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Vodafone Idea (Vi) on Monday reported a net loss of Rs 6,985 crore, narrowing 12.5 per cent in the third quarter of FY24 from Rs 7,990 crore in the corresponding quarter of the previous financial year as a result of lower expenses.
On a sequential basis, the firm’s net loss reduced 20 per cent, down from Rs 8,737 crore in the preceding quarter. However, the telco’s finance cost increased to Rs 6,493 crore, up from Rs 6,284 crore in the same quarter of the previous year.
The average revenue per user (Arpu) for the quarter rose to Rs 145, up from Rs 142 and Rs 139 in the preceding two quarters, respectively. The company said this was primarily aided by the change in entry level plans and subscriber upgrades. Vi’s 4G subscriber base continued to grow for the tenth consecutive quarter and stood at 125.6 million, up from 124.7 and 122.6 million subscribers in the preceding two quarters.
However, the company continued to lose customers to larger rivals, Reliance Jio and Bharti Airtel, ending Q3 with 4.6 million fewer subscribers.
In the quarter, a gain of Rs 755 crore arising out a telecom disputes settlement and Appellate Tribunal ruling helped the company’s earnings. The telecom tribunal had told the Department of Telecommunications (DoT) to adjust the excess amount collected from Vi – as part of its earlier merger-related liabilities – against its statutory licence fee and spectrum usage charge (SUC) dues.
Growth in gross revenue also remained sluggish, coming in at Rs 1,067.3 crore, up 0.49 percent annually. Earnings before interest, tax, depreciation, and amortisation (Ebitda) rose to Rs 4,350 crore, up 4 per cent from Rs 4,180 crore in Q3FY23.
“In line with the evolving industry landscape and changing customer needs, we have revamped our offerings as well as focusing on our execution to effectively compete in the market. Resultantly, we are able to grow our 4G subscribers and Arpus consecutively for the past 10 quarters. We remain engaged with various parties for fundraising, to make required investments for network expansion, including 5G rollout,” Akshaya Moondra, chief executive officer, said in a statement.
First Published: Jan 29 2024 | 9:00 PM IST
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