Vodafone Idea Ltd posts consolidated net loss at Rs4,609cr in Q2FY19

The company’s consolidated revenue stood at Rs7,664cr.

Nov 14, 2018 03:11 IST India Infoline Research Team

Idea Cellular Ltd Q2FY19

Consolidated Results Q2FY19: (Rs. in cr)

Q2FY19 QoQ (%)
Revenue 7,664 NA
EBITDA Margin (%) 6.0 NA
Net Loss (adjusted) 4,609 NA
***EBITDA margin change is bps

Vodafone Idea missed consensus estimates for Q2FY19 due to shrinkage in ARPU and subscriber losses in the quarter. Due to the merger of Vodafone and Idea, the results are neither comparable on yoy nor on qoq basis. Revenue cme in at Rs7,664cr (expectation Rs7,653cr). EBITDA stood at Rs461cr against estimates of Rs715cr. Adjusted Net Loss stood at Rs4,609cr against an expected loss of Rs2,783cr.
  • The Pro forma financial performance for the merged entity for Q2FY19 stood at:
    • Revenue - Rs12,024cr (down 7.1% qoq)
    • EBITDA – Rs978cr (down 28.7% qoq)
    • Capex – Rs3,296cr (up 30.7% qoq)
  • Blended ARPUs declined from Rs92 in Q1FY19 to Rs88 in Q2FY19 due to persistence of down trading in the industry. The active subscriber base for the company stood at 403mn at the end of the quarter, down 2.1% yoy.
  • Total data volumes stood at 2,260bn MB, up 19.6% qoq.
  • Net debt for Q2FY19 stood at Rs1.1 lakh cr, with Net debt-to-equity standing at 1.62x (against 1.8x in Q1FY19).
  • The merger of Indus Towers and Bharti Infratel is progressing as expected. The company has an option to monetise part of its stake in the merged entity for Rs5,370cr (based on past 60 days VWAP for Bharti Infratel).
  • The Board is evaluating a plan to raise Rs25,000cr of equity. The promoters, Vodafone and Aditya Birla Group, have indicated that they would contribute Rs11,000cr and Rs7,250cr respectively as part of such a plan to raise capital. The capital raising plan is expected to be completed by Q4FY19.
  • The company has also announced that it intends to sell its 1.56 lakh km fibre network.

Technical View:

Vodafone Idea Ltd ended at Rs. 41.45, up by 0.75 points or 1.84% from its previous closing of Rs. 40.70 on the BSE.
The scrip opened at Rs. 40.70 and touched a high and low of Rs. 42.05 and Rs. 39.60 respectively. A total of 2,83,80,731 (NSE+BSE) shares were traded on the counter. The stock traded below its 200 DMA.

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