Vodafone India reported a 15.8% decline in its service income at Rs 19,002 Crore at the time of the H1 of this fiscal year owing to sustained price rivalry from Jio (Reliance Jio Infocomm) and current players, impact of the GST (goods and services tax), and seasonality.
“In India rivalry remains strong. There are although signs of optimistic developments in the market of India, with recent price elevation from the new entrant and consolidation of smaller operators,” claimed CEO of Vodafone Group, Vittorio Colao, to the media in the U.K. based global release of the telecom company. The telecom company that saw a capex spending of Rs 2915 Crore in the 6 Months concluded In September, witnessed its profits prior to tax, income, amortization, and depreciation (EBIDTA) margins fell from 29.6% to 21.4% when compared to the same period a year ago.
“Amid continuous strong rivalry, we posted a profit of 0.6 ppt in revenue market share (RMS) in Q1FY18 and gave a steady performance in general, claimed CEO and Managing Director of Vodafone India, Sunil Sood, to the media in an interview. Colao claimed that the firm is making good development in securing regulatory endorsements for monetizing its tower assets and its amalgamation with Idea Cellular. Vodafone India processes had 207.4 Million users by the end of September. The merger between Vodafone India and Idea Cellular is anticipated to be concluded in the H1 of the next calendar year.
Idea Cellular and Vodafone India this week claimed that they have decided to trade approximately 20,000 towers, which they openly own to a domestic arm of American Tower Corp., for Rs 7,850 Crore (almost $1.2 Billion) cash. This is a decision that will assist the two merging telecom companies trim debt while driving the tower series of the U.S. firm in a market looking for massive rollouts of 4G. If the trade is concluded before the achievement of the planned merger of Idea and Vodafone India, Vodafone India might get Rs 3,850 Crore (almost $592 Million) while Idea might get Rs 4,000 Crore (almost $615 million).
The average revenue per user (ARPU) of telecom company in the quarter two stood at Rs 132 in comparison to Rs 141 in the quarter one of the fiscal year.