FILE PHOTO: A woman holds a phone and they go down to a Vodafone store in London, Britain, 16 May, 2017. REUTERS/Neil Hall/File Photo
LONDON (Reuters) – Vodafone said on Friday it would move its mobile-mast business in 10 European markets, a new company that would be able to call it that, in a move that it said would unlock value for the shareholders.
Its Chief Executive, Nick Read, said the tower company, which will have to be made in the next 18 months, which would be the largest in Europe, consisting of approximately 61,700 sites, with 75% in the major markets of Germany, Italy, netherlands, Spain and the united Kingdom.
“In view of the size and the quality of our infrastructure, we believe that there is a substantial opportunity to unlock value for the shareholders, as the record of the major benefits of a network for the information society,” he said.
As the world’s second-largest mobile operator, has announced the spin-off, together with a first-quarter trading update on Friday, the group saw its sales decline by a smaller-than-expected 0.2%. It is said to be a gradual recovery in the weak top-line is here to stay.
It is said that the market conditions in Italy continued to improve and the growth in the retail sector in Germany continued to be strong, which in part was offset by the intense competition in Spain.
Vodafone said it is confident in its guidance for adjusted core earnings of 13.8-14.2 billion euros and the free cash flow generation before spectrum costs from a minimum of 5.4 billion euros.
Reporting by Paul Sandle; Editing by Guy Faulconbridge and Mark Potter