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.
iWorld
Netflix cuts jobs in product division amid restructuring
Layoffs hit creative studio unit as leadership and strategy shifts unfold.
MUMBAI: The streaming wars may be fought on screen, but the latest plot twist is unfolding behind the scenes. Netflix has reportedly begun laying off several dozen employees from its product division as part of an internal reorganisation, according to a report by Variety. The cuts are believed to have primarily affected the company’s creative studio unit, which works on marketing assets such as in app trailers, promotional visuals and live experience content for the streaming platform.
The company has not disclosed the exact number of employees impacted.
According to the report, the layoffs were not tied to employee performance. Instead, the restructuring eliminated certain roles while other employees were reassigned to different teams within the organisation.
The roles affected are understood to include designers, producers and creative specialists responsible for marketing and brand experience initiatives.
The job cuts come as Netflix adjusts its leadership structure and reshapes its product and creative teams. Last month, Elizabeth Stone was promoted from chief technology officer to chief product and technology officer, giving her oversight of product, engineering and data operations across the company.
Earlier, in December 2025, Netflix also appointed Martin Rose as head of creative for global brand and partnerships, a move seen as part of a broader restructuring of the company’s brand and product functions.
Despite the layoffs, Netflix remains one of the largest employers in the streaming sector. The company is estimated to employ around 16,000 people globally, with roughly 70 percent of its workforce based in the United States and Canada. In 2023, the company reported approximately 13,000 employees, indicating that its headcount had grown significantly before the latest restructuring.
The workforce changes arrive at a time when Netflix is navigating a shifting financial and strategic landscape in the global entertainment industry.
The streaming giant recently secured $2.8 billion in additional cash after receiving a breakup fee from Paramount Skydance following its withdrawal from a deal involving Warner Bros. Discovery.
Speaking to Bloomberg, Netflix co chief executive Ted Sarandos explained that the company had evaluated multiple scenarios during the negotiations but chose not to match the competing offer once it learned that a higher bid had been submitted.
Netflix had capped its offer at $27.75 per share and ultimately stepped back rather than pursue Paramount’s $111 billion acquisition deal, which included a personal guarantee.
Sarandos also cautioned that the financing structure behind the Paramount Skydance transaction could have ripple effects across the entertainment industry.
According to him, the debt heavy deal could trigger significant cost cutting, with David Ellison, chief executive of Paramount Skydance, expected to eliminate about $16 billion in costs and potentially cut thousands of jobs as part of the integration process.
For Netflix, the current restructuring appears to be part of a broader attempt to streamline operations while continuing to invest in product, technology and global content even as the streaming industry enters a new phase of consolidation and financial discipline.
