Mumbai: Vodafone Idea ( Vi) narrowed its net loss for the second straight quarter, aided by an improving subscriber mix of higher-paying 4G/5G users, lower finance costs and a one-time exceptional gain.
During the September quarter, Vi's net loss reduced to ₹5,524 crore versus ₹6,608 crore in the previous quarter. While the company has slowed subscriber churn over recent quarters, the third-largest telco continues to lose users to larger rivals Reliance Jio and Bharti Airtel.
The joint venture between the UK's Vodafone Group and India's Aditya Birla Group has completed 5G rollout across all 17 circles where it holds spectrum. Its 4G coverage expanded to 84% of the population and overall data usage rose 21%, the company said. This follows record-high data consumption in the prior quarter.
"We continue to make steady progress towards our strategic intent of delivering superior customer experience... We are focused on increasing our 4G coverage to 90% of the population and expanding our 5G footprint in geographies with rising 5G handset adoption," said Abhijit Kishore, CEO, Vodafone Idea.
Vi's average revenue per user (ARPU), a key performance metric, rose sequentially to ₹167 in the September quarter from ₹165. The 4G/5G subscriber base increased to 127.8 million from 127.4 million. Total subscribers as of September-end declined to 196.7 million from 197.7 million in the prior quarter.
Quarterly revenue from operations inched up 0.8% on-quarter to ₹11,195 crore.
The telco has been reporting losses since the merger of Vodafone India and Idea Cellular in August 2018. Its stressed cash position and mounting debt have constrained investments in expanding 4G networks and launching 5G services, leading to accelerated subscriber declines, analysts said.
Having already raised about ₹24,000 crore in equity, the company is in talks with a consortium of banks to secure up to ₹25,000 crore and additional non-fund facilities of up to ₹10,000 crore, it had earlier stated.
Kishore said the company continues to spend on capex and is negotiating with lenders to raise debt financing to support broader capital expenditure plans of ₹50,000-55,000 crore.
During the September quarter, Vi's net loss reduced to ₹5,524 crore versus ₹6,608 crore in the previous quarter. While the company has slowed subscriber churn over recent quarters, the third-largest telco continues to lose users to larger rivals Reliance Jio and Bharti Airtel.
The joint venture between the UK's Vodafone Group and India's Aditya Birla Group has completed 5G rollout across all 17 circles where it holds spectrum. Its 4G coverage expanded to 84% of the population and overall data usage rose 21%, the company said. This follows record-high data consumption in the prior quarter.
"We continue to make steady progress towards our strategic intent of delivering superior customer experience... We are focused on increasing our 4G coverage to 90% of the population and expanding our 5G footprint in geographies with rising 5G handset adoption," said Abhijit Kishore, CEO, Vodafone Idea.
Vi's average revenue per user (ARPU), a key performance metric, rose sequentially to ₹167 in the September quarter from ₹165. The 4G/5G subscriber base increased to 127.8 million from 127.4 million. Total subscribers as of September-end declined to 196.7 million from 197.7 million in the prior quarter.
Quarterly revenue from operations inched up 0.8% on-quarter to ₹11,195 crore.
The telco has been reporting losses since the merger of Vodafone India and Idea Cellular in August 2018. Its stressed cash position and mounting debt have constrained investments in expanding 4G networks and launching 5G services, leading to accelerated subscriber declines, analysts said.
Having already raised about ₹24,000 crore in equity, the company is in talks with a consortium of banks to secure up to ₹25,000 crore and additional non-fund facilities of up to ₹10,000 crore, it had earlier stated.
Kishore said the company continues to spend on capex and is negotiating with lenders to raise debt financing to support broader capital expenditure plans of ₹50,000-55,000 crore.
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