Vodafone's Third-Quarter Revenue Falls 3.9% -- 2nd Update
February 02 2017 - 3:49AM
Dow Jones News
By Stu Woo
LONDON--Vodafone Group PLC (VOD) said Thursday third-quarter
revenue dropped 3.9% to 13.7 billion euros ($14.78 billion) from
the same period a year earlier, but that its organic revenue, which
excludes the effects of foreign exchange, from selling
telecommunications services grew 1.7%.
The British telecommunications giant said that organic revenue
growth in India dropped 1.9% because of competition from new mobile
operator Reliance Jio Infocomm Ltd., which has been offering free
data services as a promotion. Vodafone said Monday it was in
discussions to merge its Indian unit, which is the country's
second-biggest mobile operator by subscribers, with No. 3 player
Idea Cellular Ltd.
Should the proposed merger go through, the new Vodafone-Idea
company would become India's biggest and the world's second-biggest
mobile carrier by subscribers. Vodafone itself currently holds that
global No. 2 spot and would fall to No. 6 should the India
combination go through.
"This is not retrenching," Vodafone Chief Executive Vittorio
Colao said Thursday. "This is about creating the leader in the
(telecommunications) sector in India, a little short of 400 million
customers." Eschewing global expansion, Mr. Colao has focused on
positioning Vodafone as the clear No. 1 or No. 2 player in each of
its 26 countries.
Vodafone confirmed its outlook for the year, saying it expected
to meet the lower end of its growth forecast for earnings before
interest, taxes, depreciation and amortization of 3% to 6%.
-Write to Stu Woo at stu.woo@wsj.com
(END) Dow Jones Newswires
February 02, 2017 03:34 ET (08:34 GMT)
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