Vodafone Idea’s Q2 loss widens to ₹7,596 crore
- Vodafone Idea reported a net loss of ₹7,596 crore in Q2, 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 to ₹131 from ₹128 in the previous quarter.
- Vi’s CEO Akshaya Moondra said the company is engaging with lenders and investors to raise funds for network expansion and 5G rollout.
AdvertisementVodafone Idea (Vi), India’s third largest telecom company, today reported a net loss of ₹7,596 crore in Q2, from ₹7,132 crore a year ago. The telco’s revenues during the quarter increased 12.9% year-on-year to ₹10,611 crore.
However, Vi is now earning more from its customers. Its average revenue per user (ARPU) has increased both sequentially and on-year basis. At the same time, it has not been able to stem subscriber loss. In the September quarter, the telco lost 6 million subscribers, and its subscriber base stood at 234.4 million as at September 30, 2022.
Vi’s ARPU edged up to ₹131 during Q2, from ₹128 in the previous quarter, and ₹109 in the same period last year.
On a positive note, the telco reported a growth in the 4G subscriber base during Q2, with total 4G subscribers at 120.6 million at the end of the quarter, up from 119 million in the previous quarter. For comparison, in the same period previous year, Vi’s 4G subscriber base stood at 116.2 million.
However, the telco’s pace of 4G subscriber addition has slowed down in Q2 this year – Vi added 1.5 million 4G subscribers this quarter, as against 3.3 million in the same period last year.
Its net worth stood at a negative ₹76,417 crore, worsening 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:
|Particulars||Q2 FY23||Q1 FY23||Q2 FY22|
|Revenue||₹10,611 crore||₹10,407 crore||₹9,402 crore|
|Net profit||-₹7,596 crore||-₹7,297 crore||-₹7,132 crore|
Source: Company reports
Engaging with lenders and investors for 5G rollout, says Vodafone Idea
While its rivals Reliance Jio and Bharti Airtel have started rolling out 5G services in select parts of the country, Vi says it is in talks with stakeholders to get its 5G rollout going.
“We continue to remain engaged with our lenders and investors for further fund raising to make required 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 worth ₹43,084 crore and ₹88,078 crore, respectively.
Subscriber churn worsens, but engagement sees an uptick
Subscriber churn, which refers to the number of subscribers which have stopped paying for services, worsened during the quarter to 4.3%. For context, it stood at 2.9% in the same period last year, and 3.5% in the previous quarter.
On the other hand, customer engagement edged up during the September quarter. Data usage stood at 15GB per month (per user) in Q2, up from 14.5GB a year ago.
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