Industry Update Back
Telecom: Vodafone India's EBITDA in a downward spiral

  • IUC cut dampens revenue: Vodafone India's wireless revenue declined 13%QoQ (-25% YoY) to INR74.5b -of which ~11% can be attributed to IUC rate cut –in line with Bharti/Idea’s revenue decline of 12/13% QoQ. EBITDA declined 19%QoQ (v/s Bharti/Idea's EBITDA decline of 17/19%) to INR16.3b. However, savings in operating cost provided some support to EBITDA. Margin contracted 180bpQoQ to 20.1% (Bharti/Idea margins at 32.6/18.8%). ARPU declined 13% QoQ (-28% YoY) to INR114 (Bharti/Idea's ARPU at INR123/113).
  • Bucking the trend of the previous quarter, the subscriber base grew 2.5% QoQ to 212.5m, gaining some share from smaller operators. Furthermore, continuous data burst on the back of unlimited price plans led to a sharp 48% QoQ increase in data volumes to 567bMBs (monthly 189b MBs data traffic, i.e., 13% of RJio's  3QFY18 numbers).