Vodafone Idea reported its Q2 FY25 results, highlighting modest revenue growth aided by tariff hikes and a significant reduction in net losses. Although the company’s growth remains lower than its peers, strategic initiatives such as 4G expansion and network improvements signal potential for future recovery.
Key Financial Highlights:
- Revenue from Operations:
- YoY: Service revenue increased by 1.9% to ₹10,918.1 crore, up from ₹10,714.6 crore in Q2 FY24.
- QoQ: Revenue grew 4.1% from ₹10,486.9 crore in Q1 FY25, driven by enhanced customer engagement and network upgrades.
- Net Loss:
- YoY: Net loss narrowed to ₹7,175.9 crore, a 17.9% improvement from ₹8,737.9 crore in Q2 FY24.
- QoQ: Sequentially, the net loss decreased by 11.5%, down from ₹6,432.1 crore in Q1 FY25, reflecting enhanced cost management and operational efficiency.
Operational Highlights
- 4G Expansion: Post capital raise, Vodafone Idea accelerated its 4G network expansion, boosting 4G data capacity by 14% and increasing population coverage by 22 million. This resulted in an 18% improvement in 4G speeds.
- Capex Investment: The company secured capex deals worth USD 3.6 billion with Nokia, Ericsson, and Samsung to supply network equipment over the next three years. Vodafone Idea plans a capex investment of ₹500 to ₹550 billion for further network expansion.
- Tariff Hikes: Recent tariff adjustments positively impacted ARPUs and revenue, with the full benefits expected in the coming quarters.
CEO Commentary
Akshaya Moondra, CEO of Vodafone Idea, emphasized the impact of tariff hikes and highlighted the need for further tariff rationalization to achieve sustainable growth in the industry. The company remains focused on securing additional funding to support its ambitious network expansion plans.
TOPICS:
Vodafone Idea