Vodafone Idea Q3 Results FY22
Vodafone Idea Ltd. published its third quarterly results for the financial year 2021-22 on 21st January 2022. The results showed a steep increase in net loss at Rs.7,231 crores. This is a 59.5% year-on-year (YoY) jump in the net loss which was recorded at Rs 4,532 crores in Q3 FY21. It is a drop sequentially too – the loss had come in at Rs7,132 crores in the last quarter.
The revenue from operations also suffered the same fate as it fell 11% YoY to stand at Rs 9,717 crores (In Q3 FY21, the revenue was reported at Rs10,894 crores). This might be attributed to the fact that the company’s subscriber base declined to 24.72 crores compared to 25 crores in Q2 FY22.
On a sequential basis, however, the revenue increased 3.3% due to tariff hikes, resilient 4G subscriber base and tariff interventions from 25th November 2021. The 4G subscriber base saw a fresh addition of 8 lakh customers in the quarter under review taking the total base to 11.7 crores.
EBITDA grew 14.9% sequentially and amounted to Rs 1,620 compared to Rs.1,410 crore in Q2 FY22. The Average Revenue Per User (ARPU) also showed growth on a sequential basis as it jumped 5.2% quarter-on-quarter (QoQ) to Rs 115 compared to Rs 109 in Q2 FY22.
In the balance sheet, the gross debt amounted to Rs1.98 lakh crores as on 31st December 2021. This comprised of Rs 1.11 lakh crore debt for deferred spectrum payment, Rs 64,620 crore for AGR liability and Rs 23,060 crores from financial institutions. Cash and cash equivalents amounted to Rs 1,500 crores and the net debt was Rs 1.97 lakh crore. Note that as of January 2022, Vodafone Idea converted a majority of their debt towards spectrum fees and AGR dues to equity for the Government!
When the markets closed on Friday, 21st January 2022, Vodafone Idea’s shares closed at Rs.11.90 per share after an intraday fall of 1.24%. Notably, the last dividend declaration was on 28th April 2016 when the company had made some profits and declared a final dividend of Rs.0.60 per share.
Hits
- 3.3% sequential growth in the consolidated revenue from operations
- 8 lakh new customers added to the 4G subscriber base
- 14.9% sequential jump in the EBITDA, from Rs.14.1 billion to Rs.16.2 billion
- 5.2% QoQ growth in ARPU, from Rs.109 to Rs.115
Misses
- 59.9% YoY increase in the net loss which widened from Rs.4532 crores in Q3FY21 to Rs.7230 crores in Q3FY22
- 11% YoY fall in the consolidated revenue from operations, from Rs.10,894 crores to Rs.9717 crores
- Decline in the subscriber base within the quarter, from 25 crores to 24.72 crores
Other things to know
- Subscriber churn jumped 50 basis points sequentially to stand at 3.4%
- 4G subscribers’ average data usage was recorded at 14GB per month compared to 12GB/month last year
- Against the annual opex savings target, Vodafone Idea managed to achieve 90% of the said target in the quarter under review
- The company expanded its 4G network by adding about 4000 4G FDD sites. This was primarily done through reframing the 2G and 3G spectrums
- Vodafone Idea recently converted their AGR dues into equity that makes the Government of India a 35% shareholder in the company.
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