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Last Updated : Jul 01, 2020 09:34 AM IST | Source: Moneycontrol.com

Vodafone Idea share fall 5% as losses widens in Q4

The company is planning to monetise its 11.15 percent stake in Indus Towers on completion of its merger with Bharti Infratel.

 
 
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Vodafone Idea share price shed 5 percent in early trade on July 1 after the company reported consolidated loss at Rs 11,643.5 crore in the quarter ended March 2020 versus a loss of Rs 6,438.8 crore in December 2019.

Revenue of the company was up 6 percent at Rs 11,754.2 crore versus Rs 11,089.4 crore in the previous quarter.

The subscriber base declined to 291 million in Q4 FY20 from 304 million in Q3 FY20.

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Subscriber churn remained stable in Q4 FY20 at 3.3 percent. ARPU for Q4 improved to Rs 121 versus Rs 109 in Q3 FY20, driven by the prepaid tariff hike effective from December 2019.

The merger of Indus Towers and Bharti Infratel has received approval for FDI. The long stop date on the original agreement has been extended to August 31, 2020. Vodafone Idea plans to monetize its 11.15 percent stake in Indus on completion of the Indus-Infratel merger.

According to Credit Suisse, there was a beat on revenue & EBITDA in Q4. The 6 percent QoQ revenue growth on the back of 11 percent QoQ growth in ARPU. However, revenue growth partly offset by 3.3 percent QoQ decline in average subscribers.

Its 3.8 percent QoQ decline in opex led to 28 percent QoQ growth in EBITDA. The company continues to trail Bharti Airtel on growth & subscriber metrics.

The company’s net debt was (Ex-AGR Dues) up 9 percent QoQ as cash balance rapidly depletes. The long-term viability continues to remain under a cloud, while it may find challenging to service AGR dues if payment tenure is short, reported CNBC-TV18.

The company is planning to monetise its 11.15 percent stake in Indus Towers on completion of its merger with Bharti Infratel.

The Indus-Infratel merger has received foreign direct investment (FDI) approval and is slated to be completed by August 31.

Vodafone Idea also said its ability to continue as going concern was dependent on a positive outcome in the adjusted gross revenue (AGR) case.

Vodafone Idea said that it had already made payments of Rs 68.5 billion (Rs 6,850 crore) in three instalments during the quarter ended March 31, 2020 towards AGR dues.

The Supreme Court will next hear the AGR case in the third week of July.

At 09:22 hrs, Vodafone Idea Limited was quoting at Rs 10.48, down Rs 0.14, or 1.32 percent on the BSE.
First Published on Jul 1, 2020 09:34 am
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