UPDATE: Vodafone Hires Ex T-Mobile USA Chief To Help Run Europe
June 28 2012 - 7:52AM
Dow Jones News
Vodafone Group PLC (VOD.LN), the world's No. 1 mobile operator
by revenue, has snapped up T-Mobile USA's former chief Philipp Humm
to help run its operations in Europe -- its biggest market by
far.
Mr Humm, who resigned from the U.S. wireless carrier 24 hours
earlier, will become chief executive of Vodafone's Northern &
Central Europe business, overseeing operations in Germany, the
U.K., the Netherlands, Turkey, Ireland, Hungary, the Czech Republic
and Romania, Vodafone said Thursday.
His departure comes as T-Mobile, part of Deutsche Telekom AG
(DTE.XE), struggles to keep apace with larger U.S. rivals and
upgrade its network after its $39 billion tie up with AT&T Inc.
(T) fell apart due to antitrust concerns.
Nearly two months after Vodafone lost its Europe chief
executive, Michel Combes, to French telecom and media company
Vivendi SA's (VIV.FR) mobile unit SFR, the operator said it will
split the role into two new operating regions; Northern &
Central Europe and Southern Europe.
Vodafone's CEO for Italy, Paolo Bertoluzzo, has been given
additional responsibility as CEO of the mobile operator's Southern
Europe operations, which includes Italy, Spain, Portugal, Greece,
Albania and Malta.
Vodafone last month booked a 13% fall in annual net profit to
6.96 billion pounds ($10.82 billion) as dismal economic conditions
in Spain, Italy, Greece and Portugal hit customer spending there,
prompting a GBP4 billion impairment charge. The U.K.-based operator
also warned at the time that conditions in Europe are likely to
remain grim for the rest of the year.
Chief Executive Vittorio Colao said both men would be "strong
additions" to the executive team.
Mr Humm will start in his new role on Oct. 1, and Mr
Bertoluzzo's position is effective from Aug. 1.
Vodafone's decision to appoint two CEOs in Europe suggests that
succession to the top job "is not imminent", Sanford C. Bernstein
analyst Robin Bienenstock said, noting that the head of Europe has
traditionally been the stepping stone to the top job at Vodafone.
Combes was also "stretched incredibly thin across loads and loads
of countries," she said. Ms Bienenstock has an outperform rating on
Vodafone.
At 1028 GMT, Vodafone shares were steady at 181 pence, valuing
the company at GBP89.08 billion ($138.39 billion), in a lower
London market.
Write to Lilly Vitorovich at lilly.vitorovich@dowjones.com;
Twitter: @LillyVitorovich