Vodafone Idea has reduced its losses to ₹6,432 crore for the first quarter ending June 2024. This marks an improvement compared to a loss of ₹7,675 crore in the previous quarter (March 2024) and ₹7,840 crore in the same quarter last year.
Marginal Decline in Revenue
The company’s revenue from operations slightly decreased by 1.38% year-on-year, totaling ₹10,508 crore, down from ₹10,655 crore in the same period last year.
Vodafone Idea reported an EBITDA of ₹4,205 crore for this quarter, compared to ₹4,336 crore in the previous year’s same quarter. The EBITDA margin also narrowed by 90 basis points, settling at 40%.
Growth in ARPU
The Average Revenue Per User (ARPU) for the quarter rose to ₹146 from ₹139 a year ago, reflecting a 4.5% year-on-year growth. This increase was primarily driven by changes in entry-level plans and subscriber upgrades.
Capital Expenditure and Funding Plans
CEO Akshaya Moondra highlighted that the company’s current capital expenses are being funded through equity. Vodafone Idea is in talks with lenders to secure debt funding for its network expansion, with a planned capital expenditure of ₹50,000 to ₹55,000 crore over the next three years.
4G Subscriber Base Expansion
Vodafone Idea’s 4G subscriber base has grown for the twelfth consecutive quarter, reaching 126.7 million at the end of Q1 FY25. The company added 3.8 million new 4G subscribers over the past year, bringing the total subscriber base to 210.1 million.
Financial Position and Obligations
As of June 2024, the company’s debt from banks and financial institutions stood at ₹4,650 crore, with optionally convertible debentures at ₹160 crore. The cash and bank balance was ₹18,150 crore at the end of the June quarter.
Government Payment Obligations
Vodafone Idea’s payment obligations to the government totaled ₹2.09 lakh crore as of June 30, 2024. This includes deferred spectrum payment obligations of ₹1.39 lakh crore and an AGR liability of ₹70,320 crore.
On Monday, Vodafone Idea shares closed slightly lower, down 0.5%, at ₹16.02 on the NSE.
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