Vodafone India logs 16.5 pc growth in first-half revenue

New Delhi: Vodafone India, country's second largest telecom operator today posted 16.5 per cent jump in revenue at Rs 20,476.3 crore for 6 months ended September 30 on account of strong growth in voice minutes and data usage.

India has become the third largest contributor to the UK- based Vodafone Group's services revenues.

The company had logged Rs 17,581.3 crore revenue in the first half of the previous fiscal, 2012-13. Its operating profit or EBITDA (earnings before interest, taxes, depreciation and amortisation) improved by 30.6 per cent to Rs 6,519.1 crore in H1, 2013-14, compared to Rs 4,993 crore in the same period of last fiscal.

The company attributed its revenue growth to voice minutes and data usage. These, however, were partially offset by the effect of seasonality and regulatory changes.

"Increase in our margins is coming from several sources, with one important one (being) a clear focus on acquisition of more profitable customers, we are also focussed on growing the use of mobile Internet," Vodafone India Managing Director and CEO Marten Pieters said at a press conference here.

On revenue growth, he said it is driven by hardening of rates, exponential growth in data and good subscriber base.

"The service revenue has grown 13.5 per cent but our data revenue has grown much faster at 76.5 per cent. The data growth has been driven by the increase in smartphones," he added.

The service revenue of the company grew by 13.5 per cent to Rs 18,481 crore during the 6-month period from Rs 16,282.6 crore in the corresponding period last fiscal.

Pieters said data continues to contribute strongly to business, accounts for 9.0 per cent of service revenue in Q2, 2013-14 fiscal. He said most of the subscribers in India will use Internet via mobile phones but the company doesn't have 3G spectrum in all the circles.

He added that Vodafone will try to get spectrum in all the circles next year.

"We count on pending approval for spectrum trading and the fresh 2100 Mhz auction in 2014," he said.

Pieters said the environment in the country is more positive these days and a regulatory clarity is emerging.

"I am more positive about the environment than before. Vodafone has always asked the government two basic things, we need more spectrum and allocate it in a transparent way and we want a more level playing field, less opportunities for arbitrage created by ambiguous regulations. We do make progress on both fronts," he said.

He said that all is still not fine on the regulatory front.

There are issues related to license extension and re- farming, one time spectrum charges and 3G inter-circle roaming which need to be sorted out, Pieters said.
The total subscriber base of the company at the end of H1, FY'14 stood at 15.55 crore.

The company saw increase in voice revenue per minutes at 46.7 paise during H1, FY'14, from 44 paise in H1, FY'13.

The average revenue of Vodafone per user in a month stood at Rs 200. The net debt of the company stood at Rs 290 billion (Rs 29,000 crore) as of September 30.