Vodafone Idea Q3 loss widens to Rs 7,230 crore amid dip in revenue, users

Gross revenue down 10.8% to Rs 9,717 crore, EBITDA slips by same margin to Rs 3,816 crore

Vodafone Idea (Vi) losses widened 59.5 per cent to Rs 7,230 crore in Q3 FY2022 on a year-on-year (YoY) basis amid fall in revenue and subscribers. In the same period last year, the company had posted a loss of Rs 4,532 crore.

Gross revenue decreased 10.8 per cent to Rs 9,717 crore in the third quarter of FY 2022 while earning before interest tax and depreciation and amortisation (EBITDA) slipped by the same margin to Rs 3,816 crore.

The company’s third quarter results last year had benefited from the exceptional income of Rs 1,686 crore, which included gains from stake sale in Indus.

On a sequential basis, however, the company fared better, registering 3.3 per cent increase in revenue. The increase was largely due to tariff hikes taken by mobile service providers in November. The average revenue per user (ARPU) for the quarter rose 5.2 per cent to Rs 115 on a sequential basis. The company, however, lost 5.8 million customers during this period.

“While the overall subscriber base has declined as a result of tariff interventions, the 4G subscriber base remained resilient on the back of superior data and voice experience offered by Vi GIGAnet. We remain focused on executing our strategy to improve our competitive position and win in the marketplace,” the company’s managing director Ravinder Takkar said in a statement.

The company’s 4G subscriber base rose sequentially to 117 million from 116.2 million in the second quarter.

The company also said it had achieved 90 per cent of its targeted savings in operating expenses on a run rate basis in Q3 FY22 against Rs 4,000 crore annualised saving target.

As of December-end, the company’s total gross debt (excluding lease liabilities and including interest accrued but not due) stood at Rs 1.98 trillion. This comprised deferred spectrum obligations, adjusted gross revenue liability and bank loans.