Vodafone rings the changes at the top
May 28 2008 by Iain Laing, The Journal
THE boss of mobile phone giant Vodafone has quit after five years turning around the company’s fortunes.
Arun Sarin will step down at the end of July to hand over to deputy chief executive Vittorio Colao. Sarin had been credited with bringing the company back into the black after 2006 saw losses and a shareholder revolt.
The news yesterday came as Vodafone reported its full-year figures, revealing a 5.7% rise in adjusted operating profits of £10.1bn for the 12 months to March 31. Underlying pre-tax profits rose 2% to £8.93bn, according to the group.
Vodafone chairman Sir John Bond paid tribute to Sarin and the “tremendous” job he has done during his tenure.
He said: “He has led the company with distinction and navigated Vodafone through a period of rapid change.”
Indian-born Sarin, 53, joined Vodafone’s board in 1999 and became chief executive in July 2003.
He went through a rocky patch two years ago, when nearly 10% of Vodafone shareholders voted against his re-election as chief executive.
But the company has since outperformed City profit forecasts and enjoyed big revenue growth in fast-growing markets such as India and Turkey.
In January, Vodafone, whose headquarters are in Newbury, Berkshire, revealed that the majority of its customers are now outside western Europe.
Sarin also helped steer the group through the aftermath of the dotcom crash, and has boosted the firm’s customer base from 120 million to 260 million globally.
Sarin said: “It has been a privilege to lead Vodafone for the last five years and to have been involved in the company for such a long time. I feel that I have accomplished what I set out to achieve, particularly in developing and implementing a new strategy. I am very proud of what Vodafone and its 71,000 people have achieved and the good momentum we have in the marketplace.
“I know that the business is in capable hands with Vittorio Colao. Having worked with him for many years I know that he has the experience and vision to take Vodafone on to future success.”
Shares in Vodafone rose 2% in early trade as the market reacted well to the firm’s results and Mr Sarin’s succession plans.
Analysts said that annual group revenues of £35.5bn, up 14.1% and organic growth of 4.2%, came in marginally higher than the £35.2bn to £35.4bn range that had been forecast.
Mark James, Collins Stewart analyst, said the group’s full-year results and outlook were strong.
He added that Mr Sarin’s departure was “a little earlier than many had anticipated” and said his successor now faced the challenge of pursuing growth in emerging markets and cutting costs in developed markets..
