Vodafone India Q1 2017 Service Revenue Plunges by 8.7%

Vodafone India’s service revenue declined by 8.7% year-on-year at 1,385 million euros in the quarter ended 30 June 2017 from 1,510 million euros for the same quarter last year. The company said that its organic service revenue declined 13.9% as a result of continued price competition from the new entrant and incumbents.

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Despite a year-on-year decline, sequential quarterly trends are stabilising as SIM consolidation is beginning to improve ARPU in the low-value segment, helping offset pricing pressure in the mid and high-value segments of the base, the telco said.

During the quarter, Vodafone India grew its mobile customer base by 2.9 million, while continuing to retain high-value customers. “We ended the quarter with a closing customer base of 211.9 million. Our focused investment strategy delivered a further improvement in our revenue market share in our leadership circles, based on regulatory disclosures for the prior quarter,” the telco said.

During the quarter, Vodafone India added 3.4 million 3G/4G customers during the quarter and average data usage has more than doubled year-on-year to 1.1GB per month, as an intensely competitive environment led to a very substantial increase in data allowances.

Vodafone India’s data browsing revenue declined 20.4% reflecting further ARPU dilution from lower unitary prices, which declined 67% year-on-year. “This did, however, stimulate a 78% year-on-year growth in monthly data usage per customer to 1.1GB (Q4: 0.6GB),” Vodafone said.

Vittorio Colao, Group Chief Executive, commented: “We have made a good start to the year in Europe, where our commercial momentum remains robust, and growh accelerated across AMAP. Although competition in India remains intense, service revenues stabilised compared with the prior quarter. Our substantial investments in network leadership, an excellent customer experience and even greater more-for-more’ propositions for customers are enabling us to monetise strong demand for mobile data.”