The Chief Executive Officer of U.K.-based Vodafone Group Plc – Mr. Jeroen Hoencamp revealed that his main goal is to return the company back to growth in the next two years. The company, which is the largest mobile phone carrier outside of Asia, will battle a long-term decline with growth in both sales and profits in the UK market, which remains pressed by price wars and struggles against regulation.
“My aim is to take the business back to growth in 18-24 months from a profit and revenue point of view,” Mr. Hoencamp said yesterday, cited by Bloomberg. “Profitability in the UK is among the lowest in Europe. We can turn that around. We want to create the best network.”
Vodafones chief executive shared that he sees the companys future to be tightly connected to the improvement of its networks service quality. He pledged to invest more in improving Vodafones network in order to attract more subscribers, who are willing to pay higher prices in return for better services.
According to Mr. Hoencamp, some of the issues that cause additional problems relate to the fact that the market is heavily regulated and highly subsidized. Furthermore, Vodafone is suffering to tough competition, considering the fact that Telefonica SAs O2, and Orange SA and Deutsche Telekom AGs joint venture EE Ltd are attracting more customers.
Vodafone Group Plc added 2.39% to trade at GBX203.40 per share by 13:37 GMT, marking a one year change of -6.87%. The company is valued at £52.64 billion. According to the Financial Times, the 23 analysts offering 12-month price targets for Vodafone Group Plc have a median target of £2.30, with a high estimate of £2.70 and a low estimate of £1.30. The median estimate represents a 15.78% increase from the previous close of £1.99.
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