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Vodafone India service revenue has increased by 9 percent to reach 1,125 million pound in comparison to 1,024 million pound in quarter ended 31st December, 2011.
The increase was driven by strong growth in mobile voice minutes and a stable competitive environment.
Vodafone India growth in this quarter was -2.0 percentage points lower than the previous quarter primarily due to the impact of regulatory
changes. During the quarter subscriber verification regulations were changed, leading to a sharp fall in gross customer additions which
resulted in net customer disconnections. Regulation was also introduced to further limit the processing fees that operators can charge.
Data revenue grew by 23.8% driven by an increase in customers taking data bundles and an increase in 2G data pricing. At 31 December 2012
active data customers totalled 33.1 million, including 2.5 million 3G subscribers.
The organic growth at Indus Towers slowed following a reduction in new tenancy additions, however reported revenue growth in the quarter
increased as a result of energy costs charged to operators being included in service revenue for the first time.
Vittorio Colao, Chief Executive, said "We are addressing this through firm actions on cost efficiency, and continuing to invest in areas of
growth potential. We continue to make progress in our Vodafone 2015 strategy, with good revenue growth in data and emerging markets, the
launch of LTE services in another four markets and the acquisition of
new spectrum."
Vodafone Group Capital expenditure of £1.5 billion in the quarter was broadly similar to the previous year and the investment remains focused
on network quality in terms of coverage, reliability and speed.
Free cash flow of £1.2 billion in the quarter was £0.3 billion lower year-on-year due to adverse movements in foreign exchange rates and the
impact of the inclusion of CWW. Cumulative free cash flow was £3.4 billion, some £0.7 billion lower than the prior year, reflecting adverse
foreign exchange rate movements and the cessation of dividends from SFR following the disposal of our stake in the last financial year.