Company lags on operations front too
Vodafone Idea’s net loss expanded yet again, coming in at Rs 7,319 crore for the April-June quarter. The net loss is much higher than what analyst expected at Rs 6,387 crore, and wider compared to the preceding March quarter loss of Rs 7,023 crore.
The company continued to lag on the operational front also. Revenues declined nearly 5% on a quarter-on-quarter basis to Rs 9,152 crore, much below analyst expectations of Rs 9,592.05 crore. However, the decline was lesser compared to the January-March period, when revenues fell 12% sequentially.
The Ebitda (earnings before interest, tax, depreciation and amortisation) suffered a sharp decline of nearly 16% q-o-q to Rs 3,708 crore, missing analyst expectations of Rs 4,286.51 crore. Consequently, Ebitda margins tumbled 540 basis points to 40.5% q-o-q.
The company’s average revenue per user (Arpu) during the quarter declined to Rs 104 compared to Rs 107 in the preceding quarter. Minutes of voice usage also declined to 641 minutes compared to 657 in the preceding quarter. Average data consumption, however, rose to 14,493 MB compared to 13,068 MB in the previous quarter. Subscriber churn rose to 3.5% compared to 3% in the preceding quarter.
Ravinder Takkar, MD & CEO, Vodafone Idea, said, “The severe second wave caused significant disruptions and slowdown in economic activities. We continue to focus on executing our strategy to keep our customers ahead, and our cost optimisation plan remains on track to deliver the targeted savings. We are in active discussion with potential investors for fund raising, to achieve our strategic intent.”