Vodafone Romania service revenue rises 2.9% in Q1 FY 2017/18

Vodafone

Vodafone excluded its India business from the total quarterly revenue amount but said services revenue in the nation fell 13.9% due to competitive pricing, triggered by India's richest man, Mukesh Ambani, and his new operator Reliance Jio.

In India, where the second largest mobile operator in the world has faced strong competition, growth was down 13.9pc in comparison to the first three months of its 2016 financial year, however the market there has stabilised compared to the previous three months.

Vodafone India posted a near 8.3% drop in service revenue in the fiscal first quarter as its voice and data business continued to reel under severe competitive pressure triggered by 4G newcomer Reliance Jio Infocomm's low-cost offerings.

Currency fluctuations haven't helped: today it said 1.7 percentage points of the 4.8 per cent revenue decline were thanks to foreign exchange movements.

Vodafone said it it is able to market high speed broadband services to 98 million households across Europe, an increase of 24 million households year-on-year.

Vodafone Romania is a subsidiary of Vodafone Group.

The company had a mobile ARPU (average revenue per user) of Euro 6.1 for the April-June 2017 quarter. The merger is expected to be completed in 2018 and Vodafone will own 45.1% of the combined group while Aditya Birla Group, Idea's parent company, will own 26%.

Revenue in the AMAP region added 1.2 percent to €2.88 billion ($3.35 billion) from the past year while reported European revenue was down 4.8 percent to €8.30 billion ($9.66 billion).

"While these latest results show that Vodafone is operating a relatively stable business in many foreign markets, the impact of Brexit on its United Kingdom operations is already being felt", said Matthew Kendall, chief telecoms analyst at The Economist Intelligence Unit.

The number of contract customers declined in the quarter by 2,000, with Vodafone claiming the cause was its decision to phase out MVNO Talk Mobile. "We ended the quarter with a closing customer base of 211.9 million".

Even as the company witnessed a decline in its data revenues, it said that data usage during the quarter showed a healthy growth.

"Vodafone India has been classified as discontinued operations for Group reporting purposes".

"Overall, this performance gives us confidence in reiterating our outlook for the year", the CEO said.

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