Vodafone-Essar revenue growth slows
05-02-2010
India still accounts for 75% of the company's Asia-Pac and MidEast revenue growth
The Indian unit of Vodafone Group has posted lower revenue growth in the December quarter, compared with the September quarter, primarily because of the tariff war in the country
The company, India's second-largest GSM operator, has reported a 13.7% growth in revenues at ?767 million (Rs 5,623 crore) in the October-December period. In the previous quarter, the growth rate was 18%.
"The impact of the 51% increase in average mobile customers was largely offset by lower effective prices" Vodafone said in a presentation
It pointed out that per-second billing and the phenomenon of multiple SIM cards was exerting pressure on margins. Total minutes on Vodafone Essar's networks improved 35%, but prices were down by 21%, as the company matched competition by offering calls at as low as one-paisa per second.
Vodafone Essar has benefited from the revenue stream generated by Indus Towers - the network-sharing JV with Bharti Airtel and Idea Cellular. "Indus Towers continued to show improved performance with tenancy rates up to an average of 1.7 operators per site" it said.
Despite the pricing pressure, India has contributed around 75% of Asia Pacific and the Middle East?s organic service revenue growth for Vodafone.
The telecom giant has restricted its capex for India, the geography it has been betting on heavily since the acquisition of Hutchison's operations in 2007
The Indian unit of Vodafone Group has posted lower revenue growth in the December quarter, compared with the September quarter, primarily because of the tariff war in the country
The company, India's second-largest GSM operator, has reported a 13.7% growth in revenues at ?767 million (Rs 5,623 crore) in the October-December period. In the previous quarter, the growth rate was 18%.
"The impact of the 51% increase in average mobile customers was largely offset by lower effective prices" Vodafone said in a presentation
It pointed out that per-second billing and the phenomenon of multiple SIM cards was exerting pressure on margins. Total minutes on Vodafone Essar's networks improved 35%, but prices were down by 21%, as the company matched competition by offering calls at as low as one-paisa per second.
Vodafone Essar has benefited from the revenue stream generated by Indus Towers - the network-sharing JV with Bharti Airtel and Idea Cellular. "Indus Towers continued to show improved performance with tenancy rates up to an average of 1.7 operators per site" it said.
Despite the pricing pressure, India has contributed around 75% of Asia Pacific and the Middle East?s organic service revenue growth for Vodafone.
The telecom giant has restricted its capex for India, the geography it has been betting on heavily since the acquisition of Hutchison's operations in 2007
