The Capital expenditure (Capex) of Vodafone India decreased to Rs 8,010 crore from Rs 8,598 crore.
The growth of Vodafone service revenue was 2.3 percent in Q3 and 5.3 percent in Q4.
Growth in mobile customer base and demand for 3G data did not assist Vodafone to achieve strong growth in service revenue in fiscal 2016 ended on March 31.
Revenue of Vodafone in India was affected adversely during the fiscal year by significant regulatory impacts — including MTR cuts, roaming price caps and increase in service tax — and price competition among mobile operators.
Excluding these impacts, service revenue growth of Vodafone India was 10 percent.
Vodafone M-Pesa business has 1.3 million active customers and approximately 120,000 agents.
EBITDA of Vodafone India grew 4.1 percent, with a 0.2 percentage point dip in EBITDA margin as the benefits of service revenue growth were offset by the ongoing increase in operating costs related to Project Spring, higher acquisition costs and the translation effects of non-rupee operating costs.
Dropped call rates have fallen from 1.3 percent to 0.9 percent.
Vodafone India’s enterprise business grew 21 percent. Vodafone Business Services contributed to 15 percent of Service revenues.
Vodafone data business
Vodafone India added 14.1 million mobile customers during the year to 197.9 million.
Data usage of Vodafone India rose 64 percent. Active data customer base increased by 3.8 million to 67.5 million.
The 3G customer base of Vodafone India grew 41.4 percent to 27.4 million. Smartphone penetration in its four biggest urban areas is 52.8 percent.
In Q4, browsing revenue represented 19.2 percent of service revenue, up from 14.9 percent in the same quarter last year.
Growth in total minutes of use continued. Vodafone India noted a decline in average revenue per minute as a result of ongoing competition on voice business.
Data revenues contributed to 19.2 percent. Data revenue reached Rs 8,263 crore (+45 percent) in FY 2016.
Vodafone has 67.5 million data users. The number of 3G and 4G data users is 27.8 million.
3G and 4G revenues grew 79 percent, contributing to 70 percent to data revenue and volume.
Data usage per subscribers for users >1MB was at 679MB and 3G and 4G usage / sub at 800 MB/month.
Data ARPU of Vodafone India for users > 1MB at INR 163 in Q4 FY16 v INR 141 in Q4 FY15.
Vodafone India investment
Vodafone India added over 37,700 new 3G sites, taking the total to 55,500 and population coverage to 95 percent of target urban areas.
The telecom operator has made investment in 35,000 cell sites during the last 12 months. At present, Vodafone India has 137,332 cell sites. The number of 3G+4G sites is 62,673.
The mobile operator launched 4G in five key circles and plan to expand to cover over 60 percent of its data revenues in the coming year, ahead of the upcoming spectrum auction.
Given the high cost of spectrum, Vodafone India will be taking a disciplined approach to expand 4G services. The company in a statement said that Indian telecom market conditions remain competitive and may be impacted by the forthcoming spectrum auctions and a new entrant (Reliance Jio).