iWorld
Vodafone Idea posts highest quarterly cash EBITDA since merger in Q2
Mumbai: In a significant financial leap, Vodafone Idea Limited (Vi) posted its highest quarterly cash EBITDA since its merger, fueled by strategic network expansions and tariff hikes. The quarter ending 30 September 2024, marked a milestone for Vi as it reported a robust quarterly cash EBITDA growth of 10.5 per cent, reaching Rs. 23.2 billion. This record-breaking achievement comes on the heels of a major $3.6 billion network equipment agreement with tech giants Nokia, Ericsson, and Samsung, aimed at accelerating the company’s network capabilities.
Vi’s revenue from operations rose to Rs.109.3 billion for Q2FY25, reflecting a quarter-on-quarter (QoQ) increase of 4 per cent. Notably, customer revenue climbed by 5.6 per cent following tariff adjustments implemented in July, positioning the company to drive further revenue gains in the ensuing quarters.
Amidst these revenue gains, Vi’s EBITDA margin strengthened to 41.6 per cent compared to 40 per cent in the prior quarter. However, challenges persist, with the company reporting a consolidated net loss of Rs. 71.8 billion, widening from the Rs. 64.3 billion recorded in Q1FY25. The increase in interest and financing costs to Rs. 63.1 billion, up from Rs. 52.6 billion last quarter, underscores ongoing financial pressure.
Vi made significant progress in reducing its bank and institutional debt, cutting it by Rs. 45.8 billion over the last year to Rs. 32.5 billion as of September 2024. However, long-term obligations remain substantial, with government dues totaling Rs. 2,122.6 billion. These include deferred spectrum payments of Rs. 1,419.4 billion and an AGR liability of Rs. 703.2 billion.
The highlight of Vi’s strategy this quarter was a rapid enhancement of its 4G infrastructure. Following its recent capital raise, the company expanded its 4G data capacity by 14 per cent and extended 4G coverage to an additional 22 million users. With a subscriber base of 205 million and 125.9 million 4G users, Vi deployed a record-breaking 42,000 new 4G sites during Q2FY25. This includes 20,500 sites upgraded with sub-GHz 900 MHz bands, improving indoor coverage and overall network experience.
The capex allocation for Q2FY25 amounted to Rs. 13.6 billion, a significant increase from Rs. 7.6 billion in Q1FY25. Looking forward, Vi has earmarked an ambitious Rs. 80 billion in capex for the second half of FY25, signaling continued focus on expanding its network footprint and enhancing customer connectivity.
To retain high-value postpaid customers, Vi revamped its RED X Plan with premium benefits, including unlimited data, streaming subscriptions, and complimentary international roaming. This approach appears to be effective, with the postpaid subscriber base seeing both quarterly and annual growth. Average Revenue Per User (ARPU), a key performance metric in telecom, increased by 7.8 per cent QoQ, reaching Rs. 166 from Rs. 154 in Q1FY25.
In the digital space, Vi showcased its commitment to innovative solutions at the Indian Mobile Congress 2024. Vi demonstrated its ‘Future is Live’ initiative, highlighting industry applications of IoT, AI, and ML in areas such as smart mining and remote monitoring. Vi Business further expanded its enterprise offerings by partnering with Genesys and Infinity Labs to introduce advanced cloud-based customer experience and security solutions.
With plans to extend its 4G coverage to 1.2 billion by September 2025 and initiate selective 5G rollouts by Q4FY25, Vi aims to solidify its position as a leading telecom player in India. However, the company’s ability to manage its financial liabilities will be pivotal.
Gaming
MTG gaming chief Benninghoff joins NODWIN board as esports firm primes for IPO
The Gurugram-based esports firm is pursuing a public listing, has returned to profitability and is growing revenues by 42 per cent
GURUGRAM: NODWIN Gaming is moving fast. The Gurugram-based gaming and esports company has launched a pre-IPO fundraising round, appointed UBS as lead adviser for both the round and a subsequent public listing, and landed a heavyweight board director, all in one go.
The new board member is Arnd Benninghoff, executive vice president of gaming at Stockholm-listed Modern Times Group (MTG), who has overseen the group’s strategic investments and portfolio growth since 2014. He is no stranger to building things: Benninghoff has founded and built fifteen companies, served as chief digital officer at ProSiebenSat.1 Media AG, managing director of SevenVentures, and chief executive of Holtzbrinck eLAB. He began his career as a journalist at Deutsche Presse Agentur and various TV networks, holds a Diplom-Kaufmann in business and administration from the University of Münster, and previously sat on the board of Edgeware AB.
The numbers back the ambition
NODWIN is not pitching a story without substance. The company has returned to EBITDA profitability and posted a 42 per cent year-on-year revenue surge, reaching $58.5m in the first nine months of FY2026. The pre-IPO round will combine a primary issuance to fund global expansion through organic growth and acquisitions, alongside a secondary sale to give existing shareholders some liquidity.
Akshat Rathee, co-founder and managing director of NODWIN Gaming, said Benninghoff understands “the entire lifecycle of the gaming and media ecosystem, from the boots-on-the-ground reality of building startups to the strategic complexity of managing multi-billion dollar global portfolios.”
Benninghoff, for his part, said the company “sits at the intersection of sports, entertainment, and technology, making it one of the most exciting players in the global gaming landscape today.”
A portfolio built for the global south
Founded in 2014 by Rathee and Gautam Virk, NODWIN has quietly assembled one of the more compelling esports portfolios outside the Western hemisphere. Its properties include DreamHack India and Comic Con India, and it recently acquired StarLadder, the Ukraine-based tournament organiser behind premier events in CS:GO and Dota 2. The company also serves as a long-term strategic marketing partner for the Evolution Championship Series (EVO), the world’s most prominent fighting game tournament, helping push it into new geographies.
Its geographic focus spans South Asia, Central Asia, Southeast Asia, the Middle East and Africa. Backers include Nazara Technologies, KRAFTON, Sony Group Corporation, JetSynthesys, and the founders’ investment vehicle Good Game Investments.
What comes next
With UBS running the books, a board freshly reinforced with European media and gaming expertise, and revenue heading in the right direction, NODWIN is laying the groundwork deliberately. The esports industry has burned investors before with big promises and thin margins. NODWIN’s return to profitability, combined with a real portfolio of owned intellectual properties across gaming, music and youth culture, gives it a more credible runway than most. The IPO clock is now ticking.
