Vodafone Idea Q3 Results: 4% Revenue Growth, ₹6,609 Crore Loss, ARPU at ₹173
Business and Industry Overview:
Vodafone Group Plc is a multinational telecom firm based in the United Kingdom. Its global headquarters and registered office are located in Newbury, Berkshire, England. It predominantly operates services in Asia, Africa, Europe, and Oceania. As of January 2025, Vodafone owns and operates networks in 15 countries, with partner networks in 46 further countries. Its Vodafone Global Enterprise division provides telecommunications and IT services to corporate clients in 150 countries. Vodafone has a primary listing on the London Stock Exchange and is a constituent of the FTSE 100 Index. The company has a secondary listing on the NASDAQ as American depositary receipts (ADRs).
Vodafone India is the Indian subsidiary of the UK-based Vodafone Group. It provides telecommunications services in India and has its operational head office in Mumbai. The Vodafone Idea network has approximately 375 million subscribers and is the third-largest mobile telecommunications network in India.
Currently, India is the world’s second-largest telecommunications market, with a total telephone subscriber base standing at 1,203.69 million and having registered strong growth in the last decade. The Indian mobile economy is growing rapidly and will contribute to India’s Gross Domestic Product (GDP), according to a report prepared by the GSM Association (GSMA) in collaboration with Boston Consulting Group (BCG). Vodafone Idea is one of the dominant players in the market with 18.19% market share.
Latest Stock News:
Telecom giant Vodafone Idea’s consolidated net loss narrowed to ₹6,609 crore in the quarter ended December 2024, down from ₹6,986 crore in the same period last year. The company’s revenue from operations for Q3FY25 stood at ₹11,117 crore, reflecting a 4% rise Vodafone Idea reported a reduction in its consolidated net loss for the December quarter to₹6,609 crore, compared to ₹6,986 crore in the same period last year.
Average revenue per user (ARPU), a key metric for all telecoms, has increased sequentially by 4.7% to₹173 in Q3 FY25, compared to₹166 in the September quarter.
Segmental information:
Vodafone operates in several business segments, primarily categorized into:
1. Consumer Segment: It provides mobile and fixed-line telecommunications services to individual customers. It also offers broadband, TV, and digital services.
2. Vodafone Business (enterprise segment): Vodafone serves corporate clients, small businesses, and public-sector organizations. It also offers connectivity services (mobile, fixed, IoT, 5G), cloud and security solutions, unified communications, and managed services. Multinational corporations, SMEs, and IoT services are the major revenue contributors.
3. Vodafone Towers (Vantage Towers): Vodafone’s tower infrastructure in Europe is managed by Vantage Towers. It also focuses on leasing tower space to other telecom operators.
4. Financial & Digital Services: This includes M-Pesa (an African-based mobile money service), digital payments, insurance, and fintech solutions.
Subsidiaries:
- Vodafone Idea Telecom Infrastructure Limited (VITIL): It provides passive infrastructure services, including renting out fiber networks to telecommunication service providers.
- Vodafone Idea Business Services Limited (VIBSL): It acts as an outsourcing hub for backend IT support, data center operations, and hosting services for the company and its subsidiaries. Also holds an Other Service Provider (OSP) license.
- You Broadband India Limited (YBIL): provides high-speed broadband internet access through cable networks.
- Vodafone Idea Communication Systems Limited (VICSL) : It trades mobile handsets, data cards, and related accessories and services.
- Vodafone Idea Shared Services Limited (VISSL): It functions as an outsourcing hub for finance and accounts, human resources, supply chain management, credit and collection support, customer support, and IT needs for data consolidation and backend support for the company and its subsidiaries.
- Vodafone Idea Technology Solutions Limited (VITSL): It provides technology, software, hardware, value-added services (VAS), application software, content, and related products and services. It also offers data center-related services and IT solutions, including e-SIMs.
- Vodafone Idea Manpower Services Limited (VIMSL): It provides manpower services to the company.
- Vodafone Foundation (VF): A Section 8 company under the Companies Act, 2013, serving as an implementing agency for corporate social responsibility (CSR) activities for the company, its subsidiaries, associates, joint ventures, and promoter group companies.
Joint Venture:
- FireFly Networks Limited: A joint venture with Bharti Airtel, focusing on deploying Wi-Fi solutions for businesses, smart cities, and retail spaces.
Associate Company:
- Aditya Birla Idea Payments Bank Limited: A payments bank offering digital banking services such as mobile wallets, savings accounts, and online transactions. Operations have been discontinued due to regulatory and business challenges.
Q3 Highlights:
- Net Loss down to ₹6,609.3 crore versus loss of ₹7,175.9 crore, QoQ
- Revenue up 1.7% at ₹11,117.3 crore versus ₹10,932.2 crore, QoQ
- Average Revenue Per User (ARPU) up at ₹173 versus ₹166, QoQ
- EBITDA up 3.6% at ₹4,712.4 crore versus ₹4,549.8 crore, QoQ
- Margin at 42.4% versus 41.6%, QoQ
- Vodafone Idea net loss narrows to ₹6,609 crore, revenue rises 4% YoY; ARPU up at ₹173
- Total subscriber base at 199.8 million
Financial Summary:
| Amount in ₹ Cr | Q3 FY24 | Q3 FY25 | FY23 | FY24 |
| Revenue | 10,673.00 | 11,117.00 | 42,177 | 42,652 |
| Expenses | 6,324 | 6,405 | 25,424 | 25,580 |
| EBITDA | 5130 | 4,712.40 | 17,162.00 | 17,106.00 |
| OPM | 41% | 42% | 40% | 40% |
| Other Income | 780 | 250 | 354 | 917 |
| Net Profit | -6,986.00 | -6,609.00 | -29,301 | -31,238 |
| NPM | -65.45 | -59.45 | -69.47 | -73.24 |
| EPS | -1.44 | -0.95 | -6.02 | -6.23 |