Vodafone Concept Restricted (VIL) not too long ago got here out with the outcomes for Q2 FY25. This was a end result buyers had been ready eagerly for because it mirrored the change in ARPU (common income per person) after tariff hikes, and the impact of the identical on the subscriber base. It’s protected to say, what we anticipated, turned out to be true. Whereas there was a unfavourable hit to the subscriber base, the telco did enhance on different metrics like ARPU, revenues, and broadband protection. It’s value noting that Vi secured funds from buyers earlier within the yr, and the funds are being utilized by the telco to scale the capex (capital expenditure) to enhance community efficiency.
Here is the whole lot it’s best to learn about Vi’s efficiency in Q2 FY25.
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The Good and the Dangerous for Vodafone Concept in Q2 FY25
Let’s go over the positives first. Vodafone Concept noticed its revenues going up by 4% QoQ. It is a results of tariff hike. Then, the telco’s buyer ARPU jumped by 7.8% QoQ to Rs 166 from Rs 154, a serious enchancment. Vi additionally scaled networks, leading to elevated 4G inhabitants protection (from 1047 million to 1064 million QoQ). The telco additionally elevated the full variety of broadband websites within the nation from 417,245 to 439,599 with the assistance of not too long ago raised funds.
The financial institution debt diminished majorly from Rs 46.5 billion to Rs 32.5 billion QoQ. Vi added about 42,000 4G websites in a single quarter, probably the most added by the telco in 1 / 4 in a single quarter. This has helped Vi in bettering 4G speeds for the purchasers. The telco confirmed that it deployed 900 MHz band spectrum throughout 20,500 websites, and 1800 MHz and 2100 MHz bands throughout 21,200 websites throughout the quarter. The LTE 900 MHz band is now accessible in 16 out of 17 precedence circles of the telco. It will assist with boosting indoor protection expertise for the shoppers.
There was an increase in capex throughout the quarter to Rs 13.6 billion from Rs 7.6 billion within the earlier quarter. Within the second half of FY25, the anticipated capex is Rs 80 billion, nearly 4x of what the telco spent within the first half. Together with deploying further 4G websites, the telco shut down 19,700 3G websites throughout the nation. Vi has confirmed that its 3G is now current in 8 circles solely. Additionally, the postpaid customers went up by 0.4 million customers to 24.5 million customers.
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Now let us take a look at what unsuitable for the telco throughout the quarter.
Firstly, the loss narrowed to Rs 7,184 crore. The telco additionally noticed a decline in 4G/5G customers from 126.7 million to 125.9 million QoQ. The general subscriber base dipped from 210 million to 205 million. When it got here to lively customers, the bottom declined from 188.3 million to 179.5 million, a lack of 8.8 million customers. The blended churn fee went up from 4% to 4.5%, which is signficantly excessive.
Nevertheless, one factor it’s best to keep in mind right here is that the subscriber loss accelerated as a result of implementation of tariff hikes in July 2024. This was seen throughout the sector, and Vi wasn’t the one telco to lose customers.
General, although the subscribers have gone down, the development in community efficiency, 4G protection and capability ought to assist the telco in doubtlessly including customers sooner or later.
