5 Key Takeaways from Vodafone Idea Q4 Earnings Report

Vodafone Idea Limited has been become the biggest telecom operator by subscriber base in the industry after the merger of the second place and third place telcos, Vodafone India and Idea Cellular and everyone has been eying the performance of the telco. However, with its focused move towards retaining paying customers, the telco has been rapidly losing subscribers. In February, the telco had lost 5.8 million subscribers. Now the telecom operator has released its Q4 earnings report highlighting the significant feats that it has accomplished in the last quarter if FY19 and giving us some insights into the current financials of the company. It is worth noting that the fourth quarter was also the time when Vodafone Idea completed India’s largest rights issue.

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Stabilisation in Revenue and Increased ARPU

The telecom operator firstly noted that it was on the path of achieving stabilisation of revenue in the Q4 and it came majorly as a result of ‘service validity vouchers’. The earnings report highlighted that Revenues grew by +0.1% QoQ in Q4 (Q3: -2.2%, Q2: -7.1%). Q4 average daily revenue increased by 2.3% QoQ after 11 consecutive quarters of decline. Vodafone Idea also noted that its strategic initiatives to better the ARPU (Average Revenue Per User) also have started to come to fruition as the average daily revenue (ADR) for the quarter grew 2.3% QoQ after witnessing successive declines for the 11 prior quarters. Also, the revenue for the quarter was Rs 117.8 billion, up 0.1% QoQ, lower than the ADR growth due to fewer days in Q4FY19.