Some, but maybe not enough, recognition that new blood is needed to revive the operator’s fortunes
While the search for a new CEO goes on after Nick Read’s departure at the end of December, Vodafone Group has announced changes to its Group Executive Committee. Over eight years, during his tenure as Group CFO then CEO (since 2018), Read oversaw a drop of £33 billion in the group’s market value, more than half the starting figure. The group’s biggest markets – Germany, Italy, the UK and Spain – have all become less profitable after ebitda since 2018.
At this point the exec committee changes are mostly a shuffling of responsibilities although the biggest news is that Colman Deegan, CEO of Vodafone Spain, apparently decided to quit and will leave his post on 31 March 2023. Vodafone’s Spanish business is under pressure from investors over its performance: in October Reuters reported it has selected investment bank Evercore to sell a stake in its fixed network in Spain to relieve some of that pressure.
Deegan is the second CEO of one of Vodafone’s major European opco to depart within a year: the group announced the departure of Hannes Ametsreiter, CEO of Vodafone Germany, last April, having confirmed his tenure until at least 2024 three weeks earlier, before his current tenure had ended.
He was replaced by Philippe Rogge formerly of Microsoft.
Germany is Vodafone’s biggest market in Europe but has failed to deliver the expected returns on its massive investment in the Liberty Global cable infrastructure it acquired in 2019 for €18.4 billion. The deal included cable infrastructure in the Czech Republic, Hungary and Romania.
The company also bungled its handling of an expected change in the law (known as the TKG) which allows tenants in rented properties to choose their own cable provider instead of being stuck with the property owners’ choice.
Deegan will support Margherita Della Valle, Vodafone Group’s acting CEO (and CFO) from 1 April until 31 July 2023. His successor will be appointed “in due course”. Vodafone Spain will join the Europe Cluster, also from 12 January 2023, and report to Europe Cluster’s CEO, Serpil Timuray.
Timuray has been CEO of the Europe Cluster since October 2018 and a member of the Group Executive Committee since January 2014. Previously she was the Group Chief Commercial Operations and Strategy Officer and formerly the Regional CEO for Africa, Middle East and Asia Pacific.
Aldo Bisio, CEO of Vodafone Italy, will become Group Chief Commercial Officer in addition to his current role from 12 January. He has been CEO of Vodafone Italy since January 2014 and is already a member of the Group Executive Committee. Outgoing CEO Read disappointed some shareholder by turning down an offer of €11 billion for its Italian opco from Iliad Group in February 2022.