Vodafone Idea Limited (VI) on August 3 reported a marginal decline in its consolidated net loss for the quarter ended June 2022, at Rs 7,297 crore as against a loss of Rs 7,319 crore recorded during the same period a year ago. On a sequential basis however, the loss widened from Rs 6,563 crore during the January - March period.
Consolidated revenues for the third-largest telecom player in the country rose 13.8 percent on-year to Rs 10,407 crore as compared to Rs 9,144 crore registered in the year-ago quarter. This was the highest revenue growth for the company since the merger of two entities. On a sequential basis, the revenue was flat with a marginal increase of 1.7 percent from Rs 10,229 crore recorded in the previous quarter.
The bottomline continued to be impacted by the rise in finance costs and higher expenses related to roaming and access charges, along with increase in marketing, content, customer acquisition and service costs.
“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” said Ravinder Takkar, MD & CEO.
Aided by tariff hikes, the average revenue per user (ARPU) for the quarter improved 23.4 percent on year to Rs 128 as against Rs 104 during the same period last year.
The company saw its subscriber base decline to 240.4 million customers as against 243.8 million at the end of the pervious quarter. However, its 4G subscriber base grew by one million customers and the 4G subscriber base now stands at 119.0 million.
Subscriber churn was marginally higher at 3.5 percent compared to 3.4 percent during the January – March period.
“We continue to see high data usage per 4G customer at ~14.3 GB/month with the total data traffic witnessing healthy sequential growth of 3.6 percent”, the company said in its earnings release.
EBITDA (earnings before interest, tax, depreciation and amortization) for the quarter at Rs 4,328 crore declined by 380 bps on year from Rs 4,649 crore in the year ago period.
During the reported quarter, the company spent Rs 840 crore on capex as against the capex of Rs 1,210 crore spent during the January – March period.
The total gross debt (excluding lease liabilities and including interest accrued but not due) at the end of the quarter stood 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 & cash equivalents at the end of the quarter stood at Rs 860 crore and net debt was at Rs. 1,98,220 crore.