Telekom Austria brings SE Europe management in line with América Móvil model

Telekom Austria detailed plans to cut the number of managers in its South East Europe operations, as part of a reorganisation that will align regional management with parent América Móvil's approach.

The Austrian operator will next month reduce the number of managers covering its current SE Europe operation from 12 to eight as it reshuffles its regional operations, Friedl News reported. The operator's plan affects its businesses in Serbia, Macedonia, Croatia and Slovenia, which comprise its current SE Europe division.

Under the plan, Telekom Austria plans to merge its Serbian and Slovenian businesses into one unit, with Croatia and Macedonia forming a separate second division.

Such a management system would bring the company more into line with parent América Móvil's approach to regional management, Friedl News noted.

There is no word on whether Telekom Austria plans to also integrate the separate consumer brands it operates in each of the four countries affected by the structural changes. The operator currently sells services under the Si.mobil brand in Slovenia, Vipnet in Croatia, VIP Mobile in Serbia, and VIP Operator in Macedonia.

The operator confirmed that the current boss of Si.mobil, Dejan Turk, will head up that new combined business, Telecom Paper reported, citing an Austrian Press Agency article. The Croatia/Macedonia operation will be led by Jiri Dvorjancansky, the former head of Vipnet.

Telekom Austria's Croatian business was its only unit to register a year-on-year increase in revenues during the first quarter of 2015, as group revenues declined 2 per cent year-on-year. However, that decline was offset by a cost cutting programme that helped the operator to more than double net income to €92.7 million ($100 million).

The performance encouraged Telekom Austria's management to stand by full year earnings targets of a rise in revenue of around 2 per cent, and expenditure of between €700 and €750 million.

For more:
- see this Friedl News article
- view this Telecom Paper report (sub. required)

Related Articles:
Telekom Austria more than doubles Q1 profit as revenue declines slow
Telekom Austria tests targeted MVNO strategy with Fenercell Austria
Tele2 relaunches an MVNO in Austria
Telekom Austria announces €1B capital increase
Austria's consumer prices rise following mobile market consolidation