Vodafone Idea Q3 Results: Net Loss Widens As Expenses Rise
Vodafone Idea Ltd.’s quarterly loss widened owing to an increase in its marketing and finance costs, while roaming and access charges, too, rose.
Net loss stood at Rs 7,230.9 crore in the quarter ended December, according to its exchange filing. That compares with the Rs 6,998-crore loss estimate of analysts tracked by Bloomberg.
Revenue rose 3.3% quarter-on-quarter to Rs 9,717.3 crore. Analysts had pegged revenue at Rs 9,772.5 crore. Other income rose 18.5% to Rs 34.5 crore.
Operating profit fell 1.2% to Rs 3816.5 crore.
Margin contracted to 39.3% from 41.1%.
Average revenue per user—the amount an operator earns per subscriber per month—rose to Rs 115 from Rs 109.
Revenue rose owing to higher ARPU that was supported by tariff hikes during the quarter. The full impact of tariff hikes will be visible in the fourth quarter. Monthly churn rate rose 3.4% compared with 2.9% in September 2021.
Gross debt, excluding lease liabilities, as of December was Rs 1,98,980 crore, comprising deferred spectrum payment obligations of Rs 1,11,300 crore and AGR liability of Rs 64,620 crore. It also includes debt from banks and financial institutions of Rs 23,060 crore.
Vodafone Idea's net debt rose 1.5% sequentially to Rs 1,97,480 crore. The carrier has agreed to convert interest on deferred spectrum payments and statutory dues into equity, giving the government a nearly 36% stake under the rescue plan.
Capex spend in the third quarter was Rs 1,050 crore compared with Rs 1,300 crore in the second quarter.
The telecom operator lost 58 lakh subscribers in the reported period to 24.72 crore. Its 4G subscriber base rose 0.69% sequentially to 11.7 crore.
Data volumes declined 5% quarter-on-quarter to 5,242 billion megabytes.