Vodafone Idea (IDEA) Q1 24/25 earnings summary

Executive summary

• Completed India's largest FPO, raising INR 180 billion, with additional equity from promoters and partners, totaling over INR 240 billion in equity raised in 2024.

• Consolidated net loss for the quarter ended June 30, 2024, was Rs. 64,321 Mn, with negative net worth of Rs. 907,896 Mn.

• Standalone net loss for the same period was Rs. 64,713 Mn, with negative net worth of Rs. 903,059 Mn.

• Initiated a major CapEx cycle, targeting INR 500-550 billion over three years for 4G expansion and 5G rollout.

• 4G subscriber base grew for the 12th consecutive quarter, reaching 126.7 million as of June 30, 2024.

Financial highlights

• Quarterly revenue was INR 105.1 billion; EBITDA (ex-Ind AS 116) improved 4.2% YoY to INR 21 billion, with a margin of 20%.

• Consolidated revenue from operations for the quarter was Rs. 105,083 Mn, down slightly from Rs. 106,068 Mn in the previous quarter.

• CapEx for the quarter was INR 7.6 billion, expected to rise as new investments are executed.

• Cash and cash balance at INR 181.5 billion as of June 30, 2024.

• Basic and diluted EPS for the quarter were both negative at (1.02) for consolidated and (1.03) for standalone.

Outlook and guidance

• CapEx guidance of INR 500-550 billion over three years, with front-loaded investments in 4G coverage and initial 5G deployment.

• Management believes recent capital infusions will support ongoing negotiations with lenders, vendors, and DoT, and enable settlement of liabilities as they fall due.

• Financial statements prepared on a going concern basis due to expected operational cash flows and capital raised.

• Expecting 15% increase in data capacity and 16 million more in 4G population coverage by September 2024.

• Anticipates ARPU uplift from recent 17% blended tariff hike, with 2/3 to 3/4 of the increase expected to flow through to revenue.