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Vodafone Idea Quarterly Results: Vodafone Idea Q4 Earnings, News & More

Vodafone Idea Quarterly Results: Vodafone Idea Q4 Earnings, News & More

Last updated: 01 Jul, 2021 | 02:44 pm

Vodafone Idea Quarterly Results: Vodafone Idea Q4 Earnings, News & More

Loss widens: Vodafone Idea has reported a much higher than expected loss of Rs 7,022.8 crore, as absence of interconnection usage charge (IUC) and exceptional losses weigh on the bottom-line. Analysts had earlier anticipated a net loss of around Rs 3,854 crore. 

Vodafone Idea's quarterly revenue declines: Revenue fell 11.8% on-quarter to Rs 9,607.6 crore. Analysts had pegged revenue at Rs 10,040.5 crore. From Jan 1 2021, the telecom regulator TRAI had phased out IUC, which used to be paid by a carrier for connecting calls of its subscribers to a rival network. Vodafone Idea used to earn a good share of their revenue from incoming calls from other networks. The Average revenue per user fell to a meagre Rs 107 from Rs 121 in the previous quarter. This is the lowest in the industry. 

Subscriber base: Vodafone idea’s wireless subscriber base stood at 28.37 crore in March. It gained gross subscribers in February and March this year after a gap of 15 months, according to data from the telecom regulator (released last week). The company lost 5.4 lakh gross subscribers and 9 lakh active subscribers in the fourth quarter, compared to a loss of 1.12 crore gross users and 46 lakh active users in the previous quarter. 

The road ahead for Vodafone Idea

  • Vodafone Idea is fighting for survival as it struggles to raise money to pay dues imposed by a Supreme Court decision in October on how spectrum and other fees are calculated
  • The company’s ability to continue as a going concern is dependent on its ability to raise additional funds, successful negotiations with lenders on continued support, refinancing of debts and monetization of certain assets. 
  • Vodafone Idea’s gross debt, excluding lease liabilities stood at Rs 1.80 lakh crore. This comprises deferred spectrum payment obligations of Rs 96,270 crore, AGR liability of Rs 60,960 crore and debt from banks and financial institutions of Rs 23,080 crore. Net debt grew 54% on-quarter to Rs 1.79 lakh crore. Capex spend in the fourth quarter was Rs 1,540 crore.
  • Meanwhile, the company has said that it is in active discussion with potential investors to raise funds. “We enter FY22 with a renewed focus on executing our strategy to keep our customers ahead, and our cost optimization plan remains on track to deliver targeted savings,” the company said.
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