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Last Updated : Aug 06, 2020 05:04 PM IST | Source: Moneycontrol.com

Vodafone Idea reports Q1 loss of Rs 25,460.20 crore; revenue down 5% YoY

Consolidated revenue for the priod stood at Rs 10,659.3 crore, down 5.42 percent from Rs 11,269.9 crore reported in Q1FY20.

Vodafone Idea (Representative Image)
Vodafone Idea (Representative Image)
 
 
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Telecom player Vodafone Idea, on August 6, reported a consolidated net loss of Rs 25,460.20 crore for the quarter ended June 30, 2020, against a loss of Rs 4,873.90 crore for the corresponding quarter a year ago.

Consolidated revenue for the period stood at Rs 10,659.3 crore, down 5.42 percent from Rs 11,269.9 crore reported in Q1FY20.

Sequentially, the company's revenue for the quarter declined by 9.3 percent, impacted by the nationwide lockdown

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A CNBC-TV18 poll had estimated Vodafone Idea's Q1 revenue to the tune of Rs 10,910 crore.

EBITDA came at Rs 4,098.4 crore while EBITDA margin stood at 38.5 percent. CNBC-TV18 poll had estimated EBITDA at Rs 3,650 crore and EBITDA margin at 33.5 percent.

The company said the merger of Indus Towers and Bharti Infratel has received FDI approval.

"The long stop date on the original agreement has been extended to August 31, 2020. We have the option to monetize our 11.15 percent stake in Indus on completion of the Indus-Infratel merger," Vodafone Idea said.

Gross debt (excluding lease liabilities) as of June 30, 2020, was Rs 1,18,940 crore, including deferred spectrum payment obligations due to the Government of Rs 92,270 crore, said the company.

Cash and cash equivalents were Rs 3,450 crore and net debt stood at Rs 1,15,500 crore (against Rs 1,12,520 crore in Q4FY20), the company said.

Capex spend in Q1FY21 of Rs 600 crore was lower compared to Rs 1,820 crore in Q4FY20, as the rollout in Q1 was impacted by COVID-19 with disruptions to equipment supply and logistics following the nationwide lockdown, said the company.

The company's subscriber churn reduced to an all-time low of 2 percent (3.3 percent in Q4FY20), as net disconnections were lower during the quarter.

However, the gross additions were severely impacted by the closure of retail stores during the nationwide lockdown resulting in subscriber base declined to 279.8 million in Q1FY21 from 291.1 million in Q4FY20.

ARPU for Q1FY21 was Rs 114 against Rs 121 in Q4FY20

At the end of the quarter, the 4G subscriber base was 10.46 crore. Total data volumes grew by 10.6 percent (40.4 percent YoY), to 4,523 billion MB compared to the last quarter, is the highest growth in the last 6 quarters, the company claimed.

Total minutes on the network declined by 6 percent during the quarter.

Commenting on the quarterly earnings, Ravinder Takkar, MD & CEO, Vodafone Idea said: “Q1FY21 was a challenging quarter as availability of recharges due to store closure and ability of customers to recharge on account of the economic slowdown were impacted."

"4G coverage and capacity expansion remains a priority for us to further improve our customers’ experience and we continue to lead the league tables on 4G data download speeds across several states, metros and large cities."

"We continued to make progress on our strategy with integration largely complete, enabling us to realise cost-synergies well ahead of our initial targets. We have launched a new cost optimisation initiative that will drive further cost-savings. We also continue to actively engage with the government seeking a comprehensive relief package for the industry, which faces critical challenges.”
First Published on Aug 6, 2020 04:53 pm
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