Vodafone stock got a boost today after company CEO Nick Read announced plans to cut costs.
The announcement from Read comes during the company’s half-year report for the six months that ended on Sept. 30, 2018. During this report, the CEO outlines what the telecommunications conglomerate’s plans are for the future.
Here is Read’s statement about future plans for Vodafone (NASDAQ:VOD).
“Looking ahead, my new strategic priorities focus on driving greater consistency of commercial execution, accelerating digital transformation, radically simplifying our operating model and generating better returns from our infrastructure assets. Our goal is to deepen customer engagement through a broader offering of products and services, and to deliver the best digital customer experience, supported by consistent investment in our leading Gigabit networks. We expect that this will drive revenue growth, reduce churn and lower our European net operating expenses by at least €1.2 billion by FY2021.
As part of our effort to improve returns, we are creating a virtual internal tower company across our European operations, and we are reviewing the best strategic and financial direction for these assets.”
The announcement from Nick Read about plans for the company in the future is good news for Vodafone stock. It also comes as the company reports revenue of €21.80 billion and a loss of €7.80 billion for the first half of 2018.
VOD stock was up 8% as of Tuesday afternoon, but is down 42% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.
