VODAFONE INDIA REVENUE RISES 12.6% IN FY15

Continuing the trend of the 2014 fiscal, Vodafone India has ended the 2015 fiscal in the black. FY14 was the first year when it made net profits ever since starting operations independently in 2007. The company, an arm of UK’s Vodafone Group, declined to share the net profit numbers.

Driven by growing consumer base and higher data usage, Vodafone India reported a 12.6 per cent increase in service revenue to ~42,352 crore. Its earnings before interest, tax, depreciation, and amortisation (Ebitda) increased 16.2 per cent to ~12,605 crore. Service revenue in the quarter ended March went up by 12 per cent to ~10,887 crore. Vodafone India emerged as the third-largest contributor to the group's service revenue in FY14 and retained the position in FY15.

We continue to gain market share on the back of higher usage of mobile internet, managing director and chief executive officer Sunil Sood said. The second-largest telecom service provider added 17.2 million subscribers in FY15, clocking an increase of 10.4 per cent. The total subscriber base stood at 183.8 million as of March 31. The rural subscriber base also grew at a healthy 9.5 per cent to 97.9 million.

The average revenue per user grew by a nominal 1.69 per cent to ~202 while the average revenue per minute (ARPM) grew 6.54 per cent to 50.1 paise. However, the voice ARPM declined 0.45 per cent to 37.3 paise.

Chief financial officer Thomas Reisten said the minutes of usage per subscriber continue to be under pressure. “What is happening in the market is different from what I would ideally like to see. Every time you increase the tariff there is a drop in usage. You have to balance the two,” Sood said.

The browsing revenue grew by a sharp 65.5 per cent to ~5,690 crore during the year. Data users (consuming more than 1 megabyte) grew at 35.7 per cent to 40 million. Subscribers of 3G grew by a staggering 176 per cent to 19.4 million. Data revenue contributed 15 per cent to revenue in the fourth quarter. The firm is conducting 4G trials and will start services by year-end.