Vodafone Idea (IDEA) Q4 12/13 earnings summary

Executive summary

• FY2012-13 consolidated revenue rose 14.9% YoY to ₹224,577 Mn; EBITDA increased 17.9% to ₹60,046 Mn and PAT rose 39.8% to ₹10,109 Mn.

• Subscriber base reached 121.6 Mn, with 98.9% active subscribers; revenue market share advanced to 15.7% in Q4 FY2012-13 from 15.0% a year earlier.

Financial highlights

• Consolidated service revenue was ₹221,410 Mn; total revenue was ₹224,577 Mn versus ₹195,412 Mn in FY2011-12.

• EBITDA was ₹60,046 Mn, up 17.9% YoY; PBT rose 49.5% to ₹15,773 Mn and PAT increased 39.8% to ₹10,109 Mn.

• Consolidated cash profit rose 23.7% to ₹49,794 Mn; operating cash flow was ₹62,971 Mn and year-end cash and cash equivalents were ₹11,658 Mn.

• Non-voice subscriber revenue grew 25.6% YoY; standalone revenue grew 14.3% to ₹220,869 Mn and standalone PAT increased 41.9% to ₹8,183 Mn.

Outlook and guidance

• Voice and data were identified as sector growth opportunities, with data expected to become a key growth driver; management anticipated further competitive consolidation through network quality and execution.

• Management expected to expand coverage and market share in the seven re-acquired license areas as they progressed toward break-even, while building capacity for data growth.

• Regulatory uncertainty was described as a near-term constraint; management expressed confidence in navigating the environment and strengthening its market position.