Vodafone Idea Q4 Results: Net losses narrowed, subscribers dipped

Telecom company Vodafone Idea recently reported its results for the March quarter. While revenues increased slightly, net losses narrowed down from the previous year. However, decline in subscribers count remains a worry for the company.

Meanwhile, the Vodafone Idea share price performance has been nothing to write home about in recent times. In 2023 so far, the Vodafone Idea share price has eased by almost 12% while over the past year it has declined by more than 18%.

So, how did Vodafone Idea perform in the March quarter? What were the Vodafone Idea revenues in the March quarter? What were the Vodafone Idea operating margins? What made the Vodafone Idea subscriber count fall? What made Vodafone Idea net losses narrow? Was there any dividend declared by Vodafone Idea? Let’s try and decode!

Decoding Vodafone Idea Q4 earnings

Vodafone Idea revenues:

• Gross revenues for the Jan - Mar ‘23 period came in at Rs 10,531.9 crores. This marked a growth of 2.9% from the previous year. Although the subscriber base declined, a rise in Average Revenue Per User (ARPU) and increase in data usage by its customers can be attributed as factors which led to revenue growth.
   
• Service revenues, which made up 99.8% of the total revenues of the company came in at Rs 10,506.5 crores, up 2.7% from the previous year.

Vodafone Idea ARPU: Vodafone Idea’s ARPU for the March quarter stood at Rs 135. This denotes a growth of 8.9% from the previous year.

A 11% yearly rise in data volume consumption among its existing subscribers base to 5,802 billion MB was the primary reason for the rise in ARPU in the March quarter.

Vodafone Idea subscribers: Subscribers count at the end of the March quarter stood at 225.9 million. This denotes a decline of 7.3% from the previous year.

The trend of Vodafone Idea’s subscriber loss continued in the Jan - Mar ‘23 period. Jio and Airtel continued to nibble away at Vodafone’s subscriber base.

Vodafone Idea operating margins: Vodafone Idea’s operating margins at the end of the March quarter came in at 40%, down from 45.4% in the previous year.

Meanwhile, operating profit also declined by 9.4% from the previous year to Rs 4,210.3 crores in the Jan - Mar ‘23 period.

Vodafone Idea dividend: Vodafone Idea did not declare any dividend during the quarter.

Vodafone Idea net losses: Vodafone Idea reported narrowing of net losses to Rs 6,418.9 crores for the Jan - Mar ‘23 period from a loss of Rs 6,561.3 crores in the previous year.

A fall in finance costs can be attributed as a key reason for the narrowing of losses.

This is not investment advice. Investments in the securities market are subject to market risk, read all the related documents carefully before investing. Past performance is not indicative of future returns.