Vodafone Idea’s second quarter loss rises to ₹7,596 crore

0
48

  • Vodafone Idea reported a net loss of 7,596 crore in the second quarter from ₹7,132 crore a year ago.
  • The telco also lost six million subscribers during the quarter, but its average revenue per user (ARPU) improved from ₹ 128 in the previous quarter of 131.
  • Akshaya Moondra, CEO of Vi, said the company is working with lenders and investors to raise funds for network expansion and 5G rollout.

Vodafone Idea (Vi), India’s third largest telecom company, today reported a net loss of ₹7,596 crore in the second quarter from ₹7,132 crore a year ago. The telecom provider’s revenues increased 12.9% year-over-year to ₹10,611 crore during the quarter.

However, Vi now earns more from its customers. Average revenue per user (ARPU) has increased both sequentially and year-over-year. At the same time, it has not been able to counter the loss of subscribers. In the September quarter, the telco lost 6 million subscribers and its subscriber base was 234.4 million as of September 30, 2022.

Vi’s ARPU increased to 131 during the second quarter from ₹128 in the prior quarter and ₹109 in the same period last year.

On a positive note, the telco reported 4G subscriber growth during the second quarter, with a total of 120.6 million 4G subscribers at the end of the quarter, up from 119 million in the previous quarter. In comparison, in the same period last year, Vi’s 4G subscriber base was 116.2 million.

Telcos’ pace of adding 4G subscribers, however, has slowed in the second quarter this year — Vi added 1.5 million 4G subscribers this quarter, up from 3.3 million in the same period last year.

His net worth was negative ₹76,417 crore, deteriorating from negative 69,261 crore in the previous quarter and negative ₹52,686 crore a year ago.

Here’s Vodafone Idea’s Q2 in numbers:

ParticularitiesQ2 FY23Q1 FY23Q2 FY22
Revenue₹10,611 crore₹10,407 crore₹9,402 crore
Net profit-₹7,596 crores-₹7,297 crore-₹7,132 crores
ARPU₹131₹128₹109

Source: Company Reports

Partnering with lenders and investors for 5G rollout, says Vodafone Idea

While rivals Reliance Jio and Bharti Airtel have started rolling out 5G services in certain parts of the country, Vi says it is in talks with stakeholders to kick-start the rollout of 5G.

“We remain engaged with our lenders and investors for further fundraising to make the necessary investments for network expansion and 5G rollout,” said Akshaya Moondra, CEO, Vi.

Vi acquired 5G spectrum worth 18,799 crore, payable in 20 annual installments. Its rivals Airtel and Reliance Jio acquired spectrum of ₹43,084 crore and ₹88,078 crore respectively.

Subscriber churn is increasing, but engagement is increasing

Subscriber churn, which refers to the number of subscribers who are no longer paying for services, deteriorated to 4.3% over the quarter. For context, it was 2.9% in the same period last year and 3.5% in the previous quarter.

On the other hand, customer engagement increased during the September quarter. Data usage was 15 GB per month (per user) in the second quarter, compared to 14.5 GB a year ago.

ALSO SEE:

September earnings are on track, but time to dampen optimism, says Kotak Institutional Equities

HDFC reports an 18% year-over-year increase in net profit in the second quarter to ₹4,454 crore

Interest rates on deposits must go up, experts say as FD’s share of household financial assets falls

LEAVE A REPLY

Please enter your comment!
Please enter your name here