Italy, Portugal, Greece, Spain, Australia: Or Too Then Comments On Vodafone's Rusults
Here is an extraordinary slide of revenue past times jurisdiction from the in conclusion Vodafone conference call...
Revenue is non bad inward growing emerging markets (Turkey has larn a terra firma of smartphones). Revenue is bad inward Italy, Portugal, Hellenic Republic as well as Spain. The biggest driver in that location is mobile termination rates - these are markets where you lot pay to brand a telephone telephone to a mobile telephone as well as these calls are discretionary.
The shocker though is Commonwealth of Australia - as well as it has been a shocker for a while. Revenue performance inward Commonwealth of Australia is worse than whatever Southern European country.
This was only predictable.
In Commonwealth of Australia Three ("3") merged alongside Vodafone as well as network performance was abysmal. This video went upwardly on YouTube a little over a twelvemonth agone parodying the (combined) company.
That video has roughly 200 grand views - or 1 per centum of the Australian population. These companies spent a lot of coin on advertising as well as sports sponsorship: all wasted because of high credibility parodies as well as discussion of mouth. The results verbalise for themselves equally this press article demonstrates:
My guess, inward damage of lost customers as well as futurity profits the materials upwardly volition air current upwardly beingness worth something similar a billion dollars.
And it takes a special customer-service incompetence to larn this bad. One disgruntled client who wanted to hold upwardly permit out of their contract because the service did non operate injure upwardly setting upwardly a website (vodafail.com) to permit customers grieve. Eventually Vodafail did permit the victim out of their contract - but when it takes a successful social media stimulate to larn the companionship to exercise the correct thing in that location is something deeply incorrect alongside management. [Vodafail did non come across its purpose of the obligation - it did non deliver a telephone service...]
The #vodafail tag is all the same active inward Twitter equally the next shows:
Yes - the companionship all the same converts iPhones to iPods as well as tin accept one-half an hr to update twitter. This work is non yet solved.
But to hold upwardly fair it is nowhere nigh equally bad equally during 2011 - as well as the frequency of tweets alongside the #vodafail tag is declining. Moreover the Vodafail website has gone (relatively) tranquillity noting that:
This was an execution stuff-up of the offset order. And it took until March 2012 for them to parachute inward a novel CEO (Bill Morrow) who has (rightly) declared that his undertaking is network, network, network as well as network...
But he also has to larn dorsum trust - peculiarly inward a delineate of piece of work organisation that asks people to sign 24 calendar month contracts as well as and thus won't permit them out when they can't come across their cease of the contract (their cease beingness to brand your telephone work). He has made a start - allowing a xxx hateful solar daytime let-out clause: Here are the terms:
I don't envy Bill Morrow his job. And I wonder why it took 12 months subsequently Vodafail was the but of musical parody to genuinely alter the CEO. Surely in that location are plenty network-technical-junkies inward Vodafone who would similar a 6 months emergency working gig inward Commonwealth of Australia to larn the network fixed up.
The whole thing petrifies me because I ain Vodafone stock (despite this problem) as well as they are doing a much bigger integration inward the Britain where they are merging alongside Cable as well as Wireless. Stuffing that i upwardly would affair much to a greater extent than than my piddling local market.
Oh for the erstwhile days of stock picking
All of this makes me pino for the erstwhile days of stock picking. Vodafone (as a stock) is currently driven past times 2 things:
(a) the damage on which it tin extract value from its 45 per centum stake inward Verizon Wireless, and
(b) the value/profit suggestion of their (strained) European mobile networks business.
The offset is a corporate governance concern, the minute a macroeconomics concern.
Commonwealth of Australia - a pea-sized marketplace at the border of the globe - is only driven past times competitive positioning (once good, at i time less good) as well as execution (which has been abysmal).
In the erstwhile days stock picking was a affair of agreement competitive dynamics as well as delineate of piece of work organisation execution. If you lot bought a stock at a mid-teens multiple where the competitive dynamic did non deteriorate as well as the management executed you lot did fine. If you lot paid 12 times you lot did well. If you lot paid ix times you lot made-out-like-a-bandit.
These days I pass much of my fourth dimension considering whether macroeconomics tin brand a companionship blow upwardly (macro concerns) or whether the management is going to bag from me (governance concerns).
Vodafone Commonwealth of Australia as well as its problems remind me of the pitfalls of yesteryear's stock picking. Whether that globe is to a greater extent than fun or less fun I volition exit to readers imagination - but the outcomes were to a greater extent than oftentimes than non to a greater extent than palatable for the wider public.
John
Revenue is non bad inward growing emerging markets (Turkey has larn a terra firma of smartphones). Revenue is bad inward Italy, Portugal, Hellenic Republic as well as Spain. The biggest driver in that location is mobile termination rates - these are markets where you lot pay to brand a telephone telephone to a mobile telephone as well as these calls are discretionary.
The shocker though is Commonwealth of Australia - as well as it has been a shocker for a while. Revenue performance inward Commonwealth of Australia is worse than whatever Southern European country.
This was only predictable.
In Commonwealth of Australia Three ("3") merged alongside Vodafone as well as network performance was abysmal. This video went upwardly on YouTube a little over a twelvemonth agone parodying the (combined) company.
That video has roughly 200 grand views - or 1 per centum of the Australian population. These companies spent a lot of coin on advertising as well as sports sponsorship: all wasted because of high credibility parodies as well as discussion of mouth. The results verbalise for themselves equally this press article demonstrates:
Hutchison Telecoms Australia, l per cent stakeholder inward Vodafone Hutchison Commonwealth of Australia (VHA), announced yesterday afternoon that VHA lost 178,000 customers as well as reported a loss of AU$260.2 meg for the offset vi calendar month of 2012.
In what has been a disastrous eighteen months for the company, next its infamous network outages inward 2011, Vodafone's client base of operations slid below vii meg to 6.8 million, from a high of 7.5 meg inward 2010.Note the scale of this stuff-up. The population of Commonwealth of Australia is 22.6 meg as well as in that location are roughly the same pose out of mobile phones. They lost 700 grand customers or 3 per centum of the population. [This is inward a delineate of piece of work organisation where a i per centum movement is a large alter inward share...]
My guess, inward damage of lost customers as well as futurity profits the materials upwardly volition air current upwardly beingness worth something similar a billion dollars.
And it takes a special customer-service incompetence to larn this bad. One disgruntled client who wanted to hold upwardly permit out of their contract because the service did non operate injure upwardly setting upwardly a website (vodafail.com) to permit customers grieve. Eventually Vodafail did permit the victim out of their contract - but when it takes a successful social media stimulate to larn the companionship to exercise the correct thing in that location is something deeply incorrect alongside management. [Vodafail did non come across its purpose of the obligation - it did non deliver a telephone service...]
The #vodafail tag is all the same active inward Twitter equally the next shows:
Yes - the companionship all the same converts iPhones to iPods as well as tin accept one-half an hr to update twitter. This work is non yet solved.
But to hold upwardly fair it is nowhere nigh equally bad equally during 2011 - as well as the frequency of tweets alongside the #vodafail tag is declining. Moreover the Vodafail website has gone (relatively) tranquillity noting that:
More recently, traffic to Vodafail.com has declined significantly. Having achieved the destination of raising awareness as well as promoting concrete activity inward early on 2011, nosotros receive got at i time reached the indicate of closing Vodafail to novel complaints. The site volition stay online for equally long equally possible equally a reminder as well as an event of what is possible when nosotros percentage our experiences.
This was an execution stuff-up of the offset order. And it took until March 2012 for them to parachute inward a novel CEO (Bill Morrow) who has (rightly) declared that his undertaking is network, network, network as well as network...
But he also has to larn dorsum trust - peculiarly inward a delineate of piece of work organisation that asks people to sign 24 calendar month contracts as well as and thus won't permit them out when they can't come across their cease of the contract (their cease beingness to brand your telephone work). He has made a start - allowing a xxx hateful solar daytime let-out clause: Here are the terms:
The novel Vodafone network - rolling out now
We're confident you'll hold upwardly happy alongside our novel network, thus at i time nosotros guarantee it.
Upgrade on a novel Postpaid Mobile or Mobile Broadband Modem service as well as if you're non happy alongside your network sense you lot tin cancel your contract inside the offset xxx days. No cancellation fees, merely pay for what you've used, until cancellation is finalised1.
We're investing $1 billion on rolling out a novel Vodafone network to give you:
- Stronger signals
- Faster downloads
- Better indoor coverage
Than always earlier from Vodafone. Find out more Vodafone.com.au/network
Trust is a special thing inward business. Once it is gone I don't know how much cricket you lot demand to sponsor to larn it back.I don't envy Bill Morrow his job. And I wonder why it took 12 months subsequently Vodafail was the but of musical parody to genuinely alter the CEO. Surely in that location are plenty network-technical-junkies inward Vodafone who would similar a 6 months emergency working gig inward Commonwealth of Australia to larn the network fixed up.
The whole thing petrifies me because I ain Vodafone stock (despite this problem) as well as they are doing a much bigger integration inward the Britain where they are merging alongside Cable as well as Wireless. Stuffing that i upwardly would affair much to a greater extent than than my piddling local market.
Oh for the erstwhile days of stock picking
All of this makes me pino for the erstwhile days of stock picking. Vodafone (as a stock) is currently driven past times 2 things:
(a) the damage on which it tin extract value from its 45 per centum stake inward Verizon Wireless, and
(b) the value/profit suggestion of their (strained) European mobile networks business.
The offset is a corporate governance concern, the minute a macroeconomics concern.
Commonwealth of Australia - a pea-sized marketplace at the border of the globe - is only driven past times competitive positioning (once good, at i time less good) as well as execution (which has been abysmal).
In the erstwhile days stock picking was a affair of agreement competitive dynamics as well as delineate of piece of work organisation execution. If you lot bought a stock at a mid-teens multiple where the competitive dynamic did non deteriorate as well as the management executed you lot did fine. If you lot paid 12 times you lot did well. If you lot paid ix times you lot made-out-like-a-bandit.
These days I pass much of my fourth dimension considering whether macroeconomics tin brand a companionship blow upwardly (macro concerns) or whether the management is going to bag from me (governance concerns).
Vodafone Commonwealth of Australia as well as its problems remind me of the pitfalls of yesteryear's stock picking. Whether that globe is to a greater extent than fun or less fun I volition exit to readers imagination - but the outcomes were to a greater extent than oftentimes than non to a greater extent than palatable for the wider public.
John
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