Buyer is leaving Vodafone Idea Ltd. store. in Mumbai, India.
Photographer: Dhiraj Singh / Bloomberg
Photographer: Dhiraj Singh / Bloomberg
Vodafone Idea Limited, India 3 wireless phone operator, suffered a 10th straight quarter loss, hurt by the lack of tariff hiking and stiff competition in the region.
The company’s losses fell to 45.3 billion rupees ($ 623 million) for the quarter through December, compared to a 64.4 billion-rupee loss in the same period a year earlier, the company said in an exchange file Saturday. Moderate analyst estimates predict a loss of 58.8 billion rupees. Revenue fell 1.6% to 108.9 billion rupees.
Key views
- The earnings reinforce the urgent need for another round of mobile tariff increases as well as fundraising to boost the balance sheet of the debt-free wireless carrier.
- There were last tariffs built in December 2019. A price war is expected to cut, spurred by the entry of Mukesh Ambani Jio Infocomm Ltd. may be trusted. in 2016, finally discounting.
- A joint venture between Vodafone India and billionaire Kumar Mangalam Birla, which has not reported annual profits since 2017, has announced plans to increase 250 billion rupees. The money could help the company win airwaves in a spectrum auction next month.
- Vodafone Idea is also the worst carrier of 2019 a court order requiring Indian wireless operators to pay billions of dollars to the government in back taxes. Birla warned in December 2019 that the campaign went bankrupt without tax relief. The court subsequently allowed the payment to be falling over 10 years.
- Among the largest Indian wireless operators, Vodafone Idea is the weakest financially. Reliance acquired Jio, the largest operator in the country $ 20 billion from global investors last year and Bharti Airtel Limited was recently posted the highest profit since 2016.
Market Response
- Vodafone Idea Shares rose almost 12% in the December quarter and has advanced about 17% this year, outperforming the BSE Sensex S&P benchmark.
- Quarterly earnings were announced on Saturday.
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- Vodafone Idea said its financial performance has affected its ability to generate cash flow and is “causing substantial uncertainty that casts serious doubt on the company’s ability” to make those payments.
- Total number of registrants rose slightly to 109.7 million from 106.1 million in the previous quarter.
- The company’s board has approved a construction plan up to 250 billion rupees through a combination of debt and equity, depending on the seed. Active talks are ongoing with potential investors, the filing said.
- It aims to save 40 billion rupees annually by December 2021.
- Average mobile revenue per user was 121 rupees for Q3 FY21: filing
- Net debt was 1.17 trillion rupees.
- NOTE: Vodafone Opinion Court of India petitions to charge Telecom $ 8B request