Connect with us

Headlines of the Day

Vodafone India posts 26 pct jump in H1 revenue

Vodafone-Essar, the Indian unit of Vodafone Group Plc , saw revenue increase by 26 percent in the six months ended September, but operating profit rose 6.6 percent due to tough competition.

Revenues for India’s third-biggest mobile operator were 1.49 billion pounds ($2.5 billion) in first half of the 2009/10 year, up from 1.18 billion pounds in 2008/09, Vodafone said on Tuesday.

Revenue for the July-Sept quarter rose 22 percent to 704 million pounds (54.49 billion Indian rupees).

Last month, Indian market leader Bharti Airtel posted revenue of 98.46 billion rupees in the quarter and second-ranked Reliance Communications reported 57.03 billion rupees revenue.

Vodafone-Essar’s operating profit in the first six months of 2009/10 rose 6.6 percent to 357 million pounds from 335 million pounds during the same period a year ago.

Voice revenues for six months rose 23 percent to 1.23 billion pounds as it added 14.1 million users.

Vodafone said a fall in the call rates, a cut in termination charges and lower usage per customer partially offset growth in the customer base.

“Following the recent launches of a number of new entrants, competiiton in the Indian market is intense and will remain so for some time,” Vodafone said in a statement.

The company said it planned to invest 0.53 billion pounds in 2009/10, down from 0.59 billion pounds last year.

“Capital expenditure is expected to be similar to last year after adjusting for foreign currency, with slightly lower investments in India and more in Europe to support our revenue growth opportunities,” Vodafone said.

About one-third of Vodafone-Essar’s customers moved to other networks during the six-month period. That is slightly lower than the industry average of 36-42 percent, one analyst said.

The Vodafone-Essar financials were contained in Vodafone’s global results. Reuters

Click to comment

You must be logged in to post a comment Login

Leave a Reply

Copyright © 2024 Communications Today

error: Content is protected !!