Vodafone Posts Flat Revenue In FY17 Despite Tough Competition

Despite touch competition and lucrative free offers from Reliance Jio Vodafone registered a flat revenue in FY 2017 as compared to its performance in FY2016. In 2017 the British born telecom firm posted revenues of Rs 42,956 crore compared to Rs 43,169 crore in FY 2016, showing a marginal dip of 0.5%.

If put in perspective, considering the humongous growth in data consumption across operators, this marginal dip in revenue appears significant. The operator ideally should have shown a better performance with an increase in revenue growth.

However, the entry of reliance Jio, has curtailed the growth of all the big operators in the country including Bharti Airtel and Idea Cellular.

Last week Idea Cellular posted a loss of Rs 325 crore attributing competition and free offer from the new operator. A week before that Bharti Airtel posted 72% dip in its Q4 profit.

For Vodafone in FY 2017, data consumption grew by almost 30% to record Rs 8467 crore revenue from data business showing a revenue growth of 5%. The company has a total of 66.9 million data users of which 43.5 million use more than 1 MB data per month. The company said its data consumption growth was driven by increase in smartphone penetration in its network. Of all the users, 35.5% use a smartphone, the company said.

Vodafone India’s data ARPU for 2017 was Rs 140 compared to Rs 160 in FY 2016. The company attributed this fall to the free data offer from the new entrant, read Jio.

“Amidst an unprecedented and intensely competitive environment, we delivered a stable while recording a strong gain of 0.7ppt in RMS YTD Dec 16; increasing our customer base past the 200 million subscriber mark; and expanding our Vodafone SuperNet 4G presence to 2,400 towns by utilizing the spectrum bought during the year, We continue to delight and reward customers with innovative and meaningful value propositions including SuperHour, exciting 4G offers, richer content under Vodafone Play and added benefits for Vodafone RED customers. We remain committed to playing our role in enabling Digital India by fulfilling the evolving needs of increasing volumes, speed and innovative solutions for both retail and enterprise customers,” said Sunil Sood, Managing Director and CEO, Vodafone India.

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