Vodafone longtime CEO to step down as company returns to profit

Vodafone's Vittorio Colao to Step Down in October

Vodafone's Vittorio Colao to Step Down in October

He joined Vodafone in 2001 as UK finance director, before serving stints as UK chief commercial officer and UK chief executive.

The announcement came as Vodafone reported a €2.8 billion profit for the financial year, a substantial increase from the €6 billion it lost last year due a write down in the value of its Indian network.

Mr Colao said it had been a "real privilege" to lead Vodafone.

"Effective 1 October 2018, Vittorio Colao will be succeeded by Group Chief Financial Officer Nick Read", Vodafone said in a statement.

Read has been CFO since April 2014 and was previously CEO for the Africa, Middle East and Asia Pacific region.

British telecoms giant Vodafone on Tuesday announced a return to annual profit, as it revealed that long-serving chief executive Vittorio Colao will step down later this year.

Vodafone Group CEO Vittorio Colao said at a web conference that both the companies have already starting branding exercise for the new entity. "He 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".

"Following the completion of Idea's equity raising in February 2018, under the terms of the merger agreement with Idea the Group intends to inject up to 1 billion euro (around Rs 7,500 crore) of incremental equity into India, net of the proceeds of the sale of a stake in the joint venture to the Aditya Birla Group (ABG), prior to completion", Vodafone said.

"Losses continued in India as service revenue declined 18.7 per cent as a result of intense price competition from the new entrant, aggressive competitor responses and a significant reduction in MTRs (mobile termination rates)", Vodafone said.

"We have made good progress in securing approvals for the merger with Idea Cellular in India - which is expected to close imminently - and appointed the new management team, who will focus immediately on capturing the sizeable cost synergies".

Excluding the negative impact of net roaming declines in Europe, the benefits of settlements in the United Kingdom and Germany and the introduction of handset financing in the United Kingdom, organic adjusted EBITDA grew by 7.9%. "And we announced last week the acquisition of Liberty Global's cable assets in Germany and Central and Eastern Europe, transforming the Group into Europe's leading next generation network owner and a truly converged challenger to dominant incumbents".

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