Mobile customer base, stable pricing buoy Vodafone’s revenues
An increase in the mobile customer base and a more stable pricing environment towards the end of FY11 has led to a 16.2 per cent increase in Vodafone India’s service revenue.
An increase in the mobile customer base and a more stable pricing environment towards the end of FY11 has led to a 16.2 per cent increase in Vodafone India’s service revenue.
In a company release issued, Vittorio Colao, Group Chief Executive, Vodafone Group Plc, stated, “Our performance in India has been driven by increasing voice penetration and a more stable pricing environment. Our two major businesses, India and Vodacom (South Africa), reported growth of 16.2 per cent and 5.8 per cent, respectively.”
In India, growth was driven by a 39 per cent increase in the average mobile customer base and stable usage per customer trends, partially offset by a fall in the effective rate per minute due to an increase in the penetration of lower priced tariffs into the customer base and strong competition in the market.
February 2011 saw the launch of commercial 3G services following the purchase of 3G spectrum in May 2010 and subsequent network build. By the end of the year 1.5 million customers had activated their 3G access.
The telecom company’s EBITDA grew by 15.1 per cent, driven by the increase in the customer base and economies of scale, which absorbed pricing and cost pressures.
Meanwhile, Vodafone Group’s cash capital expenditure decreased by £328 million primarily due to lower expenditure in India. The Group invested £2,982 million in licences and spectrum, including £1,725 million in India and £1,210 million in Germany.
The Group is party to a number of option agreements, which could result in it being required to pay cash to maintain or increase its equity interests in its operations in India and the US.
Machine-to-machine platforms (M2M), mobile financial services and near-field communications, among other new services, offer potential for incremental growth. During the year the Group made good progress in its M2M business and continued the growth and expansion of its mobile money transfer platform, which now has over 20 million customers and is currently being trialed in India.
