Financial Performance
Smart recorded stellar performance in
2015 with double-digit Year on Year
(YoY) growth in revenue, Earnings Before
Interest, Tax, Depreciation and Amortisation
(EBITDA) and Profit After Tax (PAT).
Growth in revenue was mainly driven by
data revenue expansions with advanced
data featuring data, Value Added Services
(VAS) and SMS contributing more than
42% to total revenue.
Despite the competitive environment of
a crowded telecommunications market in
Cambodia which is still seeing the entry
of new players, Smart continued with
its outstanding performance, recording
30% YoY growth in overall revenue. Its
sustained focus on cost management
and CAPEX efficiency has enabled the
Company to achieve a 52% and 74% YoY
increase in EBITDA and PAT respectively.
Outlook for 2016
Moving into 2016, Smart expects to see
a continuous increase in data subscribers
and data revenues as well as growth of its
VAS revenue stream.
Given continuous expansion of network
coverage, overall brand popularity and
its innovation drive including increased
market penetration of 4G LTE and the
introduction of its own music streaming
service as well as affordable smartphone
bundle plans, Smart remains cautiously
optimistic that it will further strengthen its
market position in 2016.
Despite several uncertainty factors related
to the economic outlook in Cambodia,
the regulatory environment and a
continuously competitive market, Smart
expects to grow the company’s revenues
and profits further in 2016.
•
6
th
largest
mobile
operator globally in terms of
subscriber base, with close to
172 million
subscribers
1
• Highest Net Additions of
over
29.7 million
subscribers (VLR) YoY
• Leader in Mobile Number
Portability (MNP) with >
17 million
net adds
•
CAGR of
17.1%
in revenue,
almost double that of the industry
1
Source : GSMA Intelligence Report
About Idea
Idea, an Aditya Birla Group company, is
a publicly listed company, listed on the
Bombay Stock Exchange and National
Stock Exchange.
Idea is one of the top three mobile
operators in India, with an annual
revenue in excess of USD5 billion and a
revenue market share of 18.5% for end of
September 2015. With close to 172 million
subscribers, Idea ranks sixth in the global
rankings of operators in subscriber terms,
for a single country operation.
Idea offers pan-India 2G and 3G services
and has now rolled out high-speed 4G
LTE services in eight telecom circles. It
has its own National Long Distance (NLD),
International Long Distance (ILD) and
Internet Service Provider (ISP) operations.
In select markets, Idea offers Mobile
Banking Services through a Bank-led
model, under the name ‘Idea Money’, and
has recently entered into a joint venture
with Aditya Birla Nuvo to set up its own
payment bank.
Idea’s robust network coverage is available
in over 376,000 towns and villages
through a network of 170,060 2G, 3G and
4G cell sites. Using the latest technology,
Idea provides world-class service delivery
through the most extensive network
of service centres, including over 7,446
exclusive Idea stores.
Idea’s strong growth in the Indian telephony
market is supported by its high penetration
in non-urban and rural markets.
Business Review 2015
2015 was a milestone year for Idea as it
closed the year by recording close to
172 million to its subscriber database,
catapulting it to becoming the sixth largest
mobile operator in the world
1
. Idea’s large
subscriber base presents huge opportunities
to upgrade pure voice customers to wireless
data services in the future.
As one of India’s top three mobile
operators, Idea continues to build on
its growth momentum, achieving over 1
percentage point growth in both Revenue
Market Share (RMS) and Visitor Location
Registration (VLR) on a Year on Year
(YoY) basis. Idea has stayed ahead of
the curve, recording a Compound Annual
Growth Rate (CAGR) of 17.1%, almost
double that of the combined CAGR of the
industry, for over four years. In FY15, the
Company recorded a YoY revenue growth
of 19.1%. The Company also added 29.7
million subscribers YoY - the highest net
addition on VLR in the industry. In line with
the growing demand for mobile Internet,
Idea’s mobile data volume has grown by
86% YoY. Idea’s data revenue is now over
20% of service revenue as at the third
quarter of 2015 compared to 16% in the
third quarter of 2014.
axiata group berhad | annual report 2015
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