GulfHindi English Desk: Vodafone Idea, the telecom service provider, is facing challenges that are deeply impacting its business. This struggle is crucial for investment, liquidity, and network expansion.
While Bharti Airtel and Reliance Jio have been expanding their 5G coverage since October last year, Vodafone Idea has been delaying the announcement of its 5G launch timeline. The company is also losing customers consistently, and the absence of significant tariff increases is affecting its average revenue per user (ARPU). In the fourth quarter of 2022-23, the company witnessed a 0.8% decline in sequential revenue growth.
However, due to lower interest expenses on debt restructuring, the net loss has reduced to Rs. 6,419 crores compared to Rs. 7,990 crores in the previous quarter of December 2022. Analysts compiled by Reuters-Refinitiv estimate that the company will report a net loss of Rs. 7,178.8 crores in the quarter ending June 2023.
According to a report by Emkay released after the results of the March 2023 quarter, the company’s existence will become increasingly challenging after 2025-26 due to a significant funding gap and the possible need for rapid tariff increases.
Summary:
👉Vodafone Idea lags behind competitors in 5G expansion.
👉The company is losing customers continuously.
👉There was a 0.8% sequential decline in revenue growth in Q4 2022-23.
👉Net loss reduced to Rs. 6,419 crores in the fourth quarter.
👉The company may require additional funding after 2025-26.
en.gulfhindi.com News Summary
👉Vodafone Idea is facing challenges that are impacting its business, including investment, liquidity, and network expansion.
👉While Bharti Airtel and Reliance Jio have been expanding their 5G coverage since October last year, Vodafone Idea has been delaying the announcement of its 5G launch timeline.
👉The company is losing customers and the absence of significant tariff hikes is affecting its average revenue per user (ARPU).
👉In the fourth quarter of 2022-23, the company saw a decline of 0.8% in its sequential revenue growth.
👉However, the net loss has decreased due to lower interest costs on debt and stands at Rs. 6,419 crore, compared to Rs. 7,990 crore in the previous quarter.
👉Analysts estimated that the company will report a net loss of Rs. 7,178.8 crore in the quarter ending June 2023.
👉The Emkay report released after the results of the March 2023 quarter suggests that the company’s existence will become increasingly challenging after 2025-26 due to a significant funding gap and the need for rapid tariff hikes.
👉In summary, the situation for Vodafone Idea includes lagging behind in 5G expansion, losing customers, a decline in revenue growth, a decrease in net loss, and the potential need for more funding in the future.
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