Vodafone 2016 Annual Report Download - page 36

Revenue decreased 1.3%, with strong organic growth offset
by a 7.7percentage point adverse impact from foreign exchange
movements, particularly with regards to the South African rand, Turkish lira
and Egyptian pound. On an organic basis, service revenue was up 6.9%*
driven by growth in the customer base, increased voice and data usage,
and continued good commercial execution. Overall growth was negatively
impacted by MTR cuts and other regulatory charges, mainly in India.
EBITDA decreased 1.1%, including a 7.9 percentage point adverse impact
from foreign exchange movements. On an organic basis, EBITDA grew
7.2%*, driven by growth in all major markets.
Organic
change
%
Other
activity1
pps
Foreign
exchange
pps
Reported
change
%
Revenue – AMAP 7. 0 (0.6) ( 7. 7 ) (1.3)
Service revenue
India 5.0 – (0.2) 4.8
Vodacom 5.4 – (12.7 ) ( 7. 3 )
Other AMAP 10 .1 (1.9) (9.3) (1.1)
AMAP 6.9 (0.7) ( 7. 0 ) (0.8)
EBITDA
India 4.1 – (0.3) 3.8
Vodacom 12.7 – (15. 5) (2.8)
Other AMAP 4.5 (1.3) ( 7.1) (3.9)
AMAP 7.2 (0.4) ( 7. 9) (1.1)
AMAP adjusted
operating prot 11.7 (1.1) (10.0) 0.6
Note:
1 “Other activity” includes the impact of M&A activity. Refer to “Organic growth” on page 191
for further detail.
India
Service revenue increased 5.0%* (Q3: 2.3%*; Q4: 5.3%*) as customer
base growth and strong demand for 3G data was partially offset
by a number of regulatory changes, including MTR cuts, roaming price
caps and an increase in service tax. Excluding these impacts, service
revenue growth was 10.0%*. Q4 growth recovered versus Q3 as voice
price competition moderated during the quarter and regulatory impacts
began to reduce in March.
We added 14.1 million customers during the year, taking the total
to 197.9 million. Growth in total minutes of use continued, but this was
offset by a decline in average revenue per minute as a result of ongoing
competition on voice business.
Data growth continues to be very strong, with data usage over the
network up 64% year-on-year, and the active data customer base
increasing by 3.8 million to 67.5 million. The 3G customer base grew
to 27.4 million, up 41.4% year-on-year, and smartphone penetration
in our four biggest urban areas is now 52.8%. In Q4, browsing revenue
represented 19.2% of local service revenue, up from 14.9% in the
equivalent quarter last year.
In the Netherlands, service revenue increased 0.3%*, with growth
moving into decline during H2 (Q3: 0.2%*; Q4: -1.3%*) as continued
gains in xed line (partly aided by a Q4 accounting reclassication)
were offset by a decline in mobile contract ARPU. In Portugal, xed
service revenue continues to grow strongly and mobile is recovering
as ARPU and churn pressure from the shift towards convergent pricing
begins to moderate. Our FTTH network now reaches 2.4 million
homes. Ireland returned to service revenue growth in Q2, with strong
momentum in xed line and an improving trend in mobile. The initial
4G roll-out is complete with 95% population coverage. In Greece
macroeconomic conditions remained a drag, however good cost
control led to improved margins. The integration of HOL is progressing
according to plan.
EBITDA declined 1.5%*, with a 1.0* percentage point decline in EBITDA
margin, mainly driven by lower margins in Portugal and Romania.
Africa, Middle East and Asia Pacic1
India
£m
Vodacom
£m
Other AMAP
£m
Eliminations
£m
AMAP
£m
Restated
2015
£m
% change
£Organic
Year ended 31 March 2016
Revenue 4, 516 3,887 4, 814 (9) 13, 208 13, 382 (1.3) 7. 0
Service revenue 4,497 3,233 4 ,122 (9) 11, 8 43 11, 93 5 (0.8) 6.9
Other revenue 19 654 692 – 1,365 1,447
EBITDA 1,331 1,484 1,227 –4,042 4,086 (1.1) 7. 2
Adjusted operating prot 469 992 352 –1,813 1,802 0.6 11.7
EBITDA margin 29.5% 38.2% 25.5% 30.6% 30.5%
Note:
1 The Group has amended its reporting to reect changes in the internal management of its Enterprise business. The primary change has been that on 1 April 2015 the Group redened its
segments to report international voice transit service revenue within Common Functions rather than within the service revenue amount disclosed for each country and region. The service
revenue amounts presented for the year ended 31 March 2015 have been restated onto a comparable basis together with all disclosed organic service revenue growth rates. There is no impact
on total Group service revenues or costs.
Vodafone Group Plc
Annual Report 2016
34
Operating results (continued)