 "Vodafone Idea Q3 results: Net loss narrows marginally to Rs 6,609 crore")
India's Vodafone Idea reported a smaller-than-expected third-quarter loss on Tuesday, as the telecom operator's per-user revenue continued to be boosted from July's tariff hikes.
Vodafone Idea- 22.6 per cent owned by the Indian government- was formed by a merger between the Indian arm of the UK's Vodafone Group and Aditya Birla Group's Idea Cellular in 2018.
It has posted a loss in every quarter as it continues to lose market share.
The company's consolidated loss after tax narrowed to Rs 6,609 crore ($762.20 million) in the quarter ended December 31, from Rs 6,986 crore a year earlier.
The loss was smaller than analysts' average estimate of Rs 6,978 crore, according to data compiled by LSEG.
Vodafone Idea's average revenue per user (ARPU), a key performance metric for telecom firms, rose 4.2 per cent from the previous quarter and 19.3 per cent from a year earlier to Rs 173, boosted by an increase in mobile plan rates.
However, the key metric lagged peer Reliance Industries -owned Jio's Rs 203.30 and Bharti Airtel's Rs 245.
All three mobile carriers' ARPUs have grown between 12 per cent and 18.5 per cent as of December-end after a tariff hike in July marked an industry-wide shift in strategy from competing for market share to increasing profitability.
Airtel and Jio have reported upbeat quarterly profits.
Vodafone India's user base declined 2.5 per cent sequentially and 7.2 per cent year-on-year to 199.8 million as of December 31, lagging behind Jio's 482.1 million and Airtel's 414 million.
Its revenue from operations rose about 4.2 per cent to Rs 11,117 crore, missing analysts' estimates of Rs 11,254 crore, while its total expenses shrunk 2.5 per cent led by a dip in network expenses.
Vodafone Idea's shares closed 3.2 per cent lower ahead of results.
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