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Price wars and IUC cut take a toll on Vodafone India’s revenue during Oct-Dec 2017

February 02, 2018

Vodafone India has reported a 26.6 per cent decline in revenue from € 1,452 million during the quarter ended December 2016 to € 1,066 million during the quarter ended December 2017. The operator’s service revenues declined by 23.1 per cent during the same period. According to Vodafone, the fall in revenues can be attributed to the intense competition in the sector and a 29.2 per cent decline in interconnection revenues due to the mobile termination rate (MTR) cut in October 2017.

Vodafone India’s prepaid average revenue per user (ARPU) declined by 28 per cent during the quarter. As per the operator, this reflects increased customer adoption of unlimited packages, longer tariff validity periods and regulatory pressure.

The operator has managed to maintain its adjusted EBITDA margin at 20.1 per cent during the quarter.

On the operations side, the operator’s customer base grew by 5.1 million mainly due to porting-in of customers from operators that are exiting the market. As a result, the operator’s total user base stood at 212.5 million on December 31, 2017. Further, the company’s active data customer base grew by 2.2 million in the quarter to 69.9 million, supported by strong growth in mobile broadband subscribers of 6.5 million. The operator also continued to invest in network expansion, adding 19,300 data sites during the quarter.

 
 

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