Vodafone India’s Q3 revenue at £937 mn, 13.2 % growth

Vodafone India’s Q3 revenue witnessed 13.2 percent organic growth to register £937 million.

Service revenue increased 13.2 percent driven by continued customer growth, higher voice usage, improved voice pricing and increased data usage. Mobile customers increased by 4.9 million during the quarter giving a closing customer base of 160.4 million at 31 December 2013, up 8.8 percent on last year.

Data usage grew 117 percent, primarily due to a 38 percent increase in mobile internet users and a 65 percent increase in usage per customer. At 31 December 2013 active data customers totalled 45.7 million, including 5.2 million 3G subscribers.

In terms of normal growth, Vodafone India reported a negative growth of 2 percent and this is due to change in Indus Towers accounting process. During the 2013 financial year, Indus Towers revised its accounting for energy cost recharges to operators from a net to a gross basis, to reflect revised energy supply terms.

The impact of this upward revenue adjustment has been excluded from reported organic growth rates. Whilst prior period reported revenue has not been restated, to ensure comparability in organic growth rates, group, country and regional revenue in the prior financial periods have been recalculated based on the new pricing structure.

Vodafone Group’s Q3 organic service revenue declined 4.8 percent to register £9,856 million. The Group’s data usage has doubled that of 3G plans to around 2 million 4G Red customers in Europe. The Group revenue for the quarter declined 3.6 percent to £11 billion, including a 2.1 percentage point impact from adverse foreign exchange movements and a 2.8 percentage point positive impact from M&A and other activity.

Vittorio Colao, chief executive said, “Our emerging market businesses are growing strongly, supported by consistent execution and accelerating demand for data. In Europe, conditions are still difficult, and we continue to mitigate these challenges through on going improvements to our operating model and cost efficiency.”

“In addition, the shift to 4G is gaining momentum and we have seen improving mobile customer net addition trends. We are therefore optimistic that our revenue performance will begin to improve as regulatory headwinds ease and customer appetite for video and content services increases,” added Colao.

“During the quarter we have made further progress in executing our long-term strategy. Project Spring, our £7 billion organic investment program, will accelerate our plans to establish stronger network and service differentiation for our customers, with the first elements of the program already initiated. After the imminent completion of the Verizon Wireless transaction, we will be very attractively positioned, with a strong balance sheet, improved dividend cover and the financial and strategic flexibility to make further investments in the business or returns to shareholders in the future,” commented Colao

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