Vodafone Idea (IDEA) Q4 10/11 earnings summary

Executive summary

• FY11 consolidated revenue rose 24.0% to ₹155.0bn, while EBITDA reached ₹37.9bn and net profit was ₹9.0bn, down 5.8% YoY.

• Subscriber base grew 40.2% to 89.5m; revenue market share advanced to 13.2% from 12.4%, and active VLR subscribers were 93% of reported subscribers.

• Growth continued amid intense price competition, with 3G rollout, MNP net gains and expansion in newer service areas supporting future opportunities.

Financial highlights

• Consolidated FY11 revenue ₹155.0bn, up 24.0% YoY; EBITDA ₹37.9bn vs ₹34.6bn; net profit ₹9.0bn vs ₹9.5bn.

• Consolidated PBT was ₹10.0bn vs ₹10.8bn; EPS ₹2.72 basic and diluted vs ₹3.07 and ₹3.06, respectively.

• Standalone FY11 revenue rose 29.0% to ₹153.9bn; EBITDA was ₹31.3bn and net profit ₹8.45bn, down 19.8% YoY.

• Consolidated operating cash flow was ₹50.7bn; investing outflow ₹82.5bn and financing inflow ₹33.5bn.

Outlook and guidance

• Strategy prioritizes defending leadership in 13 established areas and calibrated expansion across nine newer areas; steady cash generation and a strong balance sheet are positioned to support long-term growth.

• 3G rollout and improving devices, applications and content expected to unlock wireless broadband, mobile banking, commerce, health and education opportunities.

• Management expected sector opportunities to improve when hypercompetition eases and pricing power returns; actual results remain subject to economic, regulatory, tax and market conditions.