Uninor reported a 19% year-on-year increase in revenue for first quarter of FY2015. In the quarter ending March 2015, the 100% subsidiary of Norway-based Telenor Group, improved its EBITDA by 40% compare to the same period last year.
Uninor has also seen rapid adoption of Internet services by its customers with nearly 26% of its customers accessing Internet on their mobile phones. Uninor launched Sabse Sasta Internet services in April 2014 and brought a paradigm shift in the market by moving to a service pricing instead of volume based products.
“Uninor had a strong first quarter with 19% growth in revenues and the subscription base being 26% higher than the same quarter last year. We have maintained our growth trajectory in voice and Internet services. The low cost operating model and excellence in managing network capacities allows Uninor customers to use much higher volumes of voice and internet traffic at price points substantially lower than market. In the Indian context ability to provide Sabse Sasta voice and Internet services is a position to build scale and move towards profitable growth. Network expansion last year is also yielding traction amongst customers for voice and internet service,” said Vivek Sood, CEO, Telewings Communications Services (Uninor).
Uninor is number four in customer market share with over 11% of subscribers in the six operational circles at the end of February 2015. Since March 2014, the company has added over 10 million new subscriptions in its six operational circles. Uninor has over 45.5 million subscribers. The sustained business growth is a result of strong adoption of its Sabse Sasta voice and Internet services.
Change in interconnect usage charges (IUC) rates effective March 1, 2015 had a positive effect in margins albeit at lower revenue of around 2%.
Uninor has also increased its retail and distribution footprint to go deeper and wider in its operational circles. The company now has over 365,000 point of sales and around 1,600 branded retail outlets with another 500 being added in the next nine months of this year.
The company is preparing to launch Assam as its seventh circle later this year. The company acquired spectrum for Assam in 2014 auction along with additional spectrum in four of its existing circles.