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 preferential issues to Nokia and Ericsson, totaling over INR 240 billion in equity raised between March and July 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.

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

• Launched new prepaid and postpaid plans, innovative digital services, and expanded international roaming offerings.

Financial highlights

• Quarterly revenue reached INR 105.1 billion.

• EBITDA (excluding Ind AS 116) improved by 4.2% year-over-year to INR 21 billion, with EBITDA margin at 20%.

• Reported EBITDA was INR 42 billion, up from INR 41.6 billion in Q1 FY24.

• CapEx for the quarter was INR 7.6 billion, with spend expected to rise as ordered equipment is delivered.

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

• Subscriber churn rate expected to materially decline as network investments take effect.