Sarin quits phone firm on a high
|
A woman talks on her mobile telephone as she passes by a Vodafone shop in London. Bloomberg News |
Vodafone Group Plc Chief Executive Officer Arun Sarin will step down and be replaced by his deputy Vittorio Colao after steering the world's largest mobile-phone company to a record profit.
Sarin, 53, will step down in July, Newbury, England-based Vodafone said in a Regulatory News Service statement. Vodafone posted a full-year profit of 6.66 billion pounds, or 12.5 pence a share, compared with a loss of 5.43 billion pounds, or 9.84 pence, a year earlier, Vodafone said in a separate release.
Sarin used acquisitions in emerging markets in the past two years, including in Turkey and India, the fastest-growing major wireless market, to help make up for slower growth in Europe. The purchase of Tele2 AB's Spanish and Italian broadband units as well as mobile Web and e-mail services helped European sales as voice revenue shrinks.
"He'd like to go out on a high note," said Damien Chew, an analyst at ING in London who rates the company "hold". "He was under a lot of pressure about two years ago."
Earnings per share were seen at 11.9 pence, based on 16 estimates. Sales for the year ended in March gained 14 percent to 35.5 billion pounds. Sales beat the 35.4 billion-pound average of 28 estimates.
The UK company had 252 million customers at the end of 2007, of which 106 million, or 42 percent, were in growth markets in eastern Europe, the Middle East, Africa and Asia.
Vodafone fell 0.1 percent to 163.3 pence in London on May 23. The stock has lost 13 percent this year, beating a 19 percent slide for the Bloomberg Europe Telecommunication Services Index.
Annual earnings before interest, taxes, depreciation and amortization rose 10 percent to 13.2 billion pounds from 12 billion pounds, beating the 13.1 billion-pound average estimate.
In the year-earlier period, Vodafone had a 3.5 billion-pound charge after Italy abolished fees for recharging prepaid cards.
Vodafone reiterated this month its interest in raising its 50 percent stake in Vodacom Group Ltd, South Africa's largest wireless provider. Telkom South Africa Ltd owns the rest.
Telkom South Africa began a strategic review in June and said it would consider selling its Vodacom stake. In November, Telkom South Africa abandoned talks to sell its mobile- and fixed-line phone assets to Vodafone and MTN Group Ltd.
Vodafone bought a 52 percent stake in Hutchison Essar Ltd, now India's third-largest wireless operator, for $10.7 billion in May 2007.
Agencies
(China Daily 05/28/2008 page17)
