Vodafone Group Plc raised the bar on UK cost cuts, saying Thursday it now sees annual savings reaching £1 billion by fiscal 2032, which it pegged at roughly $1.3 billion. The new targets are the first major update since Vodafone took full control of VodafoneThree earlier this year. It also pointed to the carrier that will be formed in 2025 when Vodafone and CK Hutchison Holdings Ltd. combine their UK businesses.
Cost-cutting targets reveal what management thinks the business can actually earn. Market Briefs covers telecom free every morning.
Management said it has made "strong progress" against VodafoneThree's initial cost plan, so the target for the year ending March 2030 was lifted to £800 million, up from £700 million. The UK plan leans on shutting down duplicate sites and upgrading the two networks so they run more efficiently. Vodafone added that it expects these moves to help lift revenue as well.
By 8:26 a.m. on Thursday, Vodafone shares were off 0.6% at 126.95 pence, though they remain up about 28% for the year. The UK push sits inside CEO Margherita Della Valle's drive to simplify the group by doubling down on key markets and selling out of others. For your wallet, this is a classic case of cost discipline meeting scale: if the company actually banks these savings and nudges revenue higher, it could reshape how much cash the UK unit throws off over time.
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