The Hindu Business Line : Vodafone’s India revenue up by 20%

New Delhi, Nov. 10 Vodafone’s India revenues have increased by 20.5 per cent during the half year ended September 2009 to £1,485 million from £1,178 million in the first half of last year. However, EBITDA declined 4.4 percentage points owing to declining tariffs and increasing presence in rural areas.

“Service revenue grew by 20.5 per cent at constant exchange rates including a 6.4 percentage point benefit from Indus Towers. Growth was driven by a 54.8 per cent increase in the average mobile customer base; this was partially offset by a fall in the effective rate per minute and a decline in usage per customer as competition intensified and penetration gains shifted towards more rural circles. Growth was also impacted by a termination rate cut effective from April 2009,” Vodafone said on its Indian operation in a press release announcing its global half yearly results.

Vodafone added 14.1 million new subscribers in India during the half-year period.

The UK-based telecom major said that it was well positioned to benefit from the long-term opportunity in India. “We have continued to drive penetration in India and invest in network coverage. Competition in the Indian market is intense and will remain so for some time. During this phase, we will focus on leveraging Vodafone’s brand, scale and cost efficiency and disciplined capital expenditure. Economic prospects for India remain attractive and in the medium term, in-market consolidation should improve returns,” the company said.

It said that it would slightly slow down investments in India.

On the issue of tax notice from the Ministry of Finance, Vodafone said that it is currently preparing a response. “Vodafone continues to believe that neither it nor any other member of the Group is liable for such withholding tax and intends to defend this position vigorously,” the company said.

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