VODAFONE INDIA FULL YEAR FY17 RESULTS

Transcription

1 News Release Mumbai, May 16, 2017 VODAFONE INDIA FULL YEAR FY17 RESULTS RMS gain of 0.7ppt in Q3FY17 vs Q4FY16 Stable service revenue, healthy EBITDA margin % and continued capital investments Data usage growing by almost 30% YoY Enterprise business growing faster than industry rate Rolled out 11 towers every hour for the year*; Amongst the largest global networks with over 141,000 total sites Expanded Vodafone SuperNet 4G footprint across all circles where Vodafone won 4G spectrum contributing more than 95% of Vodafone Data Revenue; now available across 2400 towns Vodafone Group Plc announced the merger of Vodafone India and Idea on March 20, 2017, creating the largest telecoms operator in India Key FY17 KPI s SERVICE REVENUE AT INR 42,956 crores DATA (BROWSING) REVENUE AT INR 8,467 crores, UP BY 5% EBITDA MARGIN AT 27.3% 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, 2017 Key Financial Highlights: Vodafone India Standalone figures Steady Financial Performance Vodafone maintained service revenue at INR 42,956 crores in FY17 despite aggressive new operator launch Strong customer additions and growth in data revenues helped capture market share EBITDA at INR 11,784 crores in FY17; a healthy EBITDA margin of 27.3% Operating Free Cash Flow (OFCF) at INR 2,992 crores in FY17; Sustained and prioritized capital investments of INR 8,311 crores in FY17; (Capex intensity of 19.3%) driven by significant investments in new broadband site roll-out to deliver superior customer experience and growth in key focus areas Good Momentum in Operations A base of ~209 million customers (growth of 5.6% YoY) serviced through a network of ~141,000 total sites; Broadband Sites 3G+4G - ~106,300 Substantial rural presence with a customer base of 114 million in Mar17 Growing Revenue Market Share (RMS) at 22.7% (Q3FY17); gain of 0.7ppt Q3FY17 Vs Q4FY16 Service Revenue ARPU at INR 158 in Q4 FY17; Robust performance by strategic business areas with Data usage growing by c.30% YoY; Vodafone Business Services now contributing to over 17% of Service revenues ( FY17) Vodafone Business Services (VBS) a Total Telecommunications Solution Provider; Powering Digital India VBS growing faster than the industry, led by strong growth in fixed line and in SME business Making strong foray into Internet of Things (IoT) solutions and investing in Cloud Infrastructure Actively engaged with Public Sector Enterprises and State Governments contributing to the vision of Digital India and setting up of smart cities

2 *Considering 25 working days a month and 14 hours a day Stable Performance in Data Driving Growth Data (Browsing) revenue at INR 8,467 crores in FY17, 5% growth YoY 66.9 million data users, of which 43.5million use >1MB Added 10 million broadband users during the year to close at 37.7 million (Q4FY17) 3G/4G subscribers Data usage exploding and usage/sub (for users >1MB) at 970 MB Data ARPU (for users > 1MB) at INR 140 in Q4 FY17 vs INR 160 in Q4 FY16 due to free data offer by new entrant Data usage growth led by higher smartphone penetration at 35.5% of total customer base(mar 17 exit) Driving data usage with innovative value propositions (such as SuperHour, SuperNet, Vodafone Play) and better customer experience in addition to strategic partnerships with handset manufacturers and application providers M-Pesa, a new currency for India - Driving Financial Inclusion Pan-India footprint, largest business correspondent in the country with over 137,000 authorized agents (equivalent to all bank branches in India, March 17 exit) A base of over 11.9 million registered customers Vodafone Play - your one window to the world of entertainment Strengthened the content portfolio under Vodafone Play Over 14,000 film titles, 150+ live TV channels, huge repertoire of kids entertainment and original digital content and a large catalogue of Music Crossed 5 million app downloads Vodafone has exclusive partnership with Amazon Prime and Netflix to offer great value on content Spectrum Auction Highlights Biggest winner in the October 2016 spectrum auctions - acquired a total of Mhz of spectrum Acquired high-capacity, multi-band 4G capability across , 2100 and 2500 MHz. In a very strong position competitively with this spectrum purchase: o 92% of total revenues & 95% of data revenues are covered with 4G spectrum (Q4FY17) o In the key markets, 75% of data revenues covered with 3 or more LTE carriers Other Highlights Launched Vodafone SuperNet TM, our best network ever across the country to offer superior voice and data experience 4G services on the superior 1800 MHz band available across over 2,400 towns Launched Vodafone SuperHour a product that offers truly unlimited 3G/4G data Launched Vodafone Sakhi an innovative product to empower rural women that enables a Private Recharge, without mobile number sharing. It comes with an Emergency calling feature even with Zero balance. Introduced truly unlimited packs for international travellers to USA, UAE and Singapore on India s best International Roaming plan for worry free roaming Rolled out attractive data offers - 4GB data free on upgrading to Vodafone SuperNet TM 4G First to roll-out e-kyc led paperless process pan India customers walk out connected in minutes Awards and Recognitions Won Best Mobile Customer Service and Industrial IoT in ET Telecom Awards 2017

3 VBS won Innovative Marketing Campaign (for Ready Business) and Digital India (for supporting the Govt. of Rajasthan s RajNet project for Digital Citizen Services) award at Aegis Graham Bell Awards 2017 Won the Best Overall customer Experience award in Telecom category at Quest CX Awards 2016 jointly organised by OneDirect and Twitter (April 2016) Vodafone M-Pesa won the Best Payment Wallet Initiative at the Emerging Payments Awards 2016 in London for it Mobile Wallet (Oct 2016) SuperNet #BeSuper campaign won the best campaign for the year in the Telecom/IT/Ecomm/Apps section at the IndIAA Awards organized by the Indian Chapter of the International Advertising Association. (Oct 2016) Sunil Sood, Managing Director and CEO, Vodafone India commented: Amidst an unprecedented and intensely competitive environment, we delivered a stable performance while recording a strong gain of 0.7ppt in RMS YTD Dec 16; increasing our customer base past the 200 million subscriber mark; and expanding our Vodafone SuperNet 4G presence to 2,400 towns by utilizing the spectrum bought during the year, We continue to delight and reward customers with innovative and meaningful value propositions including SuperHour, exciting 4G offers, richer content under Vodafone Play and added benefits for Vodafone RED customers. We remain committed to playing our role in enabling Digital India by fulfilling the evolving needs of increasing volumes, speed and innovative solutions for both retail and enterprise customers Key Financial Summary INR crores FY17 FY16 YoY% Service revenue 42,956 43, % o/w Data browsing revenue 8,467 8, % Total revenue 43,095 43, % EBITDA 11,784 13, % EBITDA margin (%) 27.3% 30.2% Capital expenditure 8,311 8, % Capital Intensity 19.3% 18.5% OFCF 2,992 5, % * Net Debt for Vodafone India standalone for FY17 is c. INR 602 billion Customers FY17 FY16 YoY% Mobile customers (million) % Data users (million) (>1MB usage) % Data users (million) (>0Kb usage) % 3G + 4G users (million) % Churn% Contract Prepaid Total Notes to Editors: 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

4 From FY17, Vodafone Group changed the reporting of certain dealer commissions in India. The impact on revenues for the current and prior half year and quarters was not material and this had no effect on earnings or cash flows. Past years have been restated 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 M-Pesa, Vodafone RED are the trademarks of Vodafone Group

5 About Vodafone India: Vodafone India is a 100% fully owned subsidiary of the Vodafone Group Plc. with operations across the country serving ~209 million customers (over 114 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 2017, Vodafone had 516 million mobile customers and 18 million fixed broadband customers. For more information, please visit: Follow us on IN_News and visit Media Contact Information Vodafone India indiacorpcomm@vodafone.com