Videocon Telecom, the subsidiary of Indian conglomerate Videocon Group, posted an impressive 41% growth in its Net Revenue for GSM business in Q2 FY 2015-16 over same quarter last financial year. The telco reported a consolidated Top line telecom revenue of 621 Cr in Q2 2015-16 and is targeting consolidated Top line Revenue of 3000 Cr in year 2015-16.
Continuing with its aggression on Customer acquisition, Videocon Telecom achieved 29% growth in its Subscriber base over same quarter last year. While, the September 15 Industry Net subscriber addition no’s are still awaited, within July & August 2015, against the industry net subscriber addition of (-) 129K, Videocon Telecom reported net subscriber addition of 313K in its 4 fully operational circles i.e. Punjab, Haryana, MPCG and Gujarat. The telco plans to acquire 10Mn new subscribers this financial year in these circles.
Videocon Telecom reported a 23% improvement in its NRPM (Net rate per min) and 12% growth in its minutes of usage in Q2 this year over same quarter previous year. Owing to its strategy to upgrade its Network to 2.75 G EDGE, the telco has been substantially growing its data revenues. At 137%, Videocon Telecom has more than doubled its data consumption, and almost doubled its data revenues in Q2 this year over same quarter last year, surpassing the industry growth. Data continues to contribute to approx 12% of the Telco’s Gross Revenue and the company aims at taking up the data contribution to GR at 15% by end of current Financial Year.
Mr. Arvind Bali, Director and CEO, Videocon Telecom said, “We are happy with our Q2 results. We have achieved 95% of our targeted Gross Revenue in Quarter 2, and had there been no change in the increase in Service Tax incidence and Roaming rate implication, our achievement would have been 99%. Our GSM Net Revenue is up by 41% over same quarter last year, and operating losses have gone down by 42%. All KPIs, be it gross level or unit level, look promising.
Being a new entrant, our strategy was to attain incremental Customer and Revenue market leadership in our operational circles, and we have been able to achieve the same. While the September’15 Industry Net Subscriber addition no’s are still awaited, in July and August 15, the industry net adds in our 4 fully operational circles was (-) 129, while we added 313K net subscribers. We aim to maintain and accelerate this growth rate further. We are targeting over 10 Mn new subscriber acquisitions, Top line Revenue target 3000 Cr and EBITDA positive in MP and Haryana telecom circles in financial year 2015-16”, Mr. Bali added.