The telecommunications service provider recorded a quarter-on-quarter (QoQ) sales decline of 11.8%.
Vodafone Idea (Vi) users consumed 48.5 million terabytes of data in the fourth quarter of the 21st quarter ended March 31, 2021; the consumption per user has also increased from 11.5 GB to 13 GB. The total data volume has increased by almost 20% compared to the same quarter of the previous year; consumption in the following quarter is likely to be higher due to the increase in data consumption that is likely to have caused the second wave of the COVID-19 pandemic. The company said it had “strong 4G net additions” of 4.2 million, bringing the current 4G base to 113.9 million.
However, the company continues to experience net losses due to a variety of factors, including one-time network costs. Injecting capital appears to be the only step that can revive the telecommunications company’s finances, which said it was in active conversation with potential investors. “Cost optimization [is] underway aiming to achieve annual operating cost savings of Rs 40 billion by December 2021; achieved ~ 65% of target operational efficiency on a run rate basis, ”the company said in a press release.
Most of the QoQ revenue decline this quarter was due to the elimination of the Interconnect Usage Charge (IUC), where a telecommunications provider whose user is making a call pays the receiving network a statutory amount. Airtel and Jio probably weren’t as badly affected by this aspect as their inbound and outbound call traffic was largely balanced, making the IUC a drop in the bucket in terms of cash flow.
For network expansion: To date, we have deployed over ~ 62,000 TDD locations in addition to providing ~ 13,600 Massive MIMO locations and ~ 12,600 Small Cells. Our total number of broadband locations as of March 31, 2021 was 452,650 compared to 436,006 a year ago. We closed over 30,000 3G sites during the year while adding over 47,000 4G sites. We are expanding our LTE 900 presence in 11 districts at selected locations, including through dynamic spectrum refarming to improve the customer experience. Our 4G network covers over 1 billion Indians as of March 31, 2021 (4G coverage is the population Vi reaches / covers with its 4G network). – VI quarterly report
Vi operationally acquired 23.6 MHz spectrum in the 900 and 1800 MHz bands in Tamil Nadu, Karnataka, UP East, UP West and West Bengal for a total value of Rs. 1,993 crore in the spectrum auction in March.
Financial Snapshot – Q4FY21
revenue: Rs 9,610 crore, down 11.8% from QoQ
EBITDA: Rs 4,408.7 crore (compared to Rs 4,380 crore in Q4FY20)
Annual deficit: Rs 6,985.1 billion (down ~ 40% yoy)
Press release | Quarterly report