In the latest financial report, Vodafone Idea has shown a noteworthy QoQ improvement of 1.2 percent in revenue for the April-June quarter of 2023. The company’s revenue stood at Rs 106.6 billion, attributed to a better subscriber mix and the addition of 4G subscribers.
The Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter amounted to Rs. 41.6 billion, with EBITDA margins at 39 percent. The margin performance was influenced by higher network expenses and customer acquisition costs, which were partially offset by reduced roaming and access charges.
Vodafone Idea’s capital expenditure (Capex) for the quarter reached Rs. 4.5 billion. The company’s gross debt, excluding lease liabilities, and including interest accrued but not yet due, as of June 30, 2023, was Rs. 2,117.6 billion. This includes deferred spectrum payment obligations of Rs. 1,337.4 billion and Adjusted Gross Revenue (AGR) liability of Rs. 668.6 billion owed to the Government. Debt from banks and financial institutions amounted to Rs. 95 billion, while Optionally Convertible Debentures accounted for Rs. 16.6 billion.
With cash and cash equivalents of Rs. 2.5 billion, Vodafone Idea’s net debt stood at Rs. 2,115.1 billion. During the past year, the debt from banks and financial institutions has decreased by Rs. 57 billion, with a substantial reduction of Rs. 152 billion occurring in Q1FY23.
Operational Highlights
Vodafone Idea’s strategic focus on investments continues, with a priority on 17 key circles. The company is expanding its broadband network coverage and capacity by deploying new sites, upgrading the core and transmission network, and repurposing 2G/3G spectrum for 4G.
As of June 30, 2023, Vodafone Idea’s broadband site count reached around 442,100, with approximately 1,000 new 4G sites added during the April-June quarter. The company has deployed around 74,800 TDD sites, in addition to 13,800 Massive MIMO sites and 13,100 small cells.
Vodafone Idea is expanding its LTE 900 presence across 14 circles, using dynamic spectrum refarming to enhance the customer experience. The company’s 4G network covers over 1 billion Indians, a significant milestone in terms of population coverage.
Preparations for 5G Rollout
Vodafone Idea is in discussions with network vendors to finalize its 5G rollout strategy. The company has already completed device testing with major Original Equipment Manufacturers (OEMs) on its 5G network.
Consistent Quality and Subscriber Growth
Vodafone Idea maintains the highest rated voice quality in India according to data from the TRAI MyCall App. This distinction has been held for 28 out of 32 months between November 2020 and June 2023.
The company’s 4G subscriber base continues to grow for the eighth consecutive quarter, reaching 122.9 million as of June 30, 2023. However, the overall subscriber base has decreased to 221.4 million from 225.9 million in Q4FY23.
Vodafone Idea’s Average Revenue Per User (ARPU) improved to Rs. 139, marking a 2.9 percent QoQ increase compared to Rs. 135 in Q4FY23. This improvement was driven by the migration of subscribers to higher ARPU plans. The company also reported high data usage per broadband customer, averaging around 15.7 GB per month, with a 3.5 percent QoQ growth in total data traffic for the quarter.
Strong Spectrum Portfolio and Network Reach
With a total of 8,005.2 MHz of spectrum across various frequency bands, Vodafone Idea possesses a formidable resource for technology deployment. The majority of this spectrum, amounting to 7,975.2 MHz, is liberalized and adaptable for any technology.
The company’s presence spans over 183,600 unique locations, boasting almost 442,100 broadband (3G+4G) sites. The 4G network covers more than 1 billion Indians as of June 30, 2023. Vodafone Idea also maintains a substantial optical fiber cable (OFC) portfolio, encompassing over 293,100 km of OFC, including self-built, Indefeasible Right of Use (IRU) OFC, and excluding overlapping routes.
