Telco industry veteran Kevin Russell takes top job at Vocus

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This was published 5 years ago

Telco industry veteran Kevin Russell takes top job at Vocus

By Jennifer Duke

Troubled telco Vocus Group has appointed industry veteran Kevin Russell as group managing director and chief executive, replacing former boss Geoff Horth who stood down in February after "disappointing" financial results.

A former group executive of retail for Telstra and country chief officer and chief executive for Singtel Optus, Mr Russell has also worked for Vodafone and has a 20 year history in global industry roles. It's hoped he can provide renewed leadership for Vocus, known for internet brands iPrimus and Dodo, after a difficult year and a management shake-up.

Former Optus boss Kevin Russell has been appointed CEO of Vocus Group.

Former Optus boss Kevin Russell has been appointed CEO of Vocus Group.Credit: Rob Homer

Vocus chairman Bob Mansfield told Fairfax Media Mr Russell's role in Hutchison UK’s turnaround to a £100 million ($179 million) profit in 2010 from a £900 million loss four years earlier was a sign of what he could do for the company.

In October, Vocus apologised to shareholders for a $1.46 billion full-year loss, after a 12 month period that saw the share price fall 60 per cent.

And a month after the business was restructured to divide the enterprise and wholesale divisions in a bid to restore shareholder value, former Vocus chief executive Geoff Horth stepped down after posting “disappointing” results for the first half of 2018.

The company’s share price fell more than 10 per cent after the interim financial results were posted in February, which reduced profit guidance down to $125 million to $135 million from a previously expected $140 million to $150 million.

Mr Horth was with the company as chief executive since Vocus Communications and M2 Group merged in 2016, and was previously M2 Group boss for five years.

Mr Mansfield described incoming chief executive Mr Russell as a “high experienced and respected” executive in a statement to the Australian Stock Exchange on Monday morning.

“He has an excellent mix of skills and the demonstrated strategic ability to improve business performance,” he said

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“Corporate activity in earlier years has created a platform that makes Vocus competitive with the majors and opens up significant future growth opportunities.

Vocus' share price increased 4.24 per cent to $2.46 by close.

Mr Mansfield also announced that Vocus Group’s New Zealand chief executive Mark Callander would be joining the board as executive director. Both of the appointments begin on May 28.

“Under Mark’s leadership, our New Zealand business is delivering the value promised by earlier transactions and has overcome many of the challenges which currently face our Australian business,” he said.

Interim group chief executive Michael Simmons is returning to his role as chief executive of enterprise and wholesale.

Mr Russell said in a statement the business had “excellent foundations” to build on.

“I am very energised to work with a board that is clearly leading change and renewal from the top.

“In the rapidly changing Australian telecoms landscape, there is a real opportunity to lead this Company to its fullest potential by challenging existing business models and delivering exceptional value to customers.”

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