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Vodafone Idea Q3 results: Net loss at 4,532 crore, slight jump in revenue

Vodafone Idea said that it is in active discussions with potential investors to raise capital (MINT_PRINT)Premium
Vodafone Idea said that it is in active discussions with potential investors to raise capital (MINT_PRINT)

  • Revenue grew 1% quarter-on-quarter to 10,894 crore on the back of improved subscribers and higher 4G additions during Q3FY21
  • During December quarter, the average revenue per user (ARPU) rose to 121 from 109 in the September quarter

Vodafone Idea on Saturday reported a consolidated net loss of 4,532.4 crore for the quarter ended on 31 December. The telecom giant posted net loss of 7,218.5 crore in the previous quarter. The quarterly losses narrowed on the back of a one-time gain of 2,118.9 crore, on account of the sale of its 11.5% stake Indus Towers to the merged Bharti Infratel-Indus Towers entity.

During Q3FY21, the average revenue per user (ARPU) rose to 121 from 109 in the September quarter.

The consolidated operating profit or Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) for the quarter rose 3.2% on a quarter-on-quarter basis to 4,286.2 crore. The operating margin expanded 80 basis points from the previous quarter to 39.3%." "EBITDA improvement was driven by higher revenue as well as incremental opex savings from our cost optimization initiatives," the telecom service provider said in a statement.

Revenue grew 1% quarter-on-quarter to 10,894 crore on the back of higher 4G additions and improved service quality during Q3FY21.

Vodafone Idea said that "it is in active discussions with potential investors to raise capital." The company's board had approved fund raising of 25,000 crore through a mix of debt and equity.

“In Q3FY21, we improved subscriber retention and operating performance, supported by Vi GIGAnet, which remains the fastest 4G network in India, as per Ookla as well the network with highest rated voice quality as per TRAI - a testimony to our superior network," said Ravinder Takkar, managing director and chief executive officer, Vodafone Idea Limited, said.

"We remain focused on executing our strategy, and our cost optimization plan remains on track to deliver the targeted savings. The Board has approved funds raising to support our strategic intent and we are in active discussions with potential investors."

Vodafone India earlier revealed cost savings target of 4,000 crore by December 2021. The telecom operator said it has achieved 50% of the targeted annualised savings on a run-rate basis during the December quarter.

India's third largest telecom operators' subscriber base declined 2 million in the December quarter from 269.8 million in the previous quarter. Vodafone Idea’s 4G subscriber base stood at 109.7 million during the quarter under review, against 3.6 million in the September quarter.

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