing them has become a focus as Naturgy considers changes that could reshape the company and after arguments over the potential appointment of a chief executive. Naturgy’s first-half net profit jumped to 1.05 billion euros (.16 billion), boosted by its liquefied natural gas (LNG) business. Shares were down 0.2% in mid-morning trading, bucking deeper declines, in particular for Spain’s blue-chip banks and utilities after a general election on Sunday produced no clear winner. Renta 4 Banco analyst Angel Perez Llamazares said Naturgy performed better than expected, adding “cash flows also beat our expectation,” and debt fell more than expected. After natural gas prices hit record levels last year, Naturgy said a fall in procurement costs this year and hedging gains had boosed profits. In the first half of the year, the company “exceeded the objectives of operating efficiency, cash generation, investment materialisation and debt reduction,” Executive Chairman and CEO Francisco Reynes said. After rival Iberdrola named a separate CEO last year, Naturgy is the only large energy company in Spain to combine the roles of executive chairman and CEO. Earlier this month, the company raised the dividend floor to 1.40 euros a share, from 1.20 euros. Operating profit (earnings before interest, tax, depreciation and amortisation) is expected to reach 5.1 billion euros, compared with a previous guidance of 4.8 billion euros. It said it was targeting net profit of 1.8 billion euros in 2025. Naturgy also relaunched its plan to split regulated infrastructure operations and liberalised energy businesses into two listed companies. The project had been suspended after the Ukraine war disrupted energy markets and analysts are still sceptical. “We believe it is unlikely that Naturgy will be able to implement its asset split in the short term and it is also unlikely that a big change in the shareholding of the company would occur,” said RBC analyst Fernando Garcia. ( = 0.8986 euros) (Reporting by Pietro Lombardi, editing by Inti Landauro and Barbara Lewis)"), accelerated to 5.7%, boosted by strong growth in consumer and price increases. In Italy, [improved demand from businesses](https://www.financedigest.com/how-businesses-can-improve-payroll-recruitment.html "How Businesses Can Improve Payroll Recruitment") helped reduce the service revenue decline to 1.6%, from 2.7% in the previous quarter, it said, while Spain saw a smaller improvement to a decline of 3.0% from 3.7%. Della Valle said a strategic review of Spain initiated in May was already driving better performance, but the [market needed](https://www.financedigest.com/electric-scooters-market-rising-need-for-eco-friendly-vehicles.html "Electric Scooters Market – Rising Need For Eco-Friendly Vehicles ") structural change. We are [considering a range of options,”](https://www.financedigest.com/cryptoverse-is-bitcoin-out-of-the-woods-consider-the-options.html "Cryptoverse: Is bitcoin out of the woods? Consider the options") she said. Vodafone UK Chief Executive Ahmed Essam, who will lead the combined operator, said the company was having early discussions with the antitrust regulator before filing the case in the [next few weeks](https://www.financedigest.com/hungary-cenbank-seen-hiking-100-bps-to-11-75-next-week-as-inflation-surges.html "Hungary cenbank seen hiking 100 bps to 11.75% next week as inflation surges"). (Reporting by Paul Sandle; Editing by Kate Holton and Sharon Singleton) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---