Financial impact on Vodafone
The transaction enhances Vodafone’s growth profile on a pro forma statutory basis, with Vodafone’s revenue and EBITDA CAGR increasing by around one and a half percentage points over the three year period to 31 March 2010.
The transaction is expected to be broadly neutral to adjusted earnings per share in the first year post acquisition and accretive thereafter excluding the impact of intangible asset amortisation for the transaction. Including this impact, the transaction is expected to be approximately seven percent dilutive to adjusted earnings per share in the first year post
today posted a 14.3 per cent jump in revenues at 10.47 billion pounds for the December quarter 2008. Vodafone’s revenues stood at $10.47 billion in the three months ended December, climbing 14.3 per cent as compared to the year-ago period. It had revenues to the tune of 9.16 billion pounds in the corresponding period a year agoPlcPropelled by a strong performance in India, British telecom major Vodafone
A 37.3 per cent rise in revenues from India at 674 million pounds was one of the main reasons for the good third quarter results. Service revenue in India grew by 37.3 per cent, or “by 29.6 per cent at constant exchange rates”.
The rate of growth was lower than the previous quarter due to the increasingly competitive market and an increased revenue base. Nonetheless, the quarter under review showed a larger absolute increase in service revenue measured in local currency than the previous quarter.
Net customer additions averaged 2.1 million per month (in India), the highest since the business was acquired, bringing the closing customer base to 60.9 million. Net customer additions benefited from the launch of services in six new circles during the quarter. Customer penetration in the Indian mobile market reached 30 per cent at 31 December 2008
INDIA now accounts for about 45% of Vodafone’s global traffic — 141.3 billion minutes of usage — compared to about 37% during the same period last year. In fact, India single-handedly accounted for the group’s increase in minutes of cellular use, contributing about 70% of the increase. Vodafone Essar’s subscriber additions grew rapidly as the company extended services to six new circles during the October-December 2008 quarter, making it a pan-India player. The telecom operator added a little over 6.3 million customers during Q3, taking its subscriber base to 61 million.