Vodafone India is a USD 7bn company by revenues; largest FDI investor, second largest MNC in India
Strong underlying s ervice r evenue growth, healthy EBITDA margin% and s ignificant increase in c ash f lows
Data continues to drive growth, usage growing by 63 % YoY
Enterprise business growing at ~21% YoY
Rolled out r ecord number of sites (~35,000) in company’s history in FY16; Launched Vodafone SuperNet ™ – seamless, holistic network experience for customers o Amongst the largest global networks with 13 7 ,000+ total sites
Launched Vodafone SuperNet ™ 4G on superior 1800Mhz in 5 circles ; to cover 1000 towns this year with expansion to 4 more circles viz. Haryana, Gujarat, UPE and Rest of Bengal
Key FY16 KPI’s
SERVICE REVENUE (EXCL. REGULATORY IMPACT) AT INR 46,435 crores, UP BY 10% DATA (BROWSING) REVENUE AT INR 8,263 crores, UP BY 45% HEALTHY EBITDA MARGIN AT 29.5%
Sunil Sood, MD & CEO, Vodafone India and Thomas Reisten, CFO, Vodafone India
Sunil Sood, MD & CEO, Vodafone India
Vodafone India, one of the leading total telecommunication service providers in the country announced its Full Year financial results (IFRS) for the year ended March 31, 2016
Key Financial Highlights: Vodafone India Standalone figures
Strong Financial Performance Consistent and strong underlying revenue growth; service revenue ( adjusted for regulatory impact) of INR 46,435 crores in FY16, a growth of 10% Revenue performance driven by customer additions, stable ARPU and growth in data revenues EBITDA at INR 13,115 crores in FY16; a healthy EBITDA margin of 29.5% Strong Operating Free Cash Flow (OFCF) at INR 5,354 crores in FY16 vs. INR 3,221 crores in FY15 Sustained and prioritized capital investments of INR 8,010 crores in FY16; (18% of revenues) driven by continued top line growth, maintenance of margin and investment in key focus areas
Good Momentum in Operations A base of ~198 million customers
(growth of 7. 7 % YoY) serviced through a network of 137,332 total sites, of
which 62,673 are 3G+4G sites Substantial rural presence with a customer base of 106 million in FY16 Growing Revenue Market Share (RMS) at 22.3% ( YTD Dec ‘15 ) ; gain of 0.1% YoY Service Revenue ARPM at 51.4 paise and Voice ARPM at 35.3 paise (both Q 4 FY1 6 ) ( adjusted for regulatory impact) Stable Service Revenue ARPU at INR 205 ( adjusted for regulatory impact ) in Q4 FY16; supported by good quality of subscribers with active subscriber base (VLR) at 96.5% ( Mar ‘1 6 exit) Robust performance by strategic business areas with Data (Browsing) revenues contributing to 19.2% and Vodafone Business Services now contributing to 15% of Service revenues (both Q 4 FY1 6 )
Vodafone Business Services (VBS) –a Total Telecommunications Solution Provider; Powering Digital India VBS growing at 21% YoY, led by strong growth in fixed line and in SME business Rich experience and expertise in Machine-to-Machine solutions and Cloud Infrastructure Actively engaged with Public Sector Enterprises and State Governments contributing to the vision of Skill India, Digital India and setting up of smart cities
Good Performance in Data Driving Growth Data (Browsing) revenue at INR 8,263 crores in FY16, 45% growth YoY 67.5 million total data users*, of which 44.8million use >1MB and 27.8 million are 3G+4G data users 3G+4G revenues grew by 79% YoY, contributing to 70% to data (browsing) revenue and volume (Q4FY16) Data usage/sub (for users >1MB) at 679MB and 3G +4G usage/sub at 800 MB/month (both Q 4 FY1 6 ) Data ARPU (for users > 1MB) at INR 163 in Q4 FY16 v INR 141 in Q4 FY15 Data usage and revenue growth led by higher smartphone penetration at 32% of total customer base ( Mar ‘16 exit) Continued to drive data usage through strategic partnerships with handset manufacturers and application providers to provide innovative value propositions and better customer experience
M-Pesa - Driving financial Inclusion and e-commerce Pan-India footprint, largest business correspondent in the country with over 120,000 authorized agents ( equivalent o f all bank branches in India) , of which 60% are in rural areas ( Mar ‘16 exit) A base of over 5.4 million registered accounts/customers, of which 1.3mn are active customers New M-Pesa App rated 4.3 on Android Play store - acting as a key business differentiator, to enable convenient payment of bills & recharging on the move Engaged with Government bodies and enterprises enabling financial inclusion and e-commerce Increasing engagements for disbursements of pension, salary and subsidy. RBI’s in-principle Payment Bank license will enable Vodafone M-Pesa to offer a more comprehensive portfolio of banking and financial products and services, accelerating India’s journey into a cashless economy
Other Highlights Launched new MyVodafone App with intuitive navigation and personalized features – ~7.5 mn downloads and over 4.5mn Unique Users in just 4 months since launch Institutionalized cross-functional Network War Rooms across circles to improve overall network experience and address the issue of call drops Vodafone SuperNetTM 4G services to be present across 1000 towns this year with expansion in 4 additional circles of Haryana, Gujarat, UP East and Rest of Bengal Supported the education of 120,000 girls in Rajasthan in line with our commitment to the ‘Beti Bachao, Beti Padhao’ Abhiyaan Set up 20 Digital Literary Centres across 9 States of India and directly impacted 8500+ citizens, comprising mostly of women and young adults
Awards and Recognitions Ranked No 1 in Telecom at Business Today Best Companies to work fo r Awards Vodafone m-pesaTM awarded the ‘Best Mobile Payment Solution’ at the GSMA GLOMO awards at MWC, Barcelona VBS recognized as chosen leader for Telecom Carrier (Leased Lines & Mobile Access) at CI O Choice 2016 Awards MyVodafone App featuring Zumis awarded the best TVC for two consecutive months by Mint – Top of Mind Ad Survey
Sunil Sood, Managing Director and CEO, Vodafone India commented: “We continue to deliver healthy double digit underlying revenue growth of 1 0 % and a healthy EBITDA margin. There is a strong uptake in data and our usage has gone up 63% YoY. Last year, we also embarked on an ambitious initiative to invest, modernize and expand our network to launch Vodafone SuperNet TM – providing a seamless voice and data experi ence for our customers. Shortly, our 4G services will be available in 1000 towns across 9 circles in India. We r e m ain c o m mit t e d t o f u lfil l t h e e v o l vin g n e e d s o f o u r c u s t o m e r s a n d l e v e r a g e o u r g l o b a l e x p e rie n c e p l u s ric h understanding of India to play a mea ningful role in enabling Digital India.”
Vodafone India financials represent Vodafone India standalone only. The Financial results for Vodafone India has been derived from the consolidated financial results of Vodafone Group Plc. and this may differ from Vodafone India’s financial statements prepared in Indian GAAP, Ind (AS) or IFRS Underlying Service Revenue growth % is adjusted for regulatory impacts Data KPIs’ are restated for >1MB data users i.e. with > 1MB data usage on GPRS / 3G / 4G network in the last month Data revenue refers to pure browsing revenue now includes international outroaming data revenue Disclosure of Voice ARPM from H1FY15 (Mobile Voice revenue/Total Mobile Minutes) Net Debt is inclusive of intercompany loans from shareholder Vodafone, the Vodafone logo, M-PESA, Power to You, Vodafone Red, Vodacom and Vodafone SuperNet are the trademarks of Vodafone Group
About Vodafone India:
Vodafone India is a 100% fully owned subsidiary of the Vodafone Group Plc. with operations across the country serving ~198 million customers (over 107 million in rural areas). Commencing operations in 2007, Vodafone is today India’s largest foreign direct investor, with a robust, award winning business and committed for the long term. Vodafone Business Services serves the needs of enterprises and government by providing total telecommunications (Voice and Data) solutions across mobility and wireline platforms. Our mobile wallet, M-Pesa is a unique and innovative money transfer service from Vodafone that fosters financial inclusion. Committed to optimizing the near ubiquitous reach of mobile telephony to address national developmental priorities, the Vodafone Foundation partners is actively engaged in community development initiatives especially in the domains of m-Women, m-Agriculture, m-Education and Disaster Relief. Building on its global experience and expertise, an outreach across India and offering a comprehensive portfolio of technologies- 2G, 3G & 4G, Vodafone is uniquely positioned to actualize the vision of Digital India Globally, Vodafone is one of the world’s largest telecommunications companies and provides a range of services including voice, messaging, data and fixed communications. Vodafone has mobile operations in 26 countries, partners with mobile networks in 57 more, and has fixed broadband operations in 17 markets. As of 31st March 2016, Vodafone had 462.3 million mobile customers and 13.4 million fixed broadband customers. For more information, please visit: www.vodafone.com. Follow us on twitter @Vodafone IN_News and visit www.vodafone.in ------------------------------------------------------------