Earnings Outlook
Vodafone Idea to post loss yet again as subscribers dwindle
This story was originally published at 15:45 IST on 12 November 2024
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By Ayushman Mishra
MUMBAI – Vodafone Idea Ltd. is expected to report a net loss yet again as the telecom service provider likely lost more subscribers in the September quarter, analysts said.
The company's consolidated net loss is seen in the range of INR 63.95 billion to INR 69.98 billion, according to the estimates from three brokerages. The company had reported a consolidated net loss of INR 64.32 billion in Apr-Jun and a consolidated net loss of INR 87.38 billion in the September quarter a year ago.
Nuvama Wealth Management expects Vodafone Idea to post a consolidated net loss of INR 63.95 billion, while Motilal Oswal Financial Services and Kotak Institutional Equities have forecast a net loss of INR 69.98 billion and INR 67.42 billion, respectively.
The company is expected to report a consolidated revenue in the range of INR 109.98 billion to INR 115.18 billion. Nuvama Wealth's forecast of INR 115.18 billion is the highest amongst the three brokerages, and Motilal Oswal's projection of INR 109.98 billion is the lowest.
Having lost 2.5 million subscribers in the June quarter, Kotak Equities said that Vodafone Idea likely lost 2 million more subscribers during the September quarter, pushing its total customer base down to 208.1 million. However, Motilal Oswal said the company likely lost 4 million subscribers, with peers Bharti Airtel Ltd. and Reliance Jio Ltd. gaining market share at Vodafone Idea's expense. The company is expected to roll out fourth generation and fifth generation networks in Oct-Mar, the brokerage added.
The company's earnings before interest, taxes, depreciation, and amortisation for the September quarter are seen in the range of INR 44.32 billion to INR 51.07 billion. The EBITDA margin is seen expanding 430 basis points sequentially according to Nuvama Wealth, while Motilal Oswal expects it to expand by 30 bps sequentially. The company's reported EBITDA is likely to increase 10-11% sequentially on the back of higher average revenue per user, Kotak Equities said.
The company is scheduled to announce its September quarter earnings on Wednesday. At 1440 IST, shares of Vodafone Idea were down 1.3% at INR 7.73 on the National Stock Exchange. End
IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT
Edited by Ashish Shirke
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