Vodafone Idea (IDEA) Q4 11/12 earnings summary

Executive summary

• FY12 consolidated revenue rose 26% to ₹195,412 Mn and EBITDA increased 34.3% to ₹50,923 Mn; PAT fell 19.6% to ₹7,230 Mn as depreciation, amortisation and finance costs rose.

• Revenue market share reached 14.4% at CY11-end, up from 13.3%; subscriber base grew 25.9% to 112.7 Mn.

• 3G coverage extended to 3,000+ towns and 10,000 villages across 20 service areas; 2.6 Mn subscribers actively used the platform.

Financial highlights

• Consolidated revenue was ₹195,412 Mn versus ₹155,032 Mn in FY11; non-voice subscriber revenue grew 30.9% YoY.

• Consolidated EBITDA was ₹50,923 Mn, up 34.3%; EBITDA margin rose to 26.1% from 24.5%.

• Consolidated PAT was ₹7,230 Mn, down 19.6%; cash profit was ₹40,253 Mn, up 18.1%.

• Standalone revenue rose 25.6% to ₹193,223 Mn; EBITDA increased 37.9% to ₹43,128 Mn, while PAT declined 31.7% to ₹5,765 Mn.

• Consolidated finance charges increased to ₹10,557 Mn from ₹3,966 Mn; depreciation and amortisation rose to ₹29,813 Mn from ₹23,973 Mn.

Outlook and guidance

• Management cited long-term opportunity in voice and data, with a focus on expanding 3G subscribers and developing data-related revenue streams.

• Strong balance sheet and growing cash generation were cited as support for navigating regulatory uncertainty and pursuing wireless broadband opportunities.