UPDATE 1-Telefonica replaces German chief with Czech boss

21.06.2007 | , Reuters
Zpravodajství ČTK


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LONDON, June 21 (Reuters) - Rudi Groeger, the outspoken chief executive of Telefonica's struggling German business, is handing over the day-to-day running of O2 Germany to a colleague joining from the Czech Republic.

Telefonica O2 Europe, which groups the Spanish parent's telecoms businesses outside Spain, said on Thursday Groeger would be replaced by Jaime Smith, the current chief executive of Telefonica O2 Czech Republic.

The Czech unit, which also has both a fixed and mobile business, has been a robust performer and its margins, at a 46.6 percent, are well above its German sister's 19 percent.

Smith will be replaced by Salvador Anglada, the current vice president of the unit's consumer division. Smith and Anglada will report directly to Peter Erskine, the chairman and CEO of Telefonica O2 Europe, and sit on the board of directors at Telefonica.

Groeger will become chairman of a newly created supervisory committee of O2 Germany, which will be set up in October, the company said. The committee is designed to provide insight and advice on the German market.

O2 Germany, which reported its first-ever drop in revenues last quarter after struggling to integrate its fixed-line unit into a core mobile phone business while battling price pressure, plans to cut about 200 jobs this year to help save 80 million euros ($107 million).

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