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Vodafone Posts 13.0% Service Revenue Growth In India

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UK telecom operator, Vodafone said that its service revenue in India grew 13.0%*, as the growing customer base used greater quantities of voice and data traffic, supported by effective voice price increases.

Company’s Africa, Middle East and Asia Pacific (AMAP) region service revenue continued to perform strongly, growing 6.1%*, driven by our major emerging markets (India +13.0%*, Vodacom +4.1%*, Turkey +7.9%*), Vodafone said in its financial reports on Monday.

The Group EBITDA2 margin fell 1.3* percentage points on an organic  basis, as the impact of steep revenue declines in Europe offset improving margins in AMAP, notably in India and Australia. Group EBITDA2 fell 7.4%* to £12.8 billion.

M-Pesa footprint continues to grow, with launches in the year in India, Egypt, Mozambique, Lesotho and its first European market, Romania.

According to the company financial report ended 31st March, 2014, group revenue of Vodafone down 1.9% to £43.6 billion, while full year organic service revenue decline 4.3%*.

The year-on-year decline reflects the relative strength of sterling against the South African rand and Indian rupee over the course of the year, partly offset by movements in the Euro, as well as tough trading conditions.

The company also said that capital expenditure increased 13.3% to £7.1 billion, with the growth driven by the inclusion of CWW for 12 months, the inclusion of KDG from October 2013, the commencement of its’ fibre roll-out in Spain, and initial Project Spring investments in Germany and India. In addition, Vodafone had acquired and renewed spectrum for £2.2 billion in India, Romania, New Zealand and the Czech Republic, with a cash cost of £0.9 billion during the year.

Highlights

  • Group revenue down 1.9% to £43.6 billion; full year organic service revenue decline 4.3%*
  • Q4 organic service revenue declined 3.8%*2, or 4.0% including Italy at 100% from 21 February 2014
  • EBITDA3 down 7.4%* at £12.8 billion; organic EBITDA margin down 1.3 percentage points
  • Adjusted operating profit3 £7.9 billion, including £3.2bn for Verizon Wireless to 2 September 2013
  • Pro forma full year 13/14 guidance met: adjusted operating profit £4.94 billion, free cash flow £4.84 billion
  • Completion of Verizon Wireless disposal, US$85 billion returned to shareholders; £45.0 billion pre-tax gain
  • £19.3 billion deferred tax assets recognised in relation to the Group’s historical tax losses, £17.7 billion of this announced H1
  • Impairments totalling £6.6 billion in Germany, Spain, Portugal, Czech Republic and Romania
  • Planned organic investments of around £19 billion over the next two years, including Project Spring
  • Final dividend per share of 7.47 pence, giving total dividends per share of 11.0 pence, up 8%

 

Financial highlights   Change year-on-year
  Year ended 31 March 2014 Reported Organic
  £m % %
 Management basis1      
 Group revenue 46,616 (1.9) (3.5)
 Group service revenue 39,529 (2.4) (4.3)
 Europe 25,977 (2.0) (9.1)
 Africa, Middle East and Asia Pacific (AMAP) 13,087 (4.7) +6.1
 EBITDA3 12,831 (5.4) (7.4)
 Adjusted operating profit3 7,874 (37.4) (9.4)
 Free cash flow 4,405 (21.5)  
 Statutory basis      
 Revenue 38,346 +0.8 (2.2)
 Profit/(loss) for the financial year from continuing operations 11,312 n/m  
Profit for the financial year 59,420 n/m  
Basic earnings per share 223.84p n/m  
Total dividends per share 11.00p +8  
Adjusted earnings per share3 17.54p (12.8)  

 

  • Significant progress on unified communications strategy: acquisition of Kabel Deutschland (‘KDG’), announced acquisition of Ono, ongoing fibre build in Spain and Portugal, with Italy to commence this year
  • Project Spring underway, initially with increased network investment in India and Germany
  • 4.7 million 4G customers in 14 markets; early 4G data usage more than double that of 3G data usage
  • European smartphone penetration 45%, up 7 percentage points year-on-year
  • Mobile in-bundle revenue grew 7.8%* in the year and Q4, and now represents 51% of Q4 Group mobile service revenue, and 61% in Europe
  • Vodafone Red now in 20 markets; 12 million customers as at 31 March 2014
  • M-Pesa now in 10 markets, 17 million customers

(All amounts in this document marked with an “*” represent organic growth which presents performance on a comparable basis, both in terms of merger and acquisition activity and movements in foreign exchange rates)

Wahengbam Rorrkychand

View all contributions by Wahengbam Rorrkychand

Website: http://www.blog.tonsetelecom.com

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