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In what may be its last set of results as Vodafone India, the company said service revenue fell to €955 million (₹7,666 crore) in the three months ended June from €1.38 billion a year earlier. The decline from the preceding quarter was limited to 1.4% as monthly data usage quadrupled to 4.6 GB per user on average — the largest among its regions — “following a steep decline in data prices,” Vodafone said in a statement on Wednesday.
Vodafone, which along with Idea, paid the government dues of over ₹7,200 crore this week, said it expects the merger to close in August, having gone past the earlier deadline of June end. The combined entity, to be India’s largest, will be called Vodafone Idea Ltd. Its CEO will be Balesh Sharma and the telco will remain listed.
“In India, where competition remains intense, we have now received conditional approval from the Department of Telecommunications for the merger of Vodafone India and Idea Cellular, which we aim to close before the end of August, allowing us to unlock substantial synergies,” Vodafone Group CEO Vittorio Colao<\/a> said in the statement.
![](\"https:\/\/epaper.timesgroup.com\/Olive\/ODN\/TheEconomicTimes\/get\/ETD-2018-07-26\/image.ashx?kind=block&href=ETD%2F2018%2F07%2F26&id=Pc0032900&ext=.jpg&ts=20180726012141\")
<\/h1>New Co Expects to Log $10b in Savings<\/span><\/strong>
CFO Nick Read succeeds Colao from September.
Colao said after the merger, Vodafone will continue to focus on the 12 circles that accounted for 90% of its operating income. The company is traditionally stronger in the urban areas, while Idea is stronger in the semi-urban and rural areas.
Pre-integration work with Idea is “well advanced, ensuring a fast start on synergy capture,” Vodafone said in a separate presentation.
The combined entity will be the largest by number of customers — some 430 million — and by revenue market share, at over 37%. The new company expects to clock $10 billion in savings over time — touching $2.1billion annually by the fourth year after the merger — making it stronger to face rivals Bharti Airtel and Reliance Jio Infocomm.
Vodafone Idea will start with gross debt of some Rs 125,000 crore and may need to infuse cash to pare debt and expand 4G<\/a> operations to catch up with Jio and Airtel, analysts said.
On their own, Vodafone and Idea had found the competition too hot to handle, with revenue falling and earnings getting eroded. Idea is expected to widen its loss when it reports first-quarter results on July
30. Airtel, India’s current market leader, reports results on Thursday, followed by Mukesh Ambani-owned Jio a day later.
In the first quarter, Vodafone India recorded its lowest-ever average revenue per user (ARPU) — a key performance metric — at Rs 102 compared with Rs105 in the quarter ended March. This was mainly because subscribers opted for lowerpriced plans with similar benefits as costlier packs as Vodafone responded to competition.
“We continued to retain our highvalue customers albeit at lower price levels,” Vodafone said.
SIM CONSOLIDATION<\/span><\/strong>
The telco said any further impact of the tariff wars was staved off because subscribers have started spending on a single SIM, following the increased penetration of ‘unlimited’ offers, which have now been adopted by 29% of its pre-paid customers.
Its total user base declined by 3 million on quarter, reflecting the ‘SIM consolidation’ trend across the market, and now totals 219.7 million, of which 77 million used data, including 30.9 million 4G subscribers, Vodafone said.
Vodafone India has done well by “holding on to its postpaid ARPU at Rs 432 despite Jio’s pricing aggression and continuing customer migration to lower-priced bundled packs from higher ones is also a definite positive, indicating good customer retention,” said Naveen Kulkarni, a telecom analyst at PhillipCapital.
The merged entity would need to infuse at least Rs 15,000 crore as fresh capital to pare debt and generate funds needed to increase the combined 4G network capacity, currently several notches below Jio and Airtel, he said.
“This is absolutely necessary if they are to stop present customer and revenue losses to competition and grow their combined user base,” he added.
The company said it is making good progress in securing regulatory approvals for merging Indus Towers into Bharti Infratel, having received clearances from the Competition Commission of India and the Securities & Exchange Board of India. “…we expect the merger to close before the end of March 2019,” it said.
Vodafone and Idea can look at monetising their stakes in Indus and infusing the funds in the new entity, experts said. CFO Read said the Vodafone Group “will focus on supporting the JV management team”.
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孟买:沃达丰(Vodafone)印度的服务收入在第一季度下降了31%在战争和关税削减一些指控是印度第二大电信移动到关闭与第三合并知道细胞到下个月。
这可能是像沃达丰印度最新发布的业绩报告中,该公司表示服务收入跌至€9.55亿(₹7666卢比)截至6月的三个月里从一年前的13.8亿€。仅限于前一季度下降1.4%,月度数据使用四倍每用户平均4.6 GB -在其地区最大的“数据价格急剧下降后,沃达丰(Vodafone)周三在一份声明中说。
沃达丰(Vodafone),以及想法,政府支付会费的₹7200卢比的本周,8月表示,预计合并关闭,截止日期6月早些时候已经过去了。合并后的实体,是印度最大的,将被称为沃达丰想法有限公司CEO会Balesh沙玛和电信仍将上市。
“在印度,竞争依然激烈,我们现在已经收到有条件批准的合并沃达丰电信部的细胞印度和想法,我们的目标是在8月底之前结束,让我们开启实质性的协同效应,“沃达丰集团首席执行官维托里奥·科劳在声明中说。
新公司预计将日志10 b美元储蓄
首席财务官尼克成功Colao从9月读。
科劳表示,合并后,沃达丰将继续专注于12圈,占营业收入的90%。公司通常是在城市地区,而思想是在半城市和农村地区。
整合前处理的想法是“先进,确保协同捕捉快速启动,“沃达丰表示在一个单独的报告。
合并后的实体将最大数量的客户- 4.3亿收入市场份额,超过37%。新公司预计钟100亿美元储蓄随着时间的推移,触摸21亿美元每年合并后的第四年,使其更强的面对竞争对手Bharti Airtel和依赖Jio Infocomm。
沃达丰的想法将会与总负债约125000卢比,可能需要注入资金削减债务和扩大4 g操作要赶上Jio Airtel,分析师表示。
,沃达丰(Vodafone)和想法已经发现了竞争太热来处理,与收入下降,利润被侵蚀。想法是将扩大其损失7月发布第一季财报
30.Airtel,印度目前的市场领导者,结果周四报道,其次是穆克什Ambani-owned Jio一天后。
在第一季度,沃达丰印度降至历史最低记录每用户平均收入(ARPU)——一个关键性能指标在Rs - 102与Rs105一季度截至3月。这主要是由于用户选择了更具计划与相似的好处一样昂贵的包沃达丰回应竞争。
“我们继续保留highvalue客户虽然以较低的价格水平,“沃达丰说。
SIM整合
电信表示,任何进一步的影响关税战争是避免了因为用户已经开始一个SIM,支出增加渗透后的“无限”提供,现已全部采用29%的预付费客户。
其总用户下降了300万年一季度,反映了SIM整合的趋势。在市场上,现在总数2.197亿人,其中7700万使用数据,包括3090万4 g用户,沃达丰(Vodafone)说。
沃达丰印度做得很好了”持有的邮资已付的ARPU Rs 432尽管Jio定价侵略和持续的客户迁移到低价捆绑包从较高的也是一个明确的积极的,显示良好的客户保留,”乃文Kulkarni说PhillipCapital电信分析师。
合并后的实体将需要注入至少15000卢比作为新资本削减债务并生成资金需要增加合并后的4 g网络容量,目前几个等级低于Jio Airtel,他说。
“这是绝对必要的,如果他们停止存在客户和收入损失的竞争和发展他们的用户群,”他补充道。
该公司表示,在获得监管批准合并取得良好进展印度河塔为例,从竞争委员会收到许可的印度和印度证券交易委员会。“…我们预计合并2019年3月底前关闭,”它说。
沃达丰(Vodafone)和想法可以看看套现股份在印度河和注入资金在新实体,专家说。首席财务官表示,沃达丰集团“重点支持企业管理团队”。
这可能是像沃达丰印度最新发布的业绩报告中,该公司表示服务收入跌至€9.55亿(₹7666卢比)截至6月的三个月里从一年前的13.8亿€。仅限于前一季度下降1.4%,月度数据使用四倍每用户平均4.6 GB -在其地区最大的“数据价格急剧下降后,沃达丰(Vodafone)周三在一份声明中说。
沃达丰(Vodafone),以及想法,政府支付会费的₹7200卢比的本周,8月表示,预计合并关闭,截止日期6月早些时候已经过去了。合并后的实体,是印度最大的,将被称为沃达丰想法有限公司CEO会Balesh沙玛和电信仍将上市。
“在印度,竞争依然激烈,我们现在已经收到有条件批准的合并沃达丰电信部的细胞印度和想法,我们的目标是在8月底之前结束,让我们开启实质性的协同效应,“沃达丰集团首席执行官维托里奥·科劳在声明中说。
首席财务官尼克成功Colao从9月读。
科劳表示,合并后,沃达丰将继续专注于12圈,占营业收入的90%。公司通常是在城市地区,而思想是在半城市和农村地区。
整合前处理的想法是“先进,确保协同捕捉快速启动,“沃达丰表示在一个单独的报告。
合并后的实体将最大数量的客户- 4.3亿收入市场份额,超过37%。新公司预计钟100亿美元储蓄随着时间的推移,触摸21亿美元每年合并后的第四年,使其更强的面对竞争对手Bharti Airtel和依赖Jio Infocomm。
沃达丰的想法将会与总负债约125000卢比,可能需要注入资金削减债务和扩大4 g操作要赶上Jio Airtel,分析师表示。
,沃达丰(Vodafone)和想法已经发现了竞争太热来处理,与收入下降,利润被侵蚀。想法是将扩大其损失7月发布第一季财报
30.Airtel,印度目前的市场领导者,结果周四报道,其次是穆克什Ambani-owned Jio一天后。
在第一季度,沃达丰印度降至历史最低记录每用户平均收入(ARPU)——一个关键性能指标在Rs - 102与Rs105一季度截至3月。这主要是由于用户选择了更具计划与相似的好处一样昂贵的包沃达丰回应竞争。
“我们继续保留highvalue客户虽然以较低的价格水平,“沃达丰说。
SIM整合
电信表示,任何进一步的影响关税战争是避免了因为用户已经开始一个SIM,支出增加渗透后的“无限”提供,现已全部采用29%的预付费客户。
其总用户下降了300万年一季度,反映了SIM整合的趋势。在市场上,现在总数2.197亿人,其中7700万使用数据,包括3090万4 g用户,沃达丰(Vodafone)说。
沃达丰印度做得很好了”持有的邮资已付的ARPU Rs 432尽管Jio定价侵略和持续的客户迁移到低价捆绑包从较高的也是一个明确的积极的,显示良好的客户保留,”乃文Kulkarni说PhillipCapital电信分析师。
合并后的实体将需要注入至少15000卢比作为新资本削减债务并生成资金需要增加合并后的4 g网络容量,目前几个等级低于Jio Airtel,他说。
“这是绝对必要的,如果他们停止存在客户和收入损失的竞争和发展他们的用户群,”他补充道。
该公司表示,在获得监管批准合并取得良好进展印度河塔为例,从竞争委员会收到许可的印度和印度证券交易委员会。“…我们预计合并2019年3月底前关闭,”它说。
沃达丰(Vodafone)和想法可以看看套现股份在印度河和注入资金在新实体,专家说。首席财务官表示,沃达丰集团“重点支持企业管理团队”。
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