Vodafone Idea’s net loss for the October-December quarter narrowed to Rs 6,986 crore from Rs 8,738 crore in the preceding quarter. The narrowing of the losses was due to fall in total expenses as well as one-time gain of Rs 755.5 crore basis the recent Telecom Disputes Settlement and Appellate Tribunal’s (TDSAT) order, which asked the department of telecommunications (DoT) to adjust the amount towards its licence fee and spectrum usage charges.
A reduction in the finance cost, which includes interest and charges on borrowings; network expenses; licence fee and spectrum usage charges, depreciation, among other expenses, also helped in narrowing the losses.
Bloomberg had estimated the company’s net losses at Rs 7,398 crore. Revenues from operations during the period fell 0.4% q-o-q to Rs 10,673.1 crore, missing the Bloomberg estimate of a sequential increase of 2.2% to Rs 10,958 crore.
The company lost 4.6 million mobile subscribers, taking its user base to 215.2 million at the end of December. The blended churn of subscribers rose to 4.3% during the quarter compared to 4.1% in the July-September period.
Consolidated Ebitda surpassed the estimates at Rs 4,350 crore and rose 1.6% sequentially due to a fall in operating expenses like network expenses, roaming and access charges, and licence fee. Bloomberg had pegged Ebitda at Rs 4,233 crore. Ebitda margin expanded 80 basis points to 40.8% from 40% in the preceding quarter.
On the operational front, Vodafone Idea’s average revenue per user (Arpu) rose 2.1% q-o-q sequentially to Rs 145. The reason for increase in Arpu can be attributed to increase in 4G subscribers, consumer upgrades, and increase in entry-level tariffs. In the October-December quarter, the company’s 4G subscriber base increased to 125.6 million from 124.7 million in the preceding quarter.
The company’s average data usage per 4G customer fell to 15.7 GB, compared to 16.19 GB in the preceding quarter. The company’s total data volume fell 1.9% q-o-q to 6 billion GB.
Vodafone Idea also witnessed a fall in the total voice consumption on the network, which fell 1.2% q-o-q to 0.4 trillion minutes. The company’s average minute of usage on the network rose marginally to 614 minutes.
Owing to weak financial performance during the quarter, high debt levels, muted cash flow position, the auditors of Vodafone Idea continue to flag uncertainty on the company’s ability to continue as a going concern.
At the end of the October-December quarter, Vodafone Idea’s gross debt (excluding lease liabilities and including interest accrued but not due) rose to Rs 2.15 trillion from Rs 2.13 trillion in the preceding quarter.
The gross debt comprises deferred spectrum payment obligations of Rs 1.38 trillion, AGR liabilities of Rs 69,020 crore that are due to the government, debt from banks and financial institutions of Rs 6,050 crore and optionally convertible debentures amounting to Rs 1,660 crore.
The company said its debt from banks and financial institution has reduced by Rs 7,140 crore during the last one year. The bank debt was at Rs 13,190 crore in the year ago period.
By December 2024, the company has an obligation to pay debt of Rs 5,385.4 crore. The company said its net working capital (excluding short-term borrowing, future leased liabilities and certain accruals towards pending litigations) stands at negative Rs 20,643 crore.
“We remain engaged with various parties for fund raising, to make required investments for network expansion, including 5G rollout,” Akshaya Moondra, CEO of Vodafone Idea, said in a statement. The company’s capex spend for the quarter stood at Rs 330 crore.