Vodafone Idea Q2 Results Preview: Revenue likely to remain flat due to decreasing subscribers; losses may improve

Vodafone Idea Q2 Results Preview: Vodafone Idea's second-quarter subscriber numbers are declining, and the effect is likely to be seen in its quarterly results as the telecom operator is set to report its Q2 numbers on Thursday (October 26, 2023), predicts Zee Business research.

The analysts say that the company's income is likely to remain flat in the second quarter due to its reduced number of subscribers.

Research estimates the company's revenue to rise by 0.4 per cent to Rs 10,700 crore in the quarter under review from Rs 10,656 crore in the first quarter of the same financial year. 

Analysts estimate that the telecom operator is likely to improve its losses by 3.7 per cent, which can be Rs 7,550 crore in the second quarter from Rs 7,840 crore in Q1.      

Research says there is a possibility that EBIDTA of the company also remains flat in the second quarter at Rs 4,175 crore from Rs 4,178 crore in the previous quarter.  

The company's average revenue per user (ARPU), which is a key metric that measures how much revenue a company generates from each customer over a set period of time, is estimated to improve by 1.4 per cent to Rs 141 from Rs 139.

Though there is expected to be some improvement in ARPU, the company's margin is expected to remain flat at 39 per cent in the current quarter.

The research says that investors need to focus on commentary on capital raising and tariff increases.

The company is expected to give some updates on the 5G rollout, as per research.