Vodafone Idea shares win 4% after earnings report

Vodafone Idea shares rise 4% after earnings announcement

New Delhi:

Shares of telecommunications operator Vodafone Idea gained 4 percent in morning trading on Wednesday, a day after the company reported that its consolidated losses ended at Rs 6,563.1 crore for the fourth quarter.

The share rose by 3.31 per cent on the BSE to Rs 9.03 and on the NSE it rose by 4 per cent to Rs 9.05 apiece.

Vodafone Idea reported on Tuesday that its consolidated losses were reduced to Rs 6,563.1 crore for the fourth quarter ended March, compared to the same period of the previous year, while its realization per user or ARPU improved sharply on a successive basis, aided by November tariff increases.

VIL’s losses a year ago were at Rs 7,022.8 crore, according to a company filing.

Its operating income rose 6.6 percent year-on-year in Q4 FY22 to Rs 10,239.5 crore. Seen consecutively, revenue increased by 5.4 percent, supported by tariff increases of November 25, 2021, the company said in a statement.

The realization per user measured in terms of ARPU – a key measure for telcos – rose to Rs 124 for the just ended quarter of Rs 115 in the previous three-month period.

This translated into a successive 7.5 percent increase in average revenue per user (ARPU), although the company’s subscriber base dropped to 243.8 million from 247.2 million in Q3 FY22, mainly due to the tariff increase .

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