Business

VODAFONE INDIA FULL YEAR FY18 RESULTS

Vodafone India, one of the leading total telecommunication service providers in the country announced its Full Year financial results (IFRS) for the year ended March 31, 2018

Added 14mn customers in FY18 to end the year with a closing base of 223mn
 Service revenue at INR 34,855 crores (-18.9% year-on-year)
 EBITDA at INR 7,766 crores, EBITDA margin at 22.1%
 Enhanced capital intensity to 20.7% with targeted investments in key circles
 Launched Voice over LTE (VoLTE) services in India
 Sale of standalone towers to American Tower completed
 Merger with Idea on track: awaiting final leg of approvals

Vodafone India, one of the leading total telecommunication service providers in the country announced its
Full Year financial results (IFRS) for the year ended March 31, 2018.

Key Financial Highlights: Vodafone India Standalone figures
Financial Performance
 Service revenue at INR 34,855 crores in FY18 (down by 18.9%), impacted by reduction in interconnect
usage charge, international termination charge and continuing suppressed pricing in the industry.
 EBITDA at INR 7,766 crores in FY18
 EBITDA margin of 22.1%; strong cost management performance mitigated decline in EBITDA margin.
 Operating Free Cash Flow (OFCF) at INR 1,214 crores in FY18; continued targeted capital investments
and reduced margins due to competitive intensity impacted cash flow

 Sustained and prioritized capital investments of INR 7,251 crores in FY18; (Capex intensity of 20.7%)
Operational Performance
 A base of 223 million customers (up 6.5% YoY) serviced through a network of ~139,000 total sites
 Substantial rural presence with a customer base of 120 million in Mar18
 Gained Revenue Market Share; Q3 FY18 at 20.9%
 Service Revenue ARPU at INR 119 in Q4 FY18; consumption shift to deeply discounted bundled plans
 Vodafone Business Services now contributing c.20% of Service revenues (FY18)

Vodafone Business Services: Partnering enterprises on their digital journey; Powering Digital India
 Vodafone’s enterprise portfolio continues strong performance with leadership in Revenue Market Share
(RMS). This is reflected across Large Enterprise, Government, SME and Start-up segments
 Enterprise business growing faster than industry rate
 With the launch of Super IoT, Vodafone is now the only telco to offer an end-to-end IoT solution in this
fast growing segment
 Exceptional growth in both Fixed Line services in Data and Voice products. Strong uptake on newly
launched SIP Trunk services.
 Deepened engagements with State governments and Public sector enterprises with key deployments
under the Smart Cities mission
 Increased digital customer enablement through apps and portals, reducing TAT and enhancing customer
experience
 Delivering fully digital network for fixed line network services

Driving Data
 Data usage grows c.350% in FY18 over FY17; 523% in Q4 FY18 YoY
 76 million data users, of which 53.5million use >1MB
 Added 22 million broadband users YoY to close at 59.8million 3G/4G subscribers
 Data usage exploding and usage/sub (for users >1MB for Q4FY18) at 5.0GB
 Data usage growth led by higher smartphone penetration at over 40% of total customer base(Mar’18
exit)
 Accelerated data adoption by making 4G smartphones more affordable with attractive offers via
partnerships with leading handset manufacturers- Micromax, Samsung, Nokia, Lava, Intel, Intex, One
Plus etc.
Driving Digital
 Announced new brand positioning – “The Future is Exciting. Ready?” positioning Vodafone as a
modern contemporary, inspiring and future fit brand with a progressive view of the world. This new
positioning underlines Vodafne’s belief that new technologies and digital services will play a positive role
in transforming society and enhancing individual quality of life over the years ahead.
 Launched Voice over LTE (VoLTE) services enabling customers to experience the best from
Vodafone’s Data Strong Network. Customers enjoy HD quality crystal clear voice with super call connect
when they call any mobile or landline network using Vodafone VoLTE
 Launched “Happy to Help…IN A CLICK”, a new service philosophy offering new age, digitally evolved
self-care experiences to customers, enhancing speed and convenience of service
 Introduced gamification in MyVodafoneApp to increase usage, drive engagement and enhance
experience

Driving Content
 Vodafone Play – Strengthened regional content portfolio with more than 5,000 Tamil, Telugu, Kannada,
Marathi, Bhojpuri and Bengali movies. Vodafone Play – your one window to the world of entertainment
has more than 10000+ movies, over 300 Live TV channels, International premium TV shows and Original
web series across all genres. Vodafone Play is also bundled Free with Vodafone Red plan.
 Netflix – Vodafone Red offer – Partnership with Netflix to offer 12-months free subscription for Vodafone
Red subscribers on select plans with Samsung S8 & S9+ handset.
 Vodafone – Magzter – Partnership with Magzter, the world’s largest digital magazine newsstand – for
Vodafone customers to access over 100,000 issues of 4,000+ best-selling International, Indian and
Regional magazines across the globe.
 Vodafone Games – launched in partnership with Opera – an online gaming platform that lets customers
access a premium catalogue of 400+ popular games
Awards and Recognitions
 Vodafone was recognized amongst the top 10 Most Trusted Brands in the country in the Brand Trust
Report 2018 published by Brand Equity
 Vodafone won 5 awards in EFFIES 2018 for Asha Bala, #MakeMostofNow,#LookUp and #FarmerBnB
 Vodafone India recognized as Aon Best Employer in India for 2018
 Vodafone Business Services won 4 ‘CIO Choice Awards 2018’ – Telecom Carrier (Leased Line),
Telecom Carrier (Mobile Access), Internet of Things and Telecom Carrier (International Access)
 Vodafone won 5 awards in ‘Voice & Data Young Leadership Award 2017’ for IoT/Customer Service,
Enterprise Service, mGovernance, Marketing Services and CSR
 Vodafone received the ‘IISSM Industrial Sector Safety Award 2017 in Telecom Sector’ for outstanding
performance in industrial safety & promoting safe work environment

Sunil Sood, Managing Director and CEO, Vodafone India commented:

“Operationally, it was an extremely challenging year wherein industry revenues were adversely impacted
due to a reduction in interconnect usage charges, international termination charges and continuing
suppressed pricing. Our business managed costs extremely well, which helped mitigate the reduction in
our EBITDA margin despite rolling out 50k 3G/4G sites during the year. Our strategic focus on
democratizing data, enriching the content portfolio and bundled offerings resulted in us gaining a
disproportionate share of customers from the ongoing consolidation in the industry to become the
telecom service provider of choice to 223 million customers, We remain committed to playing our due
role in enabling Digital India by fulfilling the evolving needs of increasing volumes, speed and
connectivity solutions of both retail and enterprise customers. Additionally, we completed the sale of our standalone tower business to ATC for INR 38.5bn and are making good progress in securing the
necessary regulatory approvals for the merger of Vodafone India and Idea Cellular. The merger is
expected to complete in June 2018.”

About Vodafone India:
Vodafone India is a 100% fully owned subsidiary of the Vodafone Group Plc. with operations across the country serving 223
million customers (over 120 million in rural areas). Commencing operations in 2007, Vodafone is today India’s largest foreign
direct investor, with a robust, award winning business and committed for the long term. Vodafone Business Services serves the
needs of enterprises and government by providing total telecommunications (Voice and Data) solutions across mobility and
wireline platforms. Our mobile wallet, M-Pesa is a unique and innovative money transfer service from Vodafone that fosters
financial inclusion.
Committed to optimizing the near ubiquitous reach of mobile telephony to address national developmental priorities, the

Vodafone Foundation partners is actively engaged in community development initiatives especially in the domains of m-
Women, m-Agriculture, m-Education and Disaster Relief. Building on its global experience and expertise, an outreach across

India and offering a comprehensive portfolio of technologies- 2G, 3G & 4G, Vodafone is uniquely positioned to actualize the
vision of Digital India.
Globally, Vodafone Group is one of the world’s largest telecommunications companies and provides a range of services
including voice, messaging, data and fixed communications. Vodafone Group has mobile operations in 26 countries, partners
with mobile networks in 48 more, and fixed broadband operations in 19 markets. As of 31 March 2018, Vodafone Group had
522.8 million mobile customers and 18.8 million fixed broadband customers, including India and all of the customers in
Vodafone’s joint ventures and associates.

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