Vodafone’s Indian Arm Posts 13.8 % Growth In Revenues; Expects Fierce Competition

Vodafone,world’s largest mobile phone operator by revenues has posted 13.8% revenue growth for its Indian operations. The revenues increased to £767 Million from £674 Million in a year ago period. Vodafone worldwide revenues rose 10.3% to to £11.5 billion.

Vodafone’s Indian operations recorded revenues of £1485 Million for half year ended Oct-2009 whereas the EBITA was £357 Million. The important thing to note is that both revenues and EBITA is down even against H2 FY2008-09 so the revival in economy has had very little effect on its performance.

Messaging revenues contributed just 4 per cent (£28 Million) of total revenues while data revenues came in at £42 Million. Vodafone India ended the quarter with a subscriber base of 9.14 Crores against 6.01 Crores in corresponding quarter last year.

Indian market witnessed severely high churn-out rate of 38.1% much higher compared to Vodafone’s global operations.ARPU(Average Revenues Per User) for Indian operations was down 6.5 % Q-o-Q to Rs. 209 against Rs.222 reported in sequential quarter.

Bharti Airtel posted a mild revenue increase of 1.4% at Rs9,772.2 crore whereas RCom’s revenue fell 9.2% to Rs5,310 crore from Rs5,850 crore in the third quarter results.

Vodafone expects a much fierce competition in Indian telecom market going forward. This contemplation was also reflected in its results as majority of growth was contributed from surging subscriber base and increase in Voice usages thus negating the effect of declining ARPU’s and Voice tariffs.

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