Key Takeaways

  • Vodafone Group Chief Financial Officer Luka Mucic will step down, effective no later than early 2026, to become CEO of German real estate management company Vonovia. The two companies recently confirmed the news in separate announcements. Vodafone stated in a press release on Wednesday (April 9) that it has initiated a "rigorous selection process" to find a successor.
  • Mucic has served as CFO of the Berkshire, UK-based telecom operator since 2023. In his statement on Wednesday, he said the company has "undergone an extensive transformation program over the past two years to reshape the business portfolio, simplify the organizational structure, and refocus on customers and operational excellence."
  • As for Vonovia, the supervisory board of the Bochum, Germany-based real estate company has unanimously voted to approve Mucic as its next CEO. This move comes as the company seeks to return to growth after facing sustained headwinds in the European housing sector. Vonovia said Mucic will succeed current CEO Rolf Buch "at the turn of 2025/2026 at the latest."

In-Depth Analysis

Before becoming CFO of Vodafone in September 2023, Mucic spent 27 years at software company SAP, holding various executive positions including member of the executive board, CFO, and head of global finance, according to his LinkedIn profile.

The SAP veteran joined Vodafone two years ago as the company was advancing its transformation plan to reverse weak performance. Vodafone appointed Margherita Della Valle, a 31-year company veteran, as CEO in January 2023, after she had previously served as group CFO for five years, according to her LinkedIn profile.

Vodafone CEO Della Valle said in the press release that Mucic "played a key role in resetting capital allocation priorities and strengthening operational excellence. I wish him every success in the next phase of his career as he returns home to take on a CEO role."

The transformation plan, led by the restructured leadership team, aims to "simplify" the organization through measures such as cutting 11,000 jobs and refocusing resources on the Vodafone Business division serving European corporate clients, according to CNN reporting from May 2023.

As part of the plan, Vodafone also completed the sale of its Italian operations to Swisscom for €8 billion in January. Vodafone said it plans to use the proceeds to reduce net debt and aims to return up to €2 billion to shareholders.

In the third quarter of fiscal 2025, Vodafone reported group total revenue growth of 5.0% to €9.8 billion, according to a February trading update. Group adjusted EBITDAaL also grew 2.2% to €2.8 billion. These results came after the sale of the Italian and Spanish businesses, and following approval by the UK Competition and Markets Authority (CMA) for the merger with Three, a 3G network operator.

Mucic will return to his home country of Germany to serve as CEO of Vonovia, a familiar environment for him. The real estate company is also hoping to improve its growth performance after last year's downturn in the European housing market.

Mucic said in the press release statement: "I sincerely thank the entire Vodafone team. While I look forward to returning to my home country of Germany for the next step in my career, being part of shaping this transformation has been highly rewarding, and I am confident in Vodafone's future success."

As part of its own transformation plan, Vonovia aims to achieve adjusted EBITDA of between €3.2 billion and €3.5 billion by 2028—which the company said in March represents a 30% increase over its full-year 2024 results. As part of its growth strategy, the company also plans to resume new construction projects and invest in "innovative technologies," according to a March announcement.

Vonovia recorded a net loss for the third consecutive year, with a full-year 2024 net loss of €962 million, according to its annual report, following a net loss of approximately €6.8 billion in 2023 and €669 million in 2022.

Vodafone declined to comment further beyond the press release. Vonovia did not immediately respond to a request for comment.