Vodafone Idea registers unexpected rise in ARPU

MUMBAI : Indian telecom operator Vodafone Idea pulled off a 11% jump in average revenue per user (ARPU) to report 6% growth in quarterly revenue ahead of analyst estimates. According to analysts Vodafone Idea was expected to report around 3-4% gains in average revenue per user (ARPU) during Jan-March to bring it up to ₹113 however ARPU for Q4 improved to Rs. 121 instead, driven by the prepaid tariff hike effective from December 2019.

Earnings before interest tax depreciation and amortization (Ebitda) grew 16% after adjusting for exceptional items, and reflected the benefits of tariff hikes said brokerages.

In Q4, Reliance Jio and Bharti Airtel’s Q4 ARPU grew by 1.7% and 14.1% QoQ respectively. But unlike Vodafone Idea which lost 4% subscriber base during the quarter, the other telcos grew ARPU on an expanding user base.