Vodafone Idea reports Q3 net loss of Rs. 6,986 crore
Vodafone Idea has experienced a net loss of Rs. 6,985.9 crore in Q3 FY24. This marks a 12.56% decrease from the Rs. 7,990 crore loss during the same period last year. The company's revenue saw a slight increase of 0.49%, reaching Rs. 10,673.1 crore compared to Rs. 10,621 crore in the third quarter of the previous fiscal year.
EBITDA and ARPU improve
The company's EBITDA (earnings before interest, taxes, depreciation, and amortization) rose by 140 basis points to 40.8% in the quarter, up from 39.4% in the prior year. The blended average revenue per user (ARPU) grew to Rs. 145 in the quarter, in comparison to Rs. 135 in the previous year. The total number of data subscribers increased to 13.74 crore from 13.53 crore in the same quarter of the previous year.
Net debt stands at over Rs. 2 lakh crore
As of December 2023, Vodafone Idea's regulatory filing revealed a total gross debt of Rs. 2,14,960 crore. This includes deferred spectrum payment obligations (Rs. 1,38,240 crore), AGR liability of Rs. 69,020 crore to the government, optionally convertible debentures (Rs. 1,660 crore), and bank and financial institution debt (Rs. 6,050 crore). The net debt amounted to a sum of Rs. 2,14,640 crore.
Vodafone Idea staring at subscriber loss
Emkay Global, a local brokerage firm, anticipated Vi's subscriber loss to increase again in Q3, with a loss of three million compared to a 1.6 million loss in Q2 FY24. Kotak Institutional Equities expects Bharti Airtel and Reliance Jio to gain market share at Vi's expense, particularly among premium subscribers. This is due to Vi's cash constraints, long-delayed fund-raise, and uncertainty about the 5G launch.
