Videocon Telecom has reported topline revenues of Rs 621 crore for the quarter ended September 30. According to a Press Trust of India report, the telco had reported revenues of Rs 488 crore in the same quarter last year, which represents a growth of 27% year-on-year (y-o-y).
The company achieved a 29% growth in its subscriber base over same quarter last year. While, the September 15 industry net subscriber addition numbers are still awaited, Videocon Telecom reported net subscriber addition of 313K in its 4 fully operational circles i.e. Punjab, Haryana, Madhya Pradesh and Chhattisgarh and Gujarat in July & August 2015.
Videocon also said that it has nearly doubled its data revenues from Q2FY15 at 12% of total revenues this quarter i.e. around Rs 74.52 crore. The company also added that it reported a 137% y-o-y increase in data consumption, and it aims taking up the data contribution to gross revenue at 15% by end of current financial year. The telco also reported a narrowing operating loss of Rs 47 crore in Q2 FY16 against an operating loss of Rs 81.3 crore in the same quarter last year.
Videocon Telecom CEO Arvind Bali said that the increase in service tax and roaming charges affected the total revenues this quarter. “We have achieved 95% of our targeted Gross Revenue in Quarter 2, and had there been no change in the increase in Service Tax incidence and Roaming rate implication, our achievement would have been 99%,” he added.
4G operations launch: It’s worth noting that in August, Bali had said that the company would be launching 4G services in Punjab, Haryana, Gujarat and Madhya Pradesh circles by the end of the fiscal year. Bali had added that the telco has earmarked an investment of Rs 550 crore to roll out the 4G services in the identified circles. Videocon holds 5 MHz spectrum in the 1800 MHz band in these circles.
Interestingly, Bali had said in December last year that they had shelved 4G plans due to poor acceptability of the service launched by other telcos. Instead, they had upgraded Videocon’s 2G network to 2.75G EDGE network.