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Vodafone Idea net loss widens in Q4FY24; ARPU up 7.6 pc at Rs 146

Vodafone Idea net loss widens in Q4FY24; ARPU up 7.6 pc at Rs 146

| @indiablooms | 16 May 2024, 11:44 pm

New Delhi: Vodafone Idea, a leading private sector telecom company with a government stake of 32.2%, recorded a loss of Rs 76,746 million (Rs 7,674.6 crore) in the fourth quarter of the financial year 2023-24, compared to Rs 64,189 million (Rs 6,418.9 crore) in the same period of 2022-23.

However, there was a marginal growth of 0.7% in revenue from operations.

According to the company's regulatory filing with the stock exchanges, revenue for the quarter reached Rs. 106.1 billion, marking a year-on-year improvement of 0.7%.

This growth was attributed to enhancements in subscriber mix, additions of 4G subscribers, and adjustments in entry-level plans.

Improvements in operational metrics such as Average Revenue Per User (ARPU), subscriber base expansion, and network expansion are fostering hopes for the mobile operator's revival.

As of March 31, 2024, the company's total debt from banks and financial institutions was Rs. 40.4 billion, with Optionally Convertible Debentures amounting to Rs. 1.6 billion.

The debt from banks and financial institutions decreased by Rs. 70.9 billion over the past year (from Rs. 111.3 billion in Q4FY23). The company reported a cash and bank balance of Rs. 1.7 billion as of March 31, 2024.

Additionally, its payment obligations to the government amounted to Rs. 2,034.3 billion, including deferred spectrum payment obligations of Rs. 1,331.1 billion and AGR liability of Rs. 703.2 billion.

The company's investment strategy focuses on its 17 priority circles to expand its high-speed broadband network coverage and capacity.

This includes rolling out new 4G sites, upgrading core and transmission networks, and refarming 2G/3G spectrum to 4G. These 17 circles account for nearly 98% of the company's revenues.

The 4G subscriber base continued to grow for the eleventh consecutive quarter, reaching 126.3 million by the end of Q4FY24, compared to 122.6 million in Q4FY23, representing an addition of 3.7 million 4G subscribers over the past year. The overall subscriber base stood at 212.6 million.

ARPU improved to Rs. 146, up 7.6% year-on-year from Rs. 135 in Q4FY23, primarily due to changes in entry-level plans and subscriber upgrades. The total data traffic for the quarter witnessed a year-on-year growth of 4.3%.

“We raised Rs. 180 billion through the largest Follow up Public Offer (FPO) in India. The success of our FPO is testimony to the confidence and trust that has been reposed in us by investors as the issue was subscribed nearly 7 times,” the company said.

The company is currently engaged in talks with a consortium of banks to secure funding of up to Rs. 250 billion, along with additional non-fund-based facilities of up to Rs. 100 billion.

Following the Telecom reforms package introduced in September 2021, the company's bank exposure has decreased by approximately Rs. 346 billion.

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