Latest news with #DellaValle
Yahoo
20-05-2025
- Business
- Yahoo
Despite a Lag in Germany, Vodafone Group (VOD) is Focusing on Cash-Flow Growth
On May 20, Reuters reported that Vodafone Group Public Limited Company (NASDAQ:VOD) is witnessing cash-flow growth. However, the revenue of its German operations is lagging. CEO Margherita Della Valle noted that the company has shifted its focus to its strongest markets to achieve sustainable cash-flow growth. A customer receiving a mobile money transfer notification on their phone. Vodafone Group Public Limited Company (NASDAQ:VOD) has been transforming its focus by selling off operations in Spain and Italy. Moreover, in December 2024, the company also secured a merger with Three UK to create a new joint venture called MergeCo. The deal has been approved by the UK Competition and Markets Authority and is expected to be completed during the first half of 2025. Despite the strategic shift, Germany is one of the company's largest markets and continues to face challenges. Earlier today, Vodafone Group Public Limited Company (NASDAQ:VOD) released its preliminary results for fiscal 2025, highlighting that Germany revenue declined 5% during the year. The change in German law, which came into effect in July 2024, prohibits landlords from bundling cable TV fees with rent, allowing tenants in multi-dwelling units (MDU) to choose their own TV and broadband providers. This led to the company losing half of its 8.5 million MDU TV customers. In the preliminary results for fiscal 2025, Della Valle noted that she expects to see broad-based momentum across Europe and Africa. She also expects Germany to return to top-line growth during the current year. Overall, despite the 5% decline in Germany, the company grew its total revenue by 2.8%. While we acknowledge the potential of VOD as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than VOD and that has 100x upside potential, check out our report about the . READ NEXT: and . Disclosure: None
Yahoo
20-05-2025
- Business
- Yahoo
Newly focused Vodafone sees cash-flow growth but Germany drags
By Paul Sandle LONDON (Reuters) - Vodafone's strategy of focusing on its strongest markets will start to deliver sustainable cash-flow growth this year, even if it takes longer for a turnaround in Germany to show up in the telecom's profits, its chief executive said on Tuesday. Margherita Della Valle has reshaped the British group in the last two years by selling operations in Spain and Italy and agreeing a merger in Britain, where it will become the mobile market leader when the deal completes in the coming weeks. "We are now operating in markets where we have strong positions and the potential to earn good returns," she told reporters. Vodafone has struggled in Germany, its biggest market, since it was tripped up by a change in the rules on selling cable TV to apartments. A 5% decline in German service revenue partly offset positive performances in Britain, the rest of Europe, Turkey and Africa, resulting in 2.8% growth for the group. Adjusted core earnings in Germany fell by nearly 13% - dragging the result for the group down to 10.9 billion euros ($12.3 billion) from 11.0 billion the year before. After adjusting for hyperinflation in Turkey, core earnings met its 11 billion euro target, the company said. Della Valle said she expected Germany to return to revenue growth during this year, but there was one more quarter impacted by the TV law change and the market remained competitive. "We are not yet stable across all of Europe in FY 26 as Germany will need time to return to EBITDA growth," she said, referring to earnings before interest, tax, depreciation and amortisation, or core earnings. Analysts have applauded Della Valle's actions, which have reduced debt and have sharpened Vodafone's operational performance. But the market has remained sceptical about the group's prospects and the shares have declined 6% in the last 12 months to lows last seen in 1997. They traded flat on Tuesday. It said it expected to report core earnings between 11.0 and 11.3 billion euros this year and adjusted free cash flow of 2.6-2.8 billion euros, up from 2.5 billion euros in 2024. ($1 = 0.8884 euros) Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
RTÉ News
20-05-2025
- Business
- RTÉ News
Vodafone says Germany will return to growth this year
Mobile and broadband provider Vodafone said it expected to return to revenue growth in Germany, its largest market, this year, driving an increase in cash flow after it said it met expectations for the year ending in March today. The group, which operates in Europe and Africa, reported adjusted core earnings of €10.9 billion, which it said met its €11 billion target when hyperinflation in Turkey was taken into account. Chief executive Margherita Della Valle has reshaped Vodafone by selling its operations in Spain and Italy and agreeing a merger in Britain, where it will become the mobile market leader when the deal completes in the next few weeks. But it was hit by a one-off change in German cable TV contract rules for apartment blocks, resulting in a 5% decline in service revenue in the country in the last financial year. "Looking ahead, we expect to see broad-based momentum across Europe and Africa, and for Germany to return to top-line growth during this year," she said. Analysts have applauded Della Valle's actions, which have reduced the group's debts and have sharpened its operational performance. But the market has remained sceptical about Vodafone's prospects and the shares have declined 6% in the last 12 months to lows last seen in 1997. They traded broadly flat in early deals today. Service revenue grew 2.8% to €30.8 billion, meeting analysts' expectations, the company said. Adjusted free cash flow came in at €2.5 billion, just ahead of expectations. It said it expected adjusted core earnings of between €11-11.3 billion this year and adjusted free cash flow of €2.6-2.8 billion.
Yahoo
28-04-2025
- Business
- Yahoo
Vodafone whistleblowers warned executives about plight of high street store staff
Whistleblowers warned a series of senior Vodafone executives – including the current chief executive, Margherita Della Valle – that scores of its franchised store owners faced financial ruin about two years before a high court claim accused the company of 'unjustly enriching' itself. Vodafone employees made repeated complaints to their superiors about the company slashing commissions paid to the small businesses running the company's high street retail network, according to a string of current and former Vodafone employees. The cost-cutting tactics resulted in a group of 62 of about 150 Vodafone franchise operators filing a £120m-plus legal claim last December. The telecoms company, which is valued at about £17bn on the London Stock Exchange, has said: 'We refute the [legal] claims but will be fully engaging in [a mediation] process with a view to resolving this commercial dispute.' However, the emergence of warnings to senior management reveals for the first time how some of the mobile operator's own staff appeared to support the franchisees over their own employer. The drastic cuts to commission rates paid to franchisees, which were imposed as the country emerged from Covid-19 lockdown in 2020, were blamed for the small business owners running up huge personal debts and fearing for their livelihoods or homes, with some reporting suicidal thoughts. The company says it apologises 'unreservedly to anyone whose experiences while operating their business has impacted [their health] in this way' and added that 'where issues have been raised, we have sought to rectify these and we believe we have treated our franchisees fairly'. Della Valle, who has been Vodafone's chief executive since December 2022 and was previously finance director from 2018, was notified of the franchisees' plight around the time of her promotion, according to interviews and records seen by the Guardian. One email to Della Valle, which she appeared to respond to, cited an instance of an internal Vodafone whistleblower raising concerns about the company's treatment of its franchisees. Sources allege that some of the senior executives briefed about the franchisees' grievances during that period included two members of Vodafone's current UK board: Max Taylor, who was promoted to Vodafone's UK chief executive last year and was previously its chief commercial officer from 2019; and Jon Shaw, who was promoted to commercial operations director in 2022 and who has worked for the business for a decade. Vodafone said it disputed the term 'whistleblower', stating that the company has a transparent and open process. It said the company's 'Speak-Up process provides a safe forum for anyone to anonymously raise any issues or concerns they may have, which are picked up by a dedicated team … This process was used by one Vodafone employee in relation to the franchise programme and an immediate and thorough investigation was conducted.' The company added that it had made 'improvements to the programme' and had made payments to current and former franchisees. 'We reimbursed a total of £4.9m including VAT across our franchise estate,' a spokesperson said. 'We made this payment with no obligation to do so and applied it consistently across our estate. This resulted in individuals who are bringing the claim against us, some of whom are no longer franchisees, receiving payments with no strings or legal consequences.' A franchise is a type of licence that allows a company to sell a product or service under another business's brand name, in return for paying certain costs such as rent and wages. As part of their deals, Vodafone franchisees – who created their own small businesses to run the stores – were paid commissions based on the handset and airtime revenues they generated from customers visiting their shops. The changes to the commission rates left many franchisees with drastically reduced revenues, while their costs remained largely unchanged. One Vodafone employee, who said that the company's UK bosses were aware of the issues affecting franchisees, said: '[The franchisees were] very badly treated throughout and I felt very compromised … Every day was a battle.' Another Vodafone employee suggested the issues for the franchisees were widespread. 'Everyone had a problem,' the source said. The court papers allege that Vodafone acted in 'bad faith' by unilaterally cutting fees to its franchisees; imposed swingeing fines on them totalling thousands of pounds for seemingly minor administrative errors; and then cajoled them into taking out loans and government grants to keep their businesses afloat. Many said they feared losing their livelihoods, homes or life savings after running up personal debts of more than £100,000. Some franchisees claimed that regional managers told them it was only their individual stores that were in difficulty, in messaging that some complainants allege echoes one theme in the long-running Post Office scandal. A spokesperson for Vodafone, who argued the legal claim is actually worth £85.5m, said: 'This is a commercial dispute between Vodafone UK and some of our franchise partners. We have fully engaged with all claims made by these partners since they were first raised, including through a formal process which, at appropriate times, involved independent legal review. 'We are now fully engaged in mediation … with the claimant group. This is run by an independent mediator, who was selected and agreed upon by both sides. We are hopeful the mediation will reach a conclusion that suits both parties.' The company says that many franchisees disagree with the claim and out of its current '83 franchise partners, 68 have chosen not to join the claim and are continuing to run their businesses'. Sign in to access your portfolio
The Guardian
27-04-2025
- Business
- The Guardian
Vodafone whistleblowers warned executives about plight of high street store staff
Whistleblowers warned a series of senior Vodafone executives – including the current chief executive, Margherita Della Valle – that scores of its franchised store owners faced financial ruin about two years before a high court claim accused the company of 'unjustly enriching' itself. Vodafone employees made repeated complaints to their superiors about the company slashing commissions paid to the small businesses running the company's high street retail network, according to a string of current and former Vodafone employees. The cost-cutting tactics resulted in a group of 62 of about 150 Vodafone franchise operators filing a £120m-plus legal claim last December. The telecoms company, which is valued at about £17bn on the London Stock Exchange, has said: 'We refute the [legal] claims but will be fully engaging in [a mediation] process with a view to resolving this commercial dispute.' However, the emergence of warnings to senior management reveals for the first time how some of the mobile operator's own staff appeared to support the franchisees over their own employer. The drastic cuts to commission rates paid to franchisees, which were imposed as the country emerged from Covid-19 lockdown in 2020, were blamed for the small business owners running up huge personal debts and fearing for their livelihoods or homes, with some reporting suicidal thoughts. The company says it apologises 'unreservedly to anyone whose experiences while operating their business has impacted [their health] in this way' and added that 'where issues have been raised, we have sought to rectify these and we believe we have treated our franchisees fairly'. Della Valle, who has been Vodafone's chief executive since December 2022 and was previously finance director from 2018, was notified of the franchisees' plight around the time of her promotion, according to interviews and records seen by the Guardian. One email to Della Valle, which she appeared to respond to, cited an instance of an internal Vodafone whistleblower raising concerns about the company's treatment of its franchisees. Sources allege that some of the senior executives briefed about the franchisees' grievances during that period included two members of Vodafone's current UK board: Max Taylor, who was promoted to Vodafone's UK chief executive last year and was previously its chief commercial officer from 2019; and Jon Shaw, who was promoted to commercial operations director in 2022 and who has worked for the business for a decade. Vodafone said it disputed the term 'whistleblower', stating that the company has a transparent and open process. It said the company's 'Speak-Up process provides a safe forum for anyone to anonymously raise any issues or concerns they may have, which are picked up by a dedicated team … This process was used by one Vodafone employee in relation to the franchise programme and an immediate and thorough investigation was conducted.' The company added that it had made 'improvements to the programme' and had made payments to current and former franchisees. 'We reimbursed a total of £4.9m including VAT across our franchise estate,' a spokesperson said. 'We made this payment with no obligation to do so and applied it consistently across our estate. This resulted in individuals who are bringing the claim against us, some of whom are no longer franchisees, receiving payments with no strings or legal consequences.' A franchise is a type of licence that allows a company to sell a product or service under another business's brand name, in return for paying certain costs such as rent and wages. As part of their deals, Vodafone franchisees – who created their own small businesses to run the stores – were paid commissions based on the handset and airtime revenues they generated from customers visiting their shops. The changes to the commission rates left many franchisees with drastically reduced revenues, while their costs remained largely unchanged. One Vodafone employee, who said that the company's UK bosses were aware of the issues affecting franchisees, said: '[The franchisees were] very badly treated throughout and I felt very compromised … Every day was a battle.' Sign up to Business Today Get set for the working day – we'll point you to all the business news and analysis you need every morning after newsletter promotion Another Vodafone employee suggested the issues for the franchisees were widespread. 'Everyone had a problem,' the source said. The court papers allege that Vodafone acted in 'bad faith' by unilaterally cutting fees to its franchisees; imposed swingeing fines on them totalling thousands of pounds for seemingly minor administrative errors; and then cajoled them into taking out loans and government grants to keep their businesses afloat. Many said they feared losing their livelihoods, homes or life savings after running up personal debts of more than £100,000. Some franchisees claimed that regional managers told them it was only their individual stores that were in difficulty, in messaging that some complainants allege echoes one theme in the long-running Post Office scandal. A spokesperson for Vodafone, who argued the legal claim is actually worth £85.5m, said: 'This is a commercial dispute between Vodafone UK and some of our franchise partners. We have fully engaged with all claims made by these partners since they were first raised, including through a formal process which, at appropriate times, involved independent legal review. 'We are now fully engaged in mediation … with the claimant group. This is run by an independent mediator, who was selected and agreed upon by both sides. We are hopeful the mediation will reach a conclusion that suits both parties.' The company says that many franchisees disagree with the claim and out of its current '83 franchise partners, 68 have chosen not to join the claim and are continuing to run their businesses'.
