VIL’s performance was a mixed bag, ICICI Direct

VIL’s performance was a mixed bag. While the residual tariff hike partial pass through was seen, margins were lower QoQ.

• Reported revenues were up 6.6% QoQ to | 10,410 crore, as ARPU grew ~3.2% QoQ to | 128, tad higher than 126, expected. The subscriber base declined at ~3.4 million (similar to 3.4 mn in Q4), with churn rate at 3.5%. 4G sub base saw addition of merely 0.9 mn QoQ to 119 million.
• Reported EBITDA margins was down 529 bps QoQ to 40.1%. On adjusted basis, margins were down 380 bps owing to high marketing costs and one-off post settlement with tower co. On ex- Ind AS basis, EBITDA was at | 2110 crore, compared to | 1970 crore in Q4FY22 (on adjusted basis), aided by tariff hike pass through.
• Reported loss was at | 7297 crore.

Key triggers for future price performance

• Substantial fundraise to meet capital spends to expand 4G network coverage, launch 5G and stay competitive.
• Improvement in subscriber churn and 4G subscriber metrics.

For report, https://www.communicationstoday.co.in/result-update-vodafone-idea/

CT Bureau