Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

<ul><li>Vodafone Idea’s stock crashed by 27% in today’s trade, closing at ₹6.7 per share. </li><li>As much as ₹1,400 crore, about $200 million, was lost in a single day’s trade.</li><li>Vodafone Idea posted a net loss of ₹4,874 crore, or over $700 million, in the first quarter of the current financial year. </li></ul> Vodafone Idea’s stock crashed by a massive 27% in today’s trade, closing at ₹6.7 per share. It means that as much as ₹1,400 crore, about $200 million, was lost in a single day’s trade. On Friday (July 26), Vodafone Idea posted a net loss of ₹4,874 crore, or over $700 million, in the first quarter of the current financial year. “Vodafone Idea’s results disappointed with revenues, EBIDTA (pre-tax profits), and a loss ---all missed estimates,” said a report by CLSA, which retained its ‘Sell’ recommendation. In the long-run Top telecom operators Vodafone and Idea Cellular had merged last year, and these synergies will start paying off in a year. “We are delivering on our stated strategy, although the benefits are not yet visible in our top line. We are well on track to deliver our synergy targets by Q1 of 2020-21. We expect these factors to increasingly contribute to our financial performance going forward,” said Balesh Sharma, CEO Vodafone Idea. But the shareholders were clearly not in the mood to wait so long. The company, in spite of its size, is unable to keep up with competition from Reliance Jio, which has been gaining subscribers at <a href="https://www.businessinsider.in/mukesh-ambani-owned-reliance-vs-vodafone-idea-vs-airtel-vs-bsnl-january-to-april-2019-subscriber-data/articleshow/69928185.cms">Vodafone Idea’s cost</a>. Vodafone Idea has been losing in terms of quantity and quality of subscribers as well. Its average revenue per user rose by a mere 4% to ₹108. Added to that, some of its best paying customers also downtraded which means went in for cheaper plans, leaving it with fewer profits.

Vodafone Idea lost $700 million in 3 months, but its investors lost $200 million in a day

<ul><li>Vodafone Idea posted a net loss of ₹4,874 crore, or $700 million, in the first quarter of the current financial year. </li><li>The company’s profit margins though almost doubled to 32.4% from the 15.2% in the fourth quarter ending March 2019. </li><li>Its average revenue per user or ARPU stood at ₹108, which went up by 3.3% quarter on quarter. </li></ul> Vodafone Idea posted a net loss of ₹4,874 crore, or over $700 million, in the first quarter of the current financial year. In the last quarter ending March 2019, it posted ₹4,881 crore in profits. On a quarter on quarter comparison, revenues fell by 4.3% to ₹11,269 crore mostly due to customers churn who recharged with service validity vouchers. The company said that its best customers or those who provide it with high revenues, have ‘down-traded’. It means that they have moved away to cheaper plans or service providers who offer bargains. ‘Benefits not visible on topline’ The company’s profit margins though almost doubled to 32.4% from 15.2% in the fourth quarter ending March 2019. “We are delivering on our stated strategy, although the benefits are not yet visible in our top line. We are well on track to deliver our synergy targets by Q1 of 2020-21. We expect these factors to increasingly contribute to our financial performance going forward,” said Balesh Sharma, CEO Vodafone Idea. The company also said that they are working towards integration of Vodafone India and Idea Cellular, which is improving customers’ data experience. “We now lead the league tables on data download speeds in Delhi, West Bengal and Chennai,” said Sharma. Its average revenue per user or ARPU stood at ₹108, which went up by 3.3% quarter on quarter. The stock of Vodafone Idea fell by 4.8% in today’s trade ahead of earnings announcement. Price war rages on Analysts believe that Vodafone’s fate will largely depend on the pricing strategy of competitors. That means if Jio increases prices, it will create room for others too, to follow suit thereby improving its chances at margins. At this juncture though, Vodafone Idea can make few mistakes as it is in a tough cash position. “VIL is moving in the right direction by strengthening 4G rollouts, balance sheet through rights issue, stake sale in Indus and potential monetization of fiber assets. That said, low EBITDA, substantially higher leverage and persistent cash burn has put VIL in precarious position with limited room to err. Synergy benefits, substantial 4G sub additions and tariff hikes are essential,” said an HDFC report in May, after its March 2018-19 results.

Vodafone Idea clocks a loss over $700 million in 3 months as Reliance Jio's price war continues to bite

Once arch rivals, Vodafone, Bharati <keyword id="15491" type="COMPANY" weightage="20" keywordseo="Airtel">Airtel</keyword> and Idea Cellular have now teamed up against <keyword id="2003276" type="UNKNOWN" weightage="20" keywordseo="Jio">Jio</keyword> and complained to the government that latter’s predatory pricing has been eating up in their revenues. To make sure, the government pays heed to their outrage, the three telecom operators claimed their incompetence to invest in future technology and create jobs. The top players in the industry had met a government panel, which aims to analyse the losses in the industry. <keyword id="3820" type="PERSON" weightage="20" keywordseo="Mukesh-Ambani">Mukesh Ambani</keyword> backed Jio has been accused of providing cellular services at ‘too low’ a cost, which is responsible for decline in the revenue generation. According to a <keyword id="6356641" type="CITY" weightage="20" keywordseo="times-of-india">Times of India</keyword> report, the worst affected Airtel, which has seen a severe contraction in profitability post the aggressive launch of services by Jio in September last year, said that the return on capital employed (ROCE) had dropped down to "perilously lower levels" and is "highly likely to be negative" if relief is not provided. Airtel said losses to the industry will also restrict the government's ability to earn from the sector. Its earnings will come down by Rs 10,000 crore. "Consolidation/ reduced investments will result in loss of direct/ indirect employment." The companies have sought to increase charge for terminating a call on their networks to be increased from the existing 14 paise per minute. "The IUC rate of 14 paise is lower than actual cost. In order to make this financially viable, it is critical that traffic between operators is symmetrical," Airtel told <keyword id="6371459" type="ORGANIZATION" weightage="20" keywordseo="toi">TOI</keyword>. "IUC needs to be correctly determined to prevent predatory voice-pricing environment. Aggressive tariffs in voice and data have resulted in a scenario of pricing below cost with every operator," Idea told TOI, seeking the fixation of a floor price for voice and data prices. However Jio has refused to the allegations. It believes that lack of investments by them in new technologies and mounting debt are making the other rivals outrageous.

Airtel, Vodafone, Idea blame Jio for revenue losses

Revenue of telecom service providers through wireless services is likely to fall in the first quarter of FY20-21 due to the nationwide lockdown, according to a report by Emkay Global Financial Services. The report noted that the lockdown delayed recharges by low ARPU (Average Revenue Per User) prepaid subscribers on account of the reverse labour migration and impact on income levels along with curbed subscriber additions, SIM consolidation and absence of international roaming revenues. "We expect ARPU to decline sequentially in Q1FY21 after healthy growth in Q4FY20. Bharti (<keyword id="15491" type="COMPANY" weightage="20" keywordseo="Airtel">Airtel</keyword>) and VIL (<keyword id="1553175" type="COMPANY" weightage="20" keywordseo="Vodafone-Idea">Vodafone Idea</keyword>) are likely to see 5 per cent quarter-on-quarter (qoq) fall in ARPU. Home broadband to see a healthy increase in new connections, boosted by the lockdown," it said. Subscriber addition shall moderate due to the lack of smartphone sales in April and early May, the report said adding that the reverse migration could lead to subscriber loss for the industry due to delayed or no recharges. Further, it noted that cost savings are expected from marketing, channel margins and other admin costs. Network opex shall continue to rise on increased utilisations. In case of Reliance Jio, the report said that "partial flow-through of the Dec 2019 tariff hike in Q1FY21 would get offset by lockdown-led delayed recharges, resulting in wireless revenues growth of 1 per cent qoq". Lower contribution from international roaming would also restrict ARPU for Jio as compared to peers, it said. "We project subscriber additions to be compressed at 6 million and ARPU to decline 2 per cent qoq, negatively impacted by the lockdown. Similar to Bharti and VIL, subscriber acquisition cost shall fall, leading to 114bps qoq expansion in EBITDA margin." SEE ALSO: <a href="https://www.businessinsider.in/business/telecom/news/reliance-jio-airtel-share-price-may-gain-as-broadband-plan-rates-fall/articleshow/76525187.cms">Home broadband bills could come down if government cuts its share⁠ — big boost for Reliance Jio and Airtel</a> <a href="https://www.businessinsider.in/business/telecom/news/jio-races-ahead-with-62-lakh-new-subscribers-vodafone-idea-loses-35-lakh-airtel-gains-9-lakh-in-february/articleshow/76689246.cms">Jio races ahead with 62 lakh new subscribers, Vodafone Idea loses 35 lakh, Airtel gains 9 lakh in February</a> <a href="https://www.businessinsider.in/tech/news/intel-will-speed-up-mukesh-ambanis-5g-run-power-him-with-ai-and-possibly-a-jio-laptop/articleshow/76780290.cms">Intel will speed up Mukesh Ambani’s 5G run, power him with AI and possibly a Jio laptop⁠— all in return for massive amount of data</a>

Airtel and Vodafone Idea's revenues take a hit due to Coronavirus lockdown

As soon as Idea Cellular announced news of <a href="http://www.businessinsider.in/idea-to-merge-with-vodafone-india-time-to-say-hello-to-indias-biggest-telco/articleshow/57728557.cms">forthcoming merger</a> with <a href="http://www.businessinsider.in/vodafoneindia-just-partnered-with-amazon-prime-video/articleshow/57717680.cms">Vodafone India</a> and <keyword id="2099963" type="UNKNOWN" weightage="100" keywordseo="Vodafone-Mobile-Services">Vodafone Mobile Services</keyword> (VMSL), its stocks dipped by 15%. 
 The deal has put Idea's implied enterprise value at $10.8 billion, as against the $12.40 billion valuation for <keyword id="6354923" type="COMPANY" weightage="100" keywordseo="Vodafone-India">Vodafone India</keyword>. 
 
After the stock fell 14.73%, it stood at Rs 92 on BSE. Earlier, it had risen 14.68% in the early trade and hit a high of Rs 123.75. 
 
Also read: <a href="http://www.businessinsider.in/airtel-vodafone-and-idea-are-facing-the-heat-from-jio-as-they-may-lose-upper-end-customers/articleshow/57287150.cms">Airtel, Vodafone and Idea are facing the heat from Jio as they may lose upper-end customers</a> 
 
In its filing to BSE, <a href="http://www.businessinsider.in/with-idea-making-incoming-calls-free-national-roaming-willsoon-be-a-matter-of-past/articleshow/57606367.cms">Idea</a> had said that after the deal, its promoters will hold a 26% stake in the resultant entity, while <keyword id="15492" type="CITY" weightage="100" keywordseo="Vodafone">Vodafone</keyword> will hold 45.10% after its promoters would transfer a 4.9% stake to Idea promoters for Rs 3,874 crore in cash. Rest of the stock would be for the public. 
 
Also read: <a href="http://www.businessinsider.in/reliance-jio-will-be-unfazed-by-vodafone-idea-merger-heres-why/articleshow/57509811.cms">Reliance Jio will be unfazed by Vodafone-Idea merger. Here’s why</a> 
 
"We expect the combine entity will have about 40 per cent revenue share. In the process of integration and combining the two big operations, they might lose some revenue market share to Jio or to other incumbents. We estimate about $11-12 billion revenue and Ebitda margins of 28-30 per cent, once these firms combine their operations." Nitin Soni of Fitch Ratings told ET. 
 
Idea also announced that it would issue equity shares to Vodafone India after the scheme of amalgamation with VMSL. This would be equal to 47% of the post-issue paid-up capital of the company on a fully-diluted basis. 
 
The company also said that after the merger, shares issued to Vodafone India in pursuant of the merger of VMSL with the company would stand cancelled. 
 
(Image source: Forbes)

You Searched For "vodafone idea revenue" and got 5 results

Vodafone Idea lost $700 million in 3 months, but its investors lost $200 million in a day

Katya Naidu

Vodafone Idea clocks a loss over $700 million in 3 months as Reliance Jio's price war continues to bite

Katya Naidu

Airtel, Vodafone, Idea blame Jio for revenue losses

BI India Bureau

Airtel and Vodafone Idea's revenues take a hit due to Coronavirus lockdown

IANS

Idea-Vodafone merger dips Idea stocks by 15%

BI India Bureau

Popular Keywords

Buying Guides