iWorld
Vodafone Idea Q1 FY23 revenue soars by 13.7 per cent; loss at Rs 7396.7 crore
Mumbai: Vodafone Idea announced its first quarter results for financial year 2022-2023. The company reported revenue of Rs 10,410 crore up by 13.7 per cent year-on-year (YoY). It reported a loss of Rs 7396.7 crore.
The company reported earnings before interest, tax, depreciation and amortisation of Rs 4330 crore and capital expenditure (capex) stood at Rs 8400 crore compared to Rs 12,100 crore in the corresponding quarter last year.
Vodafone Idea’s total gross debt as of 30 June stands at Rs 1,99,080 crore, comprising of deferred spectrum payment obligations of Rs 1,16,600 crore and AGR liability of Rs 67,270 crore that are due to the government, and debt from banks and financial institutions of Rs 15,200 crore. Cash and cash equivalents were Rs 8600 crore.
The company’s average revenue per user (ARPU) improved to Rs 128 up 3.6 per cent quarter on quarter (QoQ) from Rs 124 in Q4FY22. On a YoY basis, ARPU witnessed strong growth of 23.4 per cent aided by tariff hikes.
Vodafone Idea’s subscriber base declined to 240.4 million as compared to 243.8 million in Q4 FY22, however, its 4G subscriber base continued to grow and with one million customers added in Q1, its 4G base now stands at 119 million.
The company reported high data usage per 4G customer at ~14.3 Gb/month.
Vodafone Idea Limited MD and CEO Ravinder Takkar said, “We continue to witness 4G subscriber growth on the back of superior data and voice experience offered by Vi GIGAnet as well as due to our focus on creating differentiated digital experience for our customers.
He further said, “In the recently concluded spectrum auction, we have acquired sufficient spectrum in our key markets to offer superior 5G experience to our customers.”
“We also completed the first tranche of fund raising in the form of preferential equity contribution of ~Rs. 49.4 billion from our promoters, including the incremental infusion of ~Rs. 4.4 billion by Vodafone Group in July 2022. We continue to remain engaged with lenders and investors for further fund raising.”
iWorld
Bill Ackman’s Pershing Square makes $64 billion bid to acquire Universal Music Group
Ackman pitches NYSE relisting plan as UMG board weighs unsolicited offer
The hedge fund has proposed a business combination that values UMG at €30.40 per share, representing a hefty 78 per cent premium to its current trading price. The offer includes €9.4 billion in cash alongside stock in a newly formed entity, with shareholders set to receive €5.05 per share in cash and 0.77 shares in the new company for each UMG share they hold.
Under the proposal, UMG would merge with Pershing Square SPARC Holdings Ltd and re-emerge as a Nevada-based entity listed on the New York Stock Exchange. The move is designed to boost investor visibility and potentially secure inclusion in major indices such as the S&P 500.
Pershing Square Capital Management ceo Bill Ackman argued that while UMG’s operational performance remains strong, its market valuation has lagged due to external factors. “UMG’s stock price has languished due to a combination of issues that are unrelated to the performance of its music business,” Ackman said, pointing to concerns ranging from shareholder overhang to delayed US listing plans.
Ackman also flagged what he sees as untapped potential in UMG’s balance sheet and a lack of clear capital allocation strategy. He added that the market has not fully recognised the value of UMG’s €2.7 billion stake in Spotify, alongside gaps in investor communication.
The proposed transaction would also result in the cancellation of around 17 per cent of UMG’s outstanding shares, while maintaining its investment-grade balance sheet. Pershing Square has said it will fully backstop the equity financing, with debt commitments secured at signing. The deal is targeted for completion by the end of the year.
UMG, however, has struck a measured tone. The company confirmed that its board has received the non-binding proposal and will review it with advisers. It reiterated confidence in its current strategy and leadership under Lucian Grainge, signalling no immediate shift in stance.
The proposal comes at a time when global music companies are navigating evolving investor expectations, streaming economics and capital allocation pressures. For Pershing Square, the bet is clear: sharpen the financial story, relist in the US, and let the music play louder in the markets.
Whether UMG’s board is ready to change the tune remains to be seen, but the spotlight on its valuation just got a lot brighter.
