As Jio cuts deep into the incumbent telcos’ profit zone, the number two operator Vodafone India today reported a fall of 3% in its service revenue and 10.14% a dip in operating profit on a standalone basis joining its two industry counterparts –Airtel and Idea who met similar fate but in different degrees.
Vodafone India’s service revenue was Rs 42,956 crores in FY17 compared to Rs 44,490 crore for the previous fiscal. Earnings before Interest, Depreciation, taxation and Amortisation margin of 27.3% for fiscal 2017 which was a contraction of 3 percentage points y-on-y and the actual EBIDTA number was lower at Rs 11, 784 against Rs 13,115 crore as on March 2016.
Vodafone India revenue is now excluded from its global parent's figures as the company has announced a merger with Idea Cellular, Vodafone plc said.
Large customer additions and strong growth in data revenues helped Vodafone India capture market share and withstand some pressure of intense competition created by Jio’s free voice and data offerings. Its data usage is growing at a strong rate of 30% y-on-y and the enterprise business growing faster than the industry rate which now makes up for the 17% of the revenue. It 4G service areas in 2400 towns are now contributing to 95% of the data revenue
The company’s operating free cash flow was at Rs 2,992 crore in fiscal 2017 and the sustained and prioritized capital investments of Rs 8,311 crore in fiscal 2017.
Vodafone which is the largest global network with 1.41 lakh total sites, has rolled out 11 towers every hour for the year, it said.
Jio’s arch rival Airtel had posted an over 72% fall in its Q4 net profit while Idea with whom Vodafone is seeking a merger had posted a Rs 430 crore standalone loss in the Q4 of the last fiscal which pulled down the overll yearly profit and loss figures furthers respectively.
Innovative offerings of SupterNet 4G and other data plans helped data browsing revenue to go up to Rs 8467 crore in the fiscal 2017, a rise of by 5% y-o-y and its customers base too grew 5.6% Y-o-Y to 209 million customers serviced through a network of 1.41 lakh total sites
Its broadband sites stood at (3G+4G) of 1.06 lakh as on March 31, 2017. Vodafone said it now has substantial rural presence with a customer base of 114 million in March 17.
The company has a growing Revenue Market Share (RMS) at 22.7% and a Service Revenue ARPU at Rs 158 in Q4 FY17. Vodafone Business Services now contributing to over 17% of Service revenues ( FY17), said the company.
A net of tax impairment of India of 3.7 billion pound was also major cause of the loss of 6.1 billion pound of the Vodafone plc.