TIL Desk/Business/New Delhi/ For Vodafone-Idea, the recovery hinges on network integration, cash position say analysts and the telco is well placed to realize full OpEx synergy of Rs 8,400 crore by June 2020 says its management. Motilal Oswal in a recent note said subscriber churn continues to hurt Vodafone Idea. For the British Indian company , 1QFY20 revenue declined 4.3 per cent QoQ to Rs 11,270 crore, led by continuing high subscriber churn (lost 14 million subs QoQ).
However, it was partly offset by a rise in ARPU of 4 per cent QoQ to Rs 108 due to Minimum Recharge Plans. On pre Ind-AS 116 basis, EBITDA declined 31 per cent QoQ to Rs 1,240 (v/s reported EBITDA of Rs 3,650 crore), with 420bp drop in margins as synergy gains were unable to insulate the decline in revenue.
Adjusted loss on pre Ind-AS 116 basis stood at Rs 4,120 crore v/s Rs 4,060 crore QoQ. Broadband subscribers remained flat QoQ at 110.5 million, while 4G subs addition remained dismal at 4.1 million. On a Concall Q1 post result highlights emerged as — Of the total Rs 8,000 crore synergy to be realized by Jun 2020, 70 per cent target synergies have been realized by June 2019. The management Reiterated network integration across circles and 95 per cent of 4G population in high potential districts by FY20.
