Vodafone Idea Ltd releases financial results for Quarter ended March 31, 2019
The revenues have grown by 0.1% QoQ in the fourth quarter, says the release
Vodafone Idea Ltd has released its financial results for the Quarter ended March 31, 2019. As per the results, the sequential stabilization of revenues in Q4 benefitted from the introduction of ‘service validity vouchers’.
The revenues have grown by +0.1% QoQ in Q4 (Q3: -2.2%, Q2: -7.1%). The Q4 average daily revenue grew by 2.3% QoQ, following 11 consecutive quarters of decline.
Highlights of the release:
• Synergy realization well on track with 60% of the synergy target achieved to date. Normalised Q4 operating expenses excluding licence fee and spectrum usage charges and roaming and access charges were Rs 12.8 billion (Rs 51 billion annualised) lower than proforma operating expenses in Q1, i.e. the last quarter prior to completion of the merger.
• EBITDA increased by 57 per cent QoQ to Rs 17.9 billion. EBITDA normalised for one-offs stands at Rs 15.9 billion.
• Network integration is moving at a fast pace; customers now benefit from a unified network experience in the 10 service areas of West Bengal, Andhra Pradesh, Haryana, Madhya Pradesh, Himachal Pradesh, Assam, North East, J&K, Bihar and Punjab.
• Successfully closed India’s largest rights issue, raising Rs 250 billion of equity. The strong participation from public shareholders (ex-promoters) resulted in 1.2x subscription for the public component of the issue, demonstrating investors’ strong support.
Balesh Sharma, CEO Vodafone Idea limited, said, “We are pleased with the rapid progress we have made to deliver on our stated strategy. The initiatives we have taken since the merger are yielding positive results and we are well on track to deliver our synergy targets two years early. We remain focused on fortifying our position in key profitable districts by expanding coverage and capacity of our 4G network, targeting higher share of new 4G customers by offering an enhanced network experience, whilst also improving cash flows through cost transformation. The oversubscription of our recent rights issue, the largest in India, is a clear testament to investors’ support for our strategy.”
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