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Vodafone Germany Backs De Groot in Turnaround Push

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Vodafone Deutschland has given CEO Marcel de Groot a longer runway in Germany.

The operator extended his contract by three years. It also named Michael Bird as Managing Director and Finance Director. Bird starts on 1 September and joins the German management board.

The decision gives the German business more leadership stability. That matters in a market under close group-level scrutiny. Germany remains Vodafone Group’s largest European market. Yet it has weighed on profits for several years.

De Groot took the top job on 1 April 2024. His appointment followed a turbulent leadership period. Former Microsoft executive Philippe Rogge left after less than two years. Before him, Hannes Ametsreiter was removed after seven years in charge.

That history makes the extension significant. It signals confidence in De Groot’s early work. Supervisory board chair Rüdiger Grube credited him with guiding the company through difficult conditions. He also pointed to restored revenue growth and a new development plan.

However, the German unit still faces a demanding turnaround. The business has pursued a value-over-volume strategy. In simple terms, it focuses on higher spending customers. It accepts lower customer numbers when margins improve.

Group CEO Margherita Della Valle defended that approach in May. She spoke during the earnings call for the fourth quarter. The financial year ended at the close of March.

The strategy delivered a clear rise in broadband ARPU. ARPU means average revenue per user. Operators use it to track customer spending each month. A price increase helped lift this figure in Germany.

Still, the move carried a cost. Vodafone Deutschland lost 202,000 broadband customers over the financial year. Its fixed-line customer base fell below 10 million. That decline shows the pressure behind the stronger revenue metrics.

For telecoms observers, the message is mixed but important. The company wants better returns from its network assets. Yet it must avoid weakening its customer base too far. Germany’s broadband and mobile sectors remain highly competitive.

Bird’s arrival adds financial experience to the turnaround effort. He has worked at Vodafone Group since October 2015. He first focused on mergers and acquisitions. In 2019, he became Group Mergers and Acquisitions Director.

Since May 2024, Bird has served as CFO of Vodafone Investments. He has also worked closely with the German operation. That background should help align local execution with group strategy.

He replaces Carmen Velthuis, who steps down on 31 August. Velthuis spent 11 years with the company. She led finance in Germany from March 2022. Vodafone credits her with supporting transformation and simplification work.

De Groot now has more time, stronger backing, and a new finance lead. The next test will be execution. Investors and industry watchers will expect growth without deeper customer losses.

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