Telecom operator Vodafone Idea (VIL) posted consolidated losses of Rs 4881.9 crore compared to Rs 5004 crore on a sequential basis for the fourth quarter of FY19 which ended in March. Vodafone's revenue marginally missed street estimates, growing from Rs 11764 crore to Rs 11775 in the same period. The latest quarter's figures can't be compared with those of March 2018, as the merger of Idea Cellular and Vodafone India came into effect from August 31, 2018.
Analysts expected revenues expected to grow 1.5 per cent and narrowing of losses up to Rs 4200 crore was estimated. The average revenue per user (ARPU) was in line with street estimates growing 16.3 per cent to Rs 104 in the quarter following benefits from monthly recharge offers. Q3 ARPU stood at Rs 89. The efforts resulted in a reduction of the subscriber base by 53.2 million to 334.1 million.
Q4 average daily revenue grew by 2.3 per cent quarter-on-quarter (QoQ), following 11 consecutive quarters of decline, said the company. Ebitda stood at Rs 1785.3 crore for Q$ with Ebitda margin rising 15.2 per cent compared to 9.7 in the previous quarter.
Total operating expenses for the quarter declined sequentially due to the realisation of merger synergies. Q4 underlying operating expenses of Rs. 7480 crore (excluding licence fees & spectrum usage charges and roaming & access charges) declined by Rs 1280 crore compared to Q1 after adjusting for certain one-offs of Rs Rs. 200 crore, inflation driven cost increases and incremental network rollout.
"We are pleased with the rapid progress we have made to deliver on our stated strategy. The initiatives we have taken since the merger are yielding positive results and we are well on track to deliver our synergy targets two years early," said Balesh Sharma, CEO VIL.
Bharti Airtel had also performed well on the ARPU front in the fourth quarter as the figure improved 20 per cent sequentially while rival Reliance Jio’s ARPU declined 3 per cent during the same period. Airtel’s ARPU in Q3 had fallen 15.50 per cent year-on-year (YoY) to Rs 104 from Rs 123 in Q3FY18. Analysts had estimated Q4 to lead the way for tariff stabilisation in the telecom industry.
Airtel also recorded a 4.1 per cent jump in domestic wireless revenues, partly by weaning off low revenue customers. It continued to add 4G customers, thereby narrowing the gap with Reliance Jio in terms of revenues from this segment.
VIL said that the strong participation from public shareholders (ex-promoters) resulted in 1.2x subscription for the public component of the Rs 25,000 crore rights issue, which concluded last month, demonstrating investors’ strong support for the strategy.
The merger of Bharti Infratel and Indus Towers has received approval from the Competition Commission India, the Securities and Exchange Board of India, shareholders and creditors. An application for sanction of the scheme has been filed with the NCLT and the matter is listed for final hearing. Vodafone Idea has an option to sell its 11.15 per cent stake in Indus, which has an implied value of Rs Rs. 6160 crore. VIL is also exploring options to monetize over 158,000 Kilometers of intra-city and inter-city fibre.
VIL's gross debt as of 31st march is Rs 125,940 crore, including deferred spectrum payment obligations due to the Government of Rs. 90,680 crore.