VodafoneThree raises cost-cutting target to £1bn after merger
Vodafone has hiked its UK cost-saving target to £1bn a year as the telecoms giant looks to boost profits following its merger with Three. The FTSE 100 company said on Thursday it now expects VodafoneThree to deliver £1bn in annual savings by 2032, up from its previous target of £700m by 2030. The upgraded target [...]
Vodafone has increased its cost-cutting target for the merged VodafoneThree company to £1 billion annually, aiming to enhance profits following the successful merger with Three. The company now anticipates the combined entity to generate £1 billion in annual savings by 2032, a significant rise from the previously set target of £700 million by 2030.
The upgrade in the target is attributed to Vodafone's full control of the UK's largest mobile operator, following its £4.3 billion acquisition of Three. VodafoneThree's CEO, Margherita Della Valle, expressed optimism about the merger's financial potential, emphasizing the company's ambition to transform the UK market by scaling investments and enhancing network quality and customer experience.
The new targets also include mid-to-high single-digit annual growth in adjusted earnings between 2025 and 2032 and a more than tripling of operating free cash flow over the same period. The additional savings are expected from combining and streamlining mobile networks, along with efficiencies stemming from Vodafone's full ownership of the business.
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