Vodafone chases savings even though profits look good
Vodacom parent, Vodafone, reported £4.82 billion in net profits for the first half of its fiscal year, but that won't stop it from cutting staff and implementing other cost-cutting measures. The company plans to double its savings project to cut £2 billion in costs by 2012. In mature markets like the UK (and, increasingly, South Africa), Vodafone is having a hard time. Competition is driving down prices and new areas of growth like high-end data services require big investments. But in other markets the good times still roll; the Indian division of Vodafone is outpacing the sub-continent’s dominant Bharti Airtel (onetime possible owner of MTN) when it comes to new customer acquisition.
Read more: Business Week, Wall Street Journal