Vodafone 2013 Annual Report Download - page 45

Overview Business review Performance Governance Financials Additional information
Revenue declined by -2.9% including a -8.2 percentage point adverse
impact from foreign exchange rate movements, particularly the Indian
rupee and the South African rand. On an organic basis service revenue
grew by 3.9%* driven by customer and data revenue growth, partially
offset by the impact of MTR reductions, competitive and regulatory
pressures, and a general weakening in macroeconomic conditions.
Growth was led by robust performances in India, Vodacom, Egypt,
Ghana and Qatar, offset by service revenue declines in Australia and
New Zealand.
EBITDA increased by 1.5% after a -9.4 percentage point adverse impact
from foreign exchange rate movements. On an organic basis, EBITDA
grew by 10.3%* driven primarily by strong growth in India, Vodacom and
Egypt as well as improved contributions from Ghana and Qatar, offset
in part by declines in Australia and New Zealand.
Organic
change
%
Other
activity1
pps
Foreign
exchange
pps
Reported
change
%
Revenue – AMAP 4.3 1.0 (8.2) (2.9)
Service revenue
India 10.7 3.8 (12.7) 1.8
Vodacom 3.0 (3.2) (9.7) (9.9)
Other AMAP (2.1) 3.8 (1.5) 0.2
AMAP 3.9 1.1 (8.2) (3.2)
EBITDA
India 24.0 (0.1) (13.4) 10.5
Vodacom 10.3 – (12.3) (2.0)
Other AMAP (2.6) 2.0 (0.9) (1.5)
AMAP 10.3 0.6 (9.4) 1.5
Adjusted operating prot
India 291.1 (3.4) (19.4) 268.3
Vodacom 24.8 0.3 (14.8) 10.3
Other AMAP (12.5) (9.2) 1.3 (20.4)
AMAP 26.7 (2.1) (10.6) 14.0
Note:
1 “Other activity” includes the impact of M&A activity, the revision to intra-group roaming charges from
1October 2011 and the impact of Indus Towers revising its accounting for energy cost recharges.
Referto “Organic growth” on page 188 for further detail.
India
Service revenue grew by 10.7%* driven by strong growth in mobile voice
minutes and data revenue, partially offset by the impact of regulatory
changes. Average customer growth slowed in Q4, as Q3 regulatory
changes affecting subscriber verication continued to impact gross
additions, however customer acquisition costs remained low.
For the year as a whole, growth was negatively impacted by the
introduction of new consumer protection regulations on the charging
of access fees and the marketing of integrated tariffs and value-added
services. However, in Q4 the customer base returned to growth and
usage increased. Data revenue grew by 19.8%* driven by increased
data customers and higher smartphone penetration. At 31 March 2013
active data customers totalled 37.3 million including approximately
3.3 million 3G data customers.
There was a lower rate of growth at Indus Towers, our network
infrastructure joint venture, with a slow down in tenancies from smaller
entrants, some operators exiting sites following licence cancellations
and a change in the pricing structure for some existing customers in the
rst half of the year.
EBITDA grew by 24.0%*, with a 3.3* percentage point increase in EBITDA
margin, driven by the higher revenue, operating cost efciencies
and the impact of lower customer acquisition costs, partially offset
by inationary pressure.
Vodacom
Service revenue grew by 3.0%* mainly driven by growth in Tanzania,
the Democratic Republic of Congo (‘DRC’) and Mozambique. In South
Africa, service revenue decreased by -0.3%*, with the growth in data
revenue and the success of new prepaid offers being more than offset
by MTR reductions, macroeconomic weakness leading to customer
spend optimisation with lower out-of-bundle usage, and a weaker
performance from independent service providers. Data revenue
in South Africa grew by 16.1%*, with higher smartphone penetration and
data bundles offsetting continued pricing pressure. Vodafone Smart and
Vodafone Red, our new range of integrated contract price plans, were
introduced in South Africa during March 2013.
On 10 October 2012, Vodacom announced the commercial launch
of South Africa’s rst LTE network, with 601 LTE sites operational
at 31 March 2013.
Vodacom’s mobile operations outside South Africa delivered strong
service revenue growth of 23.3%*, excluding Vodacom Business Africa,
driven by a larger customer base and increasing data take-up. M-Pesa
continues to perform well in Tanzania, with approximately 4.9 million
active users, and was launched in DRC in November 2012. During the
year Vodacom DRC became the rst operator to launch 3G services
in the DRC.
Africa, Middle East and Asia Pacic
India
£m
Vodacom
£m
Other
AMAP
£m
Eliminations
£m
AMAP
£m
% change
£m Organic
Year ended 31 March 2013
Revenue 4,324 5,206 3,937 (1) 13,466 (2.9) 4.3
Service revenue 4,292 4,420 3,634 (1) 12,345 (3.2) 3.9
EBITDA 1,240 1,891 1,047 – 4,178 1.5 10.3
Adjusted operating prot 221 1,196 261 – 1,678 14.0 26.7
EBITDA margin 28.7% 36.3% 26.6% 31.0%
Year ended 31 March 2012
Revenue 4,265 5,638 3,965 – 13,868 4.2 8.4
Service revenue 4,215 4,908 3,628 – 12,751 3.7 8.0
EBITDA 1,122 1,930 1,063 – 4,115 2.9 7.8
Adjusted operating prot 60 1,084 328 – 1,472 15.7 22.4
EBITDA margin 26.3% 34.2% 26.8% 29.7%
43 Vodafone Group Plc
Annual Report 2013