Shares of global telecommunication services provider Vodafone Group (NASDAQ:VOD) are tanking in the pre-market session today after investors were disappointed with the company’s preliminary fiscal 2023 performance.
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Revenue remained largely flat at €45.71 billion with a year-over-year growth of 0.3%. EPS for the year landed at €0.11. The company’s Group Chief Executive, Margherita Della Valle conceded, “Our performance has not been good enough. To consistently deliver, Vodafone must change.”
During the year, the company saw pressure in its German operations coupled with adverse foreign currency movement. Africa operations though displayed green shoots of growth (0.3%+).
Vodafone is now aiming for a turnaround and is channeling significant investment for fiscal 2024 towards customer experience. Further, it is also slashing 11,000 jobs over the next three years and aiming for a turnaround in Germany along with pricing actions and a strategic review in Spain.
Vodafone shares have plummeted nearly 20% over the past year and are down a further 6.3% in the pre-market session today at the time of publishing.
Looking ahead, for fiscal 2024, Vodafone expects Adjusted EBITDAaL at €13.3 billion alongside €3.3 billion in adjusted free cash flows.
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