Vodafone revenue falls 29% in FY18, service revenue decline by 18.7%

India’s second largest telecom operator Vodafone posted service revenue of Rs 34,855 crore in FY2018, showing a decline of 18.9 percent. Vodafone [stock_quote symbol=”VOD” show=”” decimals=”” number_format=”” template=”” raw=”” class=””] stated that the revenue was impacted by the reduction in interconnect usage charge (IUC), international termination charge and continuing suppressed pricing in the industry.

Sunil Sood, Managing Director, and CEO, Vodafone India also said that their business managed its costs extremely well, which helped mitigate the reduction in their EBITDA margin despite rolling out 50k 3G/4G sites during the year.

” Vodafone has also completed the sale of their standalone tower business to ATC for Rs. 38.5 billion and is 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. Vodafone’s data usage grew 350 percent in FY18 over FY17 with average data usage being around 5 GB. the telco also added 22 million broadband users YoY to close at 59.8million 3G/4G subscribers and a total mobile user base of 222.7 million. While user base has grown around 6.5 percent during the year, the company increased 3G/4G base by 58.5 percent during the year. Besides this, the company said, “It has strengthened regional content portfolio with more than 5,000 Tamil, Telugu, Kannada, Marathi, Bhojpuri and Bengali movies. It has also joined hands with Netflix to offer 12-months free subscription for Vodafone Red subscribers on select plans with Samsung S8 & S9+ handset.”

Meanwhile, the company said Nick Read will be the next CEO of the company, succeeding Vittorio Colao. Vittorio Colao was appointed as the Group Chief Executive in July 2008.

During the decade under his leadership, Vodafone transformed from a consumer-focused 2G/3G mobile operator to one of the world’s leading converged communications companies with a diverse portfolio including the largest mobile and fixed next-generation network in Europe, a significant international enterprise division, and global leadership in the ‘Internet of Things.’