Vodafone focuses on cost cutting

 

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By Stuart Turton

Posted on 11 Nov 2008 at 15:12

Vodafone has cut its full-year revenue outlook and announced plans to cut £1 billion in costs.

Overall revenue between April and September rose 17.1% to £19.9 billion on the back of "foreign currency benefits". However, the company trimmed nearly a billion off its annual revenue outlook, which it expects to be between £38.8 billion and £39.7 billion.

The company also cut its expectations in July to around £39.9 billion, citing a difficult earning environment.

"Operating conditions are expected to continue to be challenging in Europe, given ongoing competitive and regulatory pressures and recent economic conditions in certain markets," the group says in a statement.

"We expect to reduce current operating costs by approximately £1 billion per year by the 2011 financial year to offset the pressures from cost inflation and the competitive environment and to enable investment in revenue growth opportunities."

Vodafone declined to say whether it would make job cuts, though it admitted it will look at outsourcing work to cut costs.

Vodafone says it intends to focus on existing customers, rather than growing its user base. This effort will primarily be focused around mobile broadband, and emerging markets.

"We are already represented in most of the key emerging markets, where significant growth is expected in the coming years," the company says. "Our principal focus now will be on execution in these markets."