Vodafone Idea (Vi) is going to release its earnings report later today. The results will be for the first quarter of the financial year 2022-2023. Vodafone Idea Limited (VIL) is expected to post an increase in the blended average revenue per user (ARPU) figure on account of the residual effect of tariff hikes implemented in late November 2021. Investors would look at whether the telco's 4G subscribers increased or not. While Vi's overall subscriber base has been declining over the last several quarters, the telco has managed to add new 4G users.
Vi investors and fans would expect the losses posted by the company to narrow QoQ and YoY basis. Whether it will happen or not will be known later today. For Q4 FY22, Vi's loss was Rs 6,563.1 crore, which was lesser than Rs 7,022.8 crore in the same quarter the previous year.
Vodafone Idea's Debt Will be in the Spotlight
Debt is another thing that will be at focus. With 5G spectrum auctions just concluded, the debt level of Vi is going to shoot up significantly. While Airtel and Jio would also be under a considerable amount of debt, both the other telcos can actually manage to pay it off with the profits they have been making. The same can't be said for Vodafone Idea, which hasn't made a single rupee since the time it came into existence.
The quarterly results of Vi would also bring in focus the average data and average voice call minutes consumption by the users. Both should increase in order to help with boosting revenues. The most sought-after figure would definitely be ARPU. Both Airtel and Jio are close to the Rs 200 ARPU figure, while Vodafone Idea still hasn't crossed the Rs 150 mark. This is the case even when Vi's plans are considerably more expensive than Jio's prepaid plans. Vi will need the help of multiple tariff hikes to cross Rs 200 ARPU levels, one of which might come later this year.
