MOSL: TELECOM-Vodafone’s revenue growth stabilizes-Unlimited usage plans drive high volume growth at stable ARPUs
​Telecom: Vodafone’s revenue growth stabilizes; Unlimited usage plans drive high volume growth at stable ARPUs
- Wireless revenue stabilizes after two quarters of decline: Vodafone India's wireless revenue grew 1% QoQ (declined 15% YoY) to INR89b. Revenue stabilized after last two quarters of 6-7% QoQ decline. ARPU dropped 1% QoQ (and 20% YoY) to INR141. Launch of commercial offerings by RJio has arrested the revenue decline, as subscriber usage is recovering. This has offset the ARPU decline seen on the back of unlimited usage fixed-price plans.
- Voice revenue stabilizes: Voice revenue stabilized, with a 1% QoQ growth to INR67.6b, led by 1.4% subscriber growth to 212m, partly offset by voice ARPU decline of 1% to INR107.
- Data volumes record significant leap: Data revenue grew just 0.4% QoQ to INR21.3b, 24% of total revenue. Data volumes grew 84% QoQ, steered by unlimited usage plans. The monthly data usage per customer surged 78% QoQ to 1.1GB, but this was offset by 45% QoQ decline in data price to INR90/GB.
- Expect sequentially stable revenue for Bharti and Idea in 1QFY18: Vodafone's sequentially steady revenue indicates that incumbent telcos like Bharti and Idea should also see revenue stabilization in 1QFY18, on the back of voice and data volume recovery, partly offset by the decline in ARPUs due to unlimited offerings.
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