1.Vodafone Idea’s net loss as a result of dues to the telecom sector is higher than street estimates. Analysts on average reported a consolidated net loss of Rs. 4,422 crore in the quarter, the news agency reported, citing Reuters refinancing data, though those figures did not include a one-time charge.
2.Telecom Major net loss of Rs. 4,973.8 crore for the quarter ended September 30, 2018. Vodafone India’s merger with Idea Cellular does not compare to these figures as it was completed on August 31, 2018, so Vodafone figures for the second quarter of 2018-19.
3.Vodafone Idea’s Average Income (ARPU) – A key metric of profitability for telecom companies – is Rs. 107 during the July-September period of Rs. The number of subscribers fell to 31.11 crore at the end of September from 32 crore at the end of June.
4.Last month, the Supreme Court upheld the telecommunication department’s (DOT) demand to pay Rs 50 to wireless carriers. 92,000 crore for overdue levies and interest. Vodafone Idea and rival Bharti Airtel – two of the country’s three major mobile carriers – will have to pay most of this demand.
5.Vodafone Idea said the Supreme Court’s ruling on adjusted gross revenue (AGR) issue “has significant financial implications for the industry.”
“We are actively negotiating with the government seeking financial relief following the recent respected Supreme Court ruling,” said Ravinder Thakkar, Managing Director and CEO of Vodafone Idea.
6.The telecom service provider also said it was in the process of filing a review petition in the Supreme Court that the ability to proceed as a matter of concern depends on the relief of the government and the positive effects of the proposed legal remedy.
7.The company’s gross debt at the end of September was Rs. 1.17 lakh crore. Reuters said analysts had previously warned that Vodafone Idea could be worse off after the Supreme Court ruling due to its already expanded balance sheet.
8.Telecom providers in India pay about 3-5% of their adjusted gross income (AGR) as license fees on spectrum or airwaves utilization charges and 8% on AGR.
9.DoT and mobile carriers disagree on the definition of AGR. The companies argue that AGR should only include revenue from core services, while the DoT states that AGR should include all revenues.
10.Meanwhile, Bharti Airtel on Thursday closed at Rs. 23,045 crore in the September quarter. Airtel charges Rs. 28,450 crores after Supreme Court judgment.
Vodafone Idea launched at Rs. 50,921.9 crore for the quarter ended September 30. This marks the largest quarterly loss in Indian corporate history. One-time collections of government dues and penalties of Rs. 25,677.9 crore collected by the Department of Telecommunication during the quarter was affected by the company’s financial performance. Vodafone Idea said in a regulatory filing that its revenue from operations was Rs. 10,844 crore in the second quarter of the current fiscal. 7,663.5 crore in the same period a year ago.
*from various sources.