Vodafone Idea, on a comeback trail, looks for a COO after Abhijit Kishore was elevated CEO
Vodafone Idea is looking for a new Chief Operating Officer (COO). The top executive is expected to take over the day-to-day operations of the third-largest private telecommunications company at a time when there are hopes of some relief from hefty regulatory fees.
The company’s former COO, Abhijit Kishore, was appointed chief executive officer for three years this August.
“The selection of the new COO is ongoing, we will update if there is any development.” a company spokesperson said in response: Mint‘s queries.
The new top will have a tough task as the company charts aid from the union government, which is expected to help cash-strapped telcos, in addition to facing stiff competition from market leaders Reliance Jio and Bharti Airtel.
The government owns 49 percent of Vodafone Idea.
Earlier in November, the Supreme Court had declared that the government may reassess and assess Vodafone Idea’s entire adjusted gross revenue (AGR) dues as of 2016-17, including interest and penalties. The order was a significant relief for the company.
AGR is the revenue figure used to calculate the license fees and spectrum charges that telecom companies must pay to the government. And Vodafone India’s AGR dues as of March end ₹83,400 crore.
Mint has learned that its next COO may be from outside the telecommunications industry.
License fee myth
Shares of Vodafone Idea rose 8.52% in afternoon trading hours on the Bombay Stock Exchange on Tuesday. ₹10, up 6.7% per piece since opening.
That’s because the operator surprised with a better-than-expected performance in the second quarter, whose results were announced on Monday. Telekom announced net loss ₹5,524 crore, lower than the loss a year ago ₹7,176 crore plus Bloomberg’s loss estimate ₹6,712 crore.
The lower losses were attributable to reductions in expenses, particularly financing costs, which include interest payments on debt and other obligations and account for 43% of revenue from operations. carrying debt ₹2 trillion with repayments starting next year.
“Based on existing efforts and the Supreme Court’s recent directions, the group believes it will be able to obtain DoT support, successfully raise funds and generate cash flow from operations,” the telco said in a statement following the results. he said.
New CEO Kishore took over the reins from Akshaya Moondra, who was Idea Cellular’s chief financial officer (CFO) from June 2008 to August 2018. Moondra played a key role in Idea Cellular’s merger with Vodafone India in 2018 and became CEO in August 2022.
With 196.7 million customers, it is significantly behind the subscriber base of Vodafone Idea, Reliance Jio and Bharti Airtel. Jio has 506 million customers and Airtel has 364 million customers.
The company’s average revenue per user (Arpu), an important performance metric among telcos, increased marginally. ₹167 in the last quarter ₹165 in the April-June quarter. In comparison, Reliance Jio’s Arpu stood at: ₹211.4 and Airtel ₹256 in the September quarter.
