Vodafone Idea (IDEA) Q4 07/08 earnings summary

Executive summary

• FY08 consolidated revenue rose 54% to Rs. 67,374.46 million; net profit more than doubled to Rs. 10,423.10 million.

• Subscriber base grew 71% to 24.00 million, market share increased to 9.4%, and network coverage expanded to 13,308 cities and towns.

• Expansion into new service areas, large network investment and the Indus Towers joint venture expanded the operating footprint and infrastructure capacity.

Financial highlights

• Consolidated service revenue was Rs. 67,199.83 million; total revenue was Rs. 67,374.46 million versus Rs. 43,873.29 million in FY07.

• EBITDA was Rs. 22,692.61 million versus Rs. 14,861.85 million; PBT rose to Rs. 11,148.30 million from Rs. 5,092.51 million.

• Net profit was Rs. 10,423.10 million versus Rs. 5,022.18 million; basic and diluted EPS were Rs. 3.96 each versus Rs. 2.19 and Rs. 2.15.

• Operating cash flow reached Rs. 25,224.10 million versus Rs. 16,057.31 million; cash and equivalents ended FY08 at Rs. 4,974.51 million.

Outlook and guidance

• Strategy targets stronger operations in existing service areas, expansion into new areas, and continued investment in brand identity and service quality.

• Management viewed the mobile sector as positioned for continued high growth, with low wireless penetration and falling handset costs and tariffs supporting demand.

• New licenses and allotted spectrum were expected to support launches in additional circles; management said licensed areas would become operational before FY09-end.