NEW DELHI: After four-year hiatus, the loss-making Vodafone Idea (VIL) added 0.2 million active users in March 2022. This is the first time, after the merger with Idea Cellular, the telco increased its active subscriber base. “VIL saw an active subscriber's net addition of 0.2 mn, first positive net addition in a month post-merger,” said ICICI Securities in a note.
VIL, in its fourth-quarter result (FY2021-22) reported narrowing its year-on-year loss to Rs 6,563 crore. Its revenue grew by 5.4% quarterly to Rs 10,240 crore, supported by tariff hikes effective November 25, 2021. The company said its average daily revenue (ARPU) rose by 7.7% quarter-on-quarter, highest quarterly rise since merger.
However, experts believe that to ensure survival, the company needs to raise capital as early as possible. “The company needs to raise capital as early as possible to stay competitive. Subscriber churn also needs to be controlled, while the network spends lag vis-a-vis peers. We seek management commentary on fundraising,” commented ICICI securities on its result.
Even Sunil Bharti Mittal, chairman of Bharti Airtel, questioned VIL’s ability to raise funds. Mittal, while addressing CII summit, said, “Pardon me for saying this, Vodafone Idea, for the last two years, saying we are going to raise money, nothing has come through. Therefore, it is the credibility of an organisation, individual, or promoters that coun.” Meanwhile, VIL today announced that it has demonstrated a peak download speed of 5.92 Gbps during the ongoing 5G trials.