Operator and its auditor in legal tussle
Vodafone (VOD) has dropped PwC as its auditor, according to Irish newspaper the Independent. This move comes as Vodafone and PwC are embroiled in a legal dispute over the collapse of mobile phone retailer Phones4U. The retailer collapsed in 2014 and PwC was brought in as its administrator.
On December 18, PwC filed a damage claim against Vodafone and other mobile operators in relation to the collapse of Phone4U, according to a report from The Times. The report further stated that some agencies have accused mobile operators Vodafone, EE, and O2 of colluding to collapse Phones4U. The retailer collapsed after these mobile companies did not renew their contracts with it.
Search for PwC replacement is on
According to Vodafone, PwC will continue to serve as its auditor until the end of its current fiscal year after which it expects to bring a new auditor on board. The company expects the process of recruiting a new auditor to conclude by February 2019. Vodafone’s fiscal year begins in April and ends in March.
Vodafone posted loss in the first half
Vodafone generated revenue of about $25 billion and posted a loss of $8.9 billion in the six months through September 2018. AT&T (T) and Verizon (VZ) posted profits of $9.8 billion and $9.0 billion, respectively, in the six months through September 2018. T-Mobile (TMUS) and Sprint (S) posted profits of $1.6 billion and $372 million, respectively, in the six months through September 2018.