Vodafone Boss Warns of Brexit Uncertainty Threat to UK Business

Strategic Insights -

Vodafone chief executive Vittorio Colao has urged the UK to remain in the European Union ahead of a potential referendum, citing the uncertainty of an exit vote as a threat to business. Colao's comments come amid growing speculation that the UK could vote to leave the EU in the next year, following the Conservatives' surprise election win. As the UK's largest telecoms company, Vodafone has seen its sales decline in recent years, but Colao has seen signs of stabilisation in the European market, driven by a surge in demand for 4G data.

Key Takeaways:

  • Vodafone chief executive Vittorio Colao has called for the UK to remain in the European Union, citing the benefits of a single, digital market for the company and its customers.
  • Colao has warned that uncertainty over a potential Brexit could damage business, but that Vodafone is large enough and diverse enough to cope with the uncertainty.
  • Vodafone has seen its first growth in services revenues for nearly three years in the quarter to March, with a 0.1% increase.
  • European markets have struggled for years, but Colao has seen signs of stabilisation amid a huge surge in demand for 4G data.
  • Vodafone has over 20 million 4G customers in 18 markets, with data volumes up 81% year-on-year.
  • In the UK, data demand has "exploded", with 3 million 4G customers and data volumes up 81% year-on-year.
  • Vodafone expects to manage its first growth in underlying profits since 2009, guiding to between PS11.5 billion and PS12 billion this year.
  • Colao has also warned over the competition threat to the telecoms sector posed by BT's PS12.5 billion merger with EE, stating that it could end up "remonopolising" the market.

Statistics:

  • Vodafone sees its first growth in services revenues for nearly three years, with a 0.1% increase.
  • European markets have struggled for years amid a squeeze on consumers and enforced price cuts from regulators, but Colao has seen "signs of stabilisation" in Europe amid a huge surge in demand for 4G data.
  • Vodafone has over 20 million 4G customers in 18 markets, with data volumes up 81% year-on-year.
  • In the UK, data demand has "exploded", with 3 million 4G customers and data volumes up 81% year-on-year.
  • Vodafone expects to manage its first growth in underlying profits since 2009, guiding to between PS11.5 billion and PS12 billion this year.
  • BT's PS12.5 billion merger with EE poses a competition threat to the telecoms sector, with Colao stating that it could end up "remonopolising" the market.

Sources:

  • Vodafone chief executive Vittorio Colao
  • The Standard (London newspaper)
  • Russell Lynch (journalist)
  • @russ_lynch (Twitter handle)