Vodafone India continued to show strong revenue growth, significant margin improvement and robust cash flows, with exponential growth in data in H1 FY14. India becomes the third largest contributor to group service revenues.
Vodafone India reported a 13.5 per cent increase in revenues in H1 FY14 at Rs 184,809 million, as against Rs 162,826 million in H1 FY13. Data (browsing) revenues jumped 76.5 per cent to Rs 15,419 million. Revenue performance was driven by price hardening, strong growth in voice minutes and data revenues; partially offset by the effect of seasonality and regulatory changes.
EBITDA for H1 FY14 stood at Rs 65,191 million, as against Rs 49,930 million in H1 FY13. EBITDA margin at 31.8 per cent showed a significant margin improvement of 3.4 ppt y-o-y (H1 FY14). Margin improvement and healthy operating free cash flow were driven by scale benefits, operating efficiencies and lower acquisition costs.
Commenting on the company’s performance, Marten Pieters, Managing Director & CEO, Vodafone India said, “We continue to show a healthy revenue growth driven by price hardening, an exponential growth in data and a solid subscriber base. Our focus on profitable growth has led to a strong margin improvement and to a strong operating free cash flow. We will continue to invest in our future growth areas of democratizing data and driving financial inclusion through M- Pesa.”