Vodafone 1997 Annual Report Download - page 3

Vodafone Group Plc Annual Report & Accounts for the year ended 31 March 1997
The Group's overseas business made excellent progress and proportionate subscribers on its networks
increased by 564,000, almost doubling the number at the start of the year. With overseas growth now
faster than that in the UK, and as many of the countries in which the Group operates have under-
developed markets, the opportunity exists for strong profit growth in the years ahead.
Throughout the year the Group continued to implement its strategy of developing its existing business,
both in the UK and overseas. In the UK it acquired the two thirds of the share capital of General Mobile
Corporation Limited, the parent company of Talkland International (UK) Limited, it did not already own.
It also acquired The Peoples Phone Company Plc (now Peoples Phone Limited) and 80% of Astec
Communications Limited, making it a wholly owned subsidiary. These three Service Providers
significantly increase the Group's presence in the retail market.
Overseas, the Group acquired a further 6% of the equity of Société Française du Radiotéléphone SA,
enlarging its holding to 16%, and has an option to increase this further, to 20%, before the end of
December 1997. It also acquired a further 10% of Panafon SA and Panavox SA in Greece, both these
companies becoming 55% owned subsidiaries, and increased its interest in the Swedish network operator,
Europolitan, to just over 20%. Europolitan sold its 20% interest in Sonofon, a Danish network operator, in
the second half of the financial year and, as I reported last year, in April 1996 the Group sold its interest
in Orbitel Mobile Communications Limited to L M Ericsson and 5% of Vodafone Pty Limited, the
Australian network operator, to AAP Information Services Pty Limited.
The Group's core business of mobile telephony is an exciting and rapidly growing industry. In the UK,
Vodafone Limited will extend its investment in the network as far and as fast as it can, consistent with
providing high quality service to its customers. The Group will continue to strengthen its position in
distribution, both to ensure it has good access to its customers and to ensure it has sufficient retail outlets
to meet the needs of the many potential customers yet to own a mobile phone. It will also continue to
develop its related businesses, particularly data and value added services.
Internationally, the priority will be to increase shareholdings in countries where the Group already has a
presence, rather than to seek new licences.
None of this would be or will be possible without the enthusiasm and dedication of the Group's employees
and, on your behalf, I wish to thank them all for their contribution to this year's success. The marketplace
is becoming increasingly competitive and their efforts have enabled Vodafone to maintain its leadership.
Since my last report to you, a number of changes to your Board have been announced. David Henning left
in June 1996 and Geoffrey Lomer retired from the Board in March 1997. We thank them for their service
and wish them well in the future. On 31 December 1996, Gerry Whent retired as Chief Executive and
became non-executive Deputy Chairman. Gerry's achievements with the Company cannot be overstated.
Under his leadership the Vodafone Group developed into one of the world's most successful mobile
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