Vodafone Idea Limited (Vi) has announced the financial results for quarter ended December 31, 2021. As per the press release, the revenue for the quarter stood at Rs 97.2 billion, witnessing a quarter-on-quarter (QoQ) improvement of 3.3 per cent. The growth observed by the operator was mainly on account of several tariff interventions including the recent tariff hikes taken by the operators in November 2021.
On a reported basis, EBITDA for the quarter stood at Rs 38.2 billion. EBITDA excluding Ind AS 116 impact improved to Rs 16.2 billion, compared to Rs 14.1 billion in Q2 FY’22 (post adjustment for one-off of Rs 1.5 billion in Q2), aided by improvement in revenue and higher savings on account of cost optimisation exercise, which is partially offset by higher marketing expenses. Capex spend for Q3 FY’22 is Rs 10.5 billion in comparison to Rs 13.0 billion in Q2 FY’22.
Meanwhile, the total gross debt (excluding lease liabilities and including interest accrued but not due) as of December 31, 2021 stood at Rs 1,989.8 billion, comprising of deferred spectrum payment obligations of Rs 1,113.0 billion, adjusted gross revenue (AGR) liability of Rs 646.2 billion. This is mainly attributed to the government and debt from banks and financial institutions of Rs 230.6 billion. The cash and cash equivalents reported by the operator stood at Rs 15.0 billion and net debt stood at Rs 1,974.8 billion.
The telco’s churn (the percentage of users leaving its network) rose to 3.4 per cent from 2.9 per cent, losing a net 5.8 million users compared to 2.4 million in the second quarter (Q2) period. Its 4G subscriber base, on the other hand, rose by 0.8 million, with the overall 4G base now at 117 million. Data usage per user, however, fell 5.4 per cent sequentially to 14 GB in the October-December period. The telco ended the quarter with 247.2 million users. Quarterly operating margins narrowed to 39.3 per cent from 41.1 per cent in the previous quarter, largely triggered by the rise in marketing expenses after the government announced the telecom relief package.
Commenting on the financial report, Ravinder Takkar, MD and CEO, Vi, said, “We are pleased to announce second consecutive quarter of revenue growth driven by several tariff interventions taken in last few months. While the overall subscriber base has declined as a result of the tariff interventions, the 4G subscriber base remained resilient on the back of superior data and voice experience offered by Vi GIGAnet. We remain focused on executing our strategy to improve our competitive position and win in the marketplace. Separately, we have opted for upfront conversion of interest arising from deferment of spectrum and AGR dues into equity.”
