Even though it has lost the subscriber base, it may still see some improvement in average revenue per user (ARPU) as most of the lost subscribers belonged to the lower-ARPU bucket.
Investor will watch out for management commentary on business plan to curb loss of subscribers, roadmap for fundraising, longer term 5G plans and the initial feedback post recent rebranding
Kotak Institutional Equities expects Vodafone Idea to report a net loss of Rs 3,706.8 crore, compared with record Rs 50,921.9 crore a year ago, while it believes net sales may inch up 0.4 per cent from a year ago, and 2.1 per cent from the preceding quarter to Rs 10,884.2 crore.
In the quarter ended September 2019, the telecom firm had reported a loss of Rs 50,921,9 crore for the September quarter – the highest ever by any Indian company, as it made a provision for the Supreme Court’s ruling on payment of average gross revenue (AGR) dues, even as ongoing brutal pricing war continued to hurt.
The brokerage expects ARPU of Rs 119 per month compared with Rs 107 a year ago.
Credit Suisse analysts expect Vodafone Idea to report a net loss of Rs 5,701.7 crore, and expects revenues to grow by 1.3 per cent to Rs 10,801.3 crore, with continued subscriber loss offsetting recovery in mobile ARPU as recharge activity increases during the quarter.
“We expect revenues to stabilise for Vodafone Idea (VIL) in 2Q FY21 as Covid-19 had a greater impact on VIL with its revenues declining by 9.2 per cent QoQ (quarter-on-quarter) in Jun 2020 quarter, given higher salience of lower ARPU subs,” Credit Suisse said in a note.
“Near-term catalysts for the stock would be progress towards announced Rs 250 billion equity and debt capital raise,” they added.
ICICI Securities expects Vodafone Idea to report a net loss of Rs 5,898.9 crore, while it sees revenues declining 0.2 per cent from a year ago, and rising 1.5 per cent from the June quarter to Rs 10,824.2 crore.
“This is due to continued loss of subscribers (down 8 million), which should start growing from Q3FY21 itself. ARPU is estimated to increase by 5 per cent QoQ as most of the lost subs were in the low-ARPU bucket,” ICICI analysts said.
They expect Vodafone Idea’s EBITDA to show a dip of 7.3 per cent QoQ to Rs 38 billion due to a one-off benefit of Rs 3 billion in Q1FY21.
"Idea" - Google News
October 28, 2020 at 11:57PM
https://ift.tt/3myE9OG
Q2 preview: Voda Idea losses may narrow; management commentary key - Economic Times
"Idea" - Google News
https://ift.tt/2VWDFI5
https://ift.tt/3d3vX4n
Bagikan Berita Ini
0 Response to "Q2 preview: Voda Idea losses may narrow; management commentary key - Economic Times"
Post a Comment