Vodafone Idea (IDEA) Q4 14/15 earnings summary

Executive summary

• FY15 consolidated revenue rose 19.8% to ₹320,406 Mn, EBITDA increased 32.4% to ₹112,813 Mn, and PAT grew 62.3% to ₹31,929 Mn.

• Subscriber base reached 157.8 Mn, up 16.2% YoY; revenue market share rose to 17.5%, with 23.5 Mn subscribers added during the year.

• Data usage grew 117.3% to 172.5 Bn MB; voice usage increased 16.3% to 683.4 Bn minutes.

Financial highlights

• Standalone revenue rose 20.2% to ₹317,318 Mn; EBITDA increased 34.8% to ₹101,257 Mn; PAT advanced 66.3% to ₹28,098 Mn.

• Consolidated operating revenue was ₹315,709 Mn, up 19.1%; operating expenses rose 13.9% to ₹207,592 Mn, lowering expenses as a share of revenue to 64.8% from 68.1%.

• Consolidated PBT increased 62.0% to ₹49,325 Mn; cash profit rose 22.4% to ₹86,161 Mn; tax charge was ₹17,396 Mn.

• Standalone cash profit rose 23.5% to ₹77,742 Mn; net profit increased 66.3% to ₹28,098 Mn.

Outlook and guidance

• Phased 4G launch planned from calendar 2016, alongside continued expansion of owned 3G coverage and development of digital services.

• 3G or 4G spectrum coverage reached over 87% of revenue; spectrum profile supports 4G rollout across 10 service areas covering 61% of revenue.

• Profitable growth outlook supported by rising data demand, brand strength, improving cash flows and spectrum availability; actual results remain exposed to regulation, competition and market conditions.