ideocon Telecom, the versatile, friendly and dynamic telecom brand of the Indian conglomerate Videocon Group, posted an impressive 43% growth in its Net Revenue for GSM business in Q1 FY 2015-16 over same quarter last financial year. The telco reported a consolidated Top line telecom revenue of 527.07 Cr in Q1 2015-16 and is targeting consolidated Top line Revenue of 3000 Cr in year 2015-16.
Going aggressive on Customer acquisition, Videocon Telecom achieved 32% growth in its Subscriber base over same quarter last year. While, the June 15 Industry Net subscriber addition no’s are still awaited, within April & May 2015, against the industry net subscriber addition (-) 90K in the 4 operational circle of the telco, Videocon Telecom added 311K Net subscribers addition. The telco plans to acquire 10Mn new subscribers this financial year.
Despite the impact of increase in Service tax incidence and reduction in Roaming rates, Videocon Telecom reported a 21% improvement in its NRPM (Net rate per min) in Q1 this year over previous year. The Telco also reported a 15% growth in its minutes of usage during the same period.
Owing to its strategy to upgrade its Network to 2.75 G EDGE, the telco has been substantially growing its data revenues. Videocon Telecom has doubled its data revenues in Q1 this year over same quarter last year, surpassing the industry growth. Data now contributes to approx 12% of the Telco’s Gross Revenue and the company aims at taking up the data contribution to GR at 15% by end of current Financial Year.
After delivering one of the fastest EBITDA positive in Telecom history in its Punjab circle, the telco is targeting EBITDA positive in its MP and Haryana circles by the end of this financial year. The telco also reported a 42% improvement in its operating loss in its GSM business, against an operating loss of (-)75.9 Cr in Q1 last financial year, the telco reported an operating loss of (-) 44.75 Cr in Q1 2015-16. Mr. Arvind Bali, Director & CEO, Videocon Telecommunications Ltd. said
said, “It is said, ‘well begun is half done’, and I am pleased with the results of Q1 this year. We have achieved 99% of our targeted Gross Revenue in Quarter 1, and this is despite the increase in Service Tax incidence and Roaming rate implication. Our GSM Net Revenue is up by 43% over same quarter last year, and all KPIs, be it gross level or unit level, look promising.
Being a new entrant, our strategy was to attain incremental Customer and Revenue market leadership in our operational circles, and we have been able to achieve the same. While the June’15 Industry Net Subscriber addition no’s are still awaited, in April and May 15, the industry net adds in our 4 operational circles was (-) 90K, while we added 311K net subscribers. We aim to maintain and accelerate this growth rate further.”
“We are targeting over 10 Mn new subscriber acquisitions, Top line Revenue target 3000 Cr and EBITDA positive in MP and Haryana telecom circles in financial year 2015-16”, Mr. Bali added.