Surprise resignation of Vodafone boss Nick Read

In a press release on Monday, the group specifies that Nick Read is also resigning from the board of directors but will remain an adviser to the board of directors until March 31.

He will be replaced on an interim basis by Margherita Della Valle, who will also keep her current position as financial director while the search for a permanent manager to replace Mr. Read.

The group's action took 2% to 92.91 pence around 08:30 GMT on Monday on the London Stock Exchange in a balanced market.

It had fallen by almost 20% since the start of the year and by half since Mr Read took office in 2018.

"I would like to thank Nick for his commitment and his significant contribution to Vodafone as CEO and throughout his career (...) in the company", greeted the chairman of the board of directors Jean-Francois van Boxmeer, quoted in the press release.

"It has been a privilege to spend more than 20 years at Vodafone and I am proud of what we have provided to customers and society across Europe and Africa," said the departing executive. .

"I agree with the board that now is the right time to hand over to a new leader to build on Vodafone's strengths and seize future opportunities," he added. .

- "Disappointed investors" -

The telecommunications group had seen its profit decline slightly for its staggered first half, penalized by a "commercial counter-performance in Germany", its largest market, and suffering from inflation.

He had lowered his profit forecasts in view of the prospects of recession in Europe, particularly in the United Kingdom.

To mitigate the impact of the economic context, Vodafone raised its prices and analysts had worried about the ability of customers to absorb these additional costs.

The group recently said it hoped to derive between 3.2 and 7.1 billion euros from the creation of a joint venture with the American investment funds KKR and GIP, which will buy back part of the shares of its subsidiary. of Vantage Towers base stations.

The telecom operator, one of the heavyweights in Europe, has been carrying out a restructuring for several years which has led it to refocus on Europe and Africa, after undertaking a savings program and introducing Vantage Towers in Stock Exchange in Frankfurt.

It announced in October that it was in discussions to merge its activities in the United Kingdom with Three UK, a subsidiary of the Hong Kong holding company CK Hutchison, in order to combine their forces in 5G.

"Investors are hoping a change at the helm of Vodafone will invigorate the company's stock. While any leadership change is disruptive, Nick Read's restructuring strategy has yet to bear fruit." , comments Susannah Streeter, an analyst at Hargreaves Lansdown.

"Investors were disappointed by weaker-than-expected guidance" while "macroeconomic conditions and rising energy costs are challenges to manage in the highly competitive mobile phone industry, where price hikes are going to be complicated given the cost of living crisis,” she adds.

“The pivot in Africa brings good long-term growth opportunities but medium-term progress is still unclear,” she concludes.