Vodafone - Traffic Growth Strong - Motilal Oswal

VODAFONE 3QFY11: First instance of large operator reporting RPM increase QoQ; Traffic growth strong;

RPM increased 0.6% QoQ to Rs0.57 (v/s 0.6-1.2% decline for Bharti/Idea).

Vodafone's minutes calculation is different from peers as the company counts on-net minutes only once (while others count them as two minutes).

Adjusting for this, we estimate RPM of Rs0.43 (down 12.9% YOY but up 0.6% QoQ).

3QFY11 Mobile traffic grew 33% YoY and 5.5% QoQ (v/s 4.5% QoQ growth for Bharti and 10% for Idea).

ARPU declined 15.8% YoY and 0.6% QoQ (v/s 1.6% decline for Bharti and 0.6% increase for Idea) to Rs176.

Revenue (implied) increased 15.9% YoY and 6.2% QoQ to Rs63.3b.

Source : Equity Bulls

Keywords