The net loss spreads as revenue falls


Vodafone Idea’s net loss increased in the quarter at the end of June due to falling revenues and other revenues, even when total expenditures increased.

The net loss for the quarter from April to June 2021 was 7,319.1 kroner, according to the submitted exchange. This can be compared to an estimate of a net loss of consensus of $ 6,614.6 million according to analysts monitored by Bloomberg. In the previous quarter, Vodafone Idea reported a net loss of HRK 7,022.8 million.

Revenues fell by 4.7% month on month to HRK 9,152.3 million. Analysts tied the revenue to 9,592.1 kroner. Other revenues fell by 16.7% to HRK 33.5 million.

Fewer additions due to Covid-related blockades, free extensions of validity for low-cost users, and a slowdown in economic activity affected revenue growth in the first quarter.

Highlights (comparison between quarters)

  • Operating profit fell 15.9% to HRK 3,707.7 million.

  • The margin decreased to 40.5% from 45.9%.

  • Average revenue per user – the amount an operator earns per subscriber per month – fell from Rs 104 to Rs 104.

  • Total expenses increased by 6.2% to HRK 16,682.8 million.

Earlier this month, Kumar Mangalam Birla resigned as non-executive director and non-executive president of Vodafone Idea. With the survival of the carrier in doubt because of his obligations, Birla wrote on June 7, the government sought support for Vodafone Idea and offered to sell the stake to any government or private investor.

Gross debt of Vodafone Idea (excluding lease liabilities) as at 30 June amounted to HRK 1.91,590 million, including deferred payment obligations under the spectrum in the amount of HRK 1.06.010 million and liabilities under annual revenue in the amount of RS. HRK 62,180 million. Debt of banks and financial institutions amounts to Rs. 23,400 kuna.

The company’s net debt amounted to HRK 1.90.670 million, which is 5.95% more than in the previous quarter and 65.1% more than a year earlier.

The company’s capital expenditures in the first quarter amounted to HRK 940 million compared to HRK 1,540 million in the previous three months.

Vodafone Idea’s wireless subscriber base has been 25.54 crore since June, as it has lost 1.23 crore of subscribers since March. The 4G subscriber base was 11.29 crore, a decrease of 10 lakhs during the quarter. Its amount of data sequentially increased by 13.2%, caused by higher data demand during quarantine.

Auditors have identified material uncertainty that casts doubt on the company’s ability to continue as a going concern. “The company’s financial results have affected its ability to generate the cash flow it needs to settle / refinance liabilities and guarantees upon their maturity, which together with its financial condition results in material uncertainty that casts significant doubt on the company’s ability to make payments and continue as a permanent care, ”the auditor’s report that monitors earnings states.


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