Vodafone Idea Q2 results preview: Potential losses widen; ARPU may increase from tax increase
Vodafone Idea- the struggling telecommunications company is expected to report September earnings on Wednesday (November 13). Zee Business Research expects the telco to report mixed numbers with revenue rising sharply on rising costs, however losses appear to be widening.
For the quarter under review, consolidated loss is expected to increase by 6.5 percent quarter-on-quarter (QoQ) to Rs 6,850 crore as against Rs 6,432 crore. Income from operations at the company is expected to increase by 5.6 percent sequentially to Rs 11,100 crore compared to Rs 10,508 crore in the June quarter.
A slight increase in revenue is expected as the company took a hike in taxes at the beginning of the quarter in July. This was the first major price increase announced by telcos since 2021.
On the operational front, EBITDA at the company will increase by 8.2 percent sequentially from Rs 4,205 crore in the previous quarter to Rs 4,550 crore. On incremental EBITDA, margin is expected to expand by 100 bps or 1% to 41% in Q2FY25 compared to 40 percent in Q1FY25.
Average revenue per user (APRU)- the telecom company’s monthly earnings per user is seen to gain 8.2 percent to Rs 158 in the September quarter from Rs 146 per share.
Subscriber base
Analysts expect the company’s subscription base for the September quarter to drop by another 40 lakh. In the previous earnings, the company highlighted that it is its twelfth consecutive quarter of 4G subscriber additions which increased to 12.67 crore as compared to 12.29 crore in the same quarter last year.
What can you expect from H2?
Zee Business Research expects a 45/5g network rollout in the second half of the current financial year.
