Voda Idea Q1 results: Net loss narrows to Rs 6,432 cr on reduced expenses

Indian telecom operator Vodafone Idea reported a smaller-than-expected first-quarter loss on Monday, helped by a fall in expenses.
 

The company posted a consolidated loss after tax of Rs 6,432 crore ($766.4 million) for the quarter ended June 30, compared to a loss of Rs 7,840 crore a year earlier.
 

Analysts, on average, were expecting a loss of Rs 7,576 crore, according to LSEG data.
 

Vodafone Idea's revenue slipped 1.4 per cent to Rs 10,508 crore, below analysts' expectation of Rs 10,592 crore.
 

However, its total expenses fell 7 per cent to Rs 17,191 crore, helped by lower finance costs, network expenses and license fees.
 

Its 4G subscriber base grew 3 per cent year-on-year to Rs 12.67 crore, as more subscribers migrated away from 2G. However, its total subscriber count fell about 5.1 per cent to Rs 21.01 crore.
 

The company, formed by a merger between the Indian arm of UK's Vodafone Group and Aditya Birla Group's Idea Cellular in 2018, has posted a loss in every quarter as it lost ground to larger rivals Bharti Airtel and Reliance Jio.
 

The company had in April raised about 200 billion rupees with an aim to launch 5G services and expand 4G coverage to catch up with Airtel and Jio, which have already launched 5G services in the country.
 

It said it expects to grow its 4G coverage by about 16 million by the end of September 2024.
 

The company's average revenue per user (Arpu) grew 5 per cent to Rs 146 from last year, but still lagging behind Jio and Airtel, whose Arpus stood at Rs 181.7 and Rs 211, respectively.
 

The three companies had raised tariffs for the first time in three years in late-June.
 

Airtel and Jio previously reported upbeat results on the back of higher subscriber additions.