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Vodafone India logs 13.3% jump in H1 revenues at Rs 17580 crore

Last Updated: Wednesday, November 14, 2012 - 19:15

New Delhi: Telecom major Vodafone India on Wednesday said its revenue has grown 13.3 percent to Rs 17,580 crore for the six months ended September 30, 2012.

Vodafone India revenues, which includes standalone, its subsidiaries and proportionate consolidation of Indus Towers (42 percent), stood at Rs 15,510 crore in the same period last year.

The company did not disclose the profit numbers for the first half of 2012-13.

"We achieved a revenue growth of 13.3 percent...We have been able to improve our operational profit margin to 28.4 percent as a result of our increasing operating efficiency based on scale and lower customer acquisition cost," Vodafone India Managing Director and CEO Marten Pieters told reporters here.

He added that while revenue growth has been impacted by some of the regulatory measures, lower customer acquisition cost has been a positive for the finances of the industry, which is already battling high operational costs and lower returns.

British telecom giant Vodafone Group reported a dip of 0.4 percent in global organic service revenue as earnings from southern Europe fell 9.8 percent. Africa, Middle East and Asia Pacific (AMAP - including India) grew 5.2 percent, while North Europe grew 1.5 percent.

India service revenue rose by 13.5 percent, driven by a 5.3 percent increase in the customer base, strong growth in incoming and outgoing mobile voice minutes and two percent growth in the effective outgoing rate per minute.

Vodafone India's capex was lower at Rs 1,700 crore in the April-September 2012 period compared to Rs 2,430 crore in the same period last year due to economic slowdown and uncertain regulatory outlook.

The company registered 39 percent growth in operating free cash flow at Rs 3,380 crore as compared to Rs 2,430 crore in the same period last year.

While there has been a drop in minutes (182 billion in Q2 against 188 billion in Q1) due to decline in subscribers and seasonality in Q2, Average Revenue per Minute remained stable at 44 paise driven by prudent pricing in first half.

Though Pieters declined to make specific comments on the ongoing 2G auction, he said driven by the outcome of the auction and licence extension, "there will be a lot of clarity" in the regulatory environment going forward.

"In the last few months we have seen a lot of decisions being made by the government, which is good. But a lot more needs to be done," he added.

Talking about one-time spectrum fee, Pieters said the government needs to create a level playing field between private operators and state-run entities -- BSNL and MTNL.


First Published: Wednesday, November 14, 2012 - 19:15
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