- 16 Aug 2023
- ICICI Securities
VODAFONE IDEA: OUTLOOK REMAINS GLOOMY
IDEA - 7 Change: 0.14 (1.94 %)News: Vodafone Idea’s (VIL) Q1FY24 performance was weak with continued churn. Reported revenues were up 1.1% QoQ to Rs 10,655 crore. ARPU was up 2.9% QoQ to Rs 139. The subscriber base decline, however, at ~4.5 million (vs. 2.7 mn decline in Q4), remain elevated with monthly churn rate at 3.9%. Reported EBITDA margins was down 100 bps QoQ to 39%. The reported loss stood at Rs 7837 crore.
Views: VIL remains the weakest private telco. The need for capitalisation is urgent mainly due to its upcoming debt repayment requirement, lagging spends on network and continued relative market share loss. The delay in 5G launch has led to elevated churn in high ARPU and postpaid customer. We highlight that recent government relief measures (including moratorium conversion of interest on AGR dues) has not meaningfully altered future growth outlook which remains gloomy.
Impact: Negative