One97 Communications (PAYTM) Q4 19/20 earnings summary

Executive summary

• FY20 consolidated operating revenue was INR 3,280.84 crore; total income reached INR 3,628.85 crore, while net loss narrowed to INR 2,942.36 crore from INR 4,217.20 crore YoY.

• Lower total expenses supported the narrower loss, partly offset by INR 304.66 crore of exceptional losses, primarily investment and goodwill impairments.

Financial highlights

• Consolidated operating revenue rose to INR 3,280.84 crore from INR 3,232.01 crore; total income was INR 3,628.85 crore versus INR 3,579.67 crore.

• Total expenses declined to INR 6,226.31 crore from INR 7,730.14 crore; employee benefits were INR 1,119.30 crore versus INR 856.22 crore, and other expenses were INR 4,883.97 crore versus INR 6,757.54 crore.

• Consolidated net loss was INR 2,942.36 crore versus INR 4,217.20 crore; loss attributable to parent owners was INR 2,842.17 crore versus INR 4,167.98 crore.

• Exceptional loss was INR 304.66 crore versus INR 82.52 crore; FY20 included INR 284.41 crore of goodwill impairment, INR 9.96 crore of associate impairment and INR 10.29 crore loss on investment sales.

• Basic and diluted EPS from continuing operations was negative INR 488.13 versus negative INR 742.17; options were excluded as anti-dilutive.

Outlook and guidance

• Management expected receivables, investments and goodwill carrying values to be recovered based on current estimates, while continuing to monitor economic conditions and COVID-19 developments.

• Management cautioned that the pandemic assessment remained ongoing because its duration and effects on subsequent periods were uncertain.