Debt-laden telecom operator Vodafone Idea Ltd reported a wider-than-expected loss for the second quarter on Thursday, hit by a continued decline in subscribers and better bills.
The consolidated loss after tax widened to 75.96 billion Indian rupees ($916.14 million) for the three months ended Sept. 30, from 71.32 billion rupees, a 12 months in the past. Analysts, on common, anticipated the corporate to incur a lack of 69.25 billion rupees.
Vodafone Idea mentioned its subscriber base declined to 234.4 million from 240.4 million within the first quarter, whereas whole bills rose 10% to 183.02 billion rupees.
Nevertheless, its common income per consumer (ARPU), a key efficiency indicator for telecom companies, noticed an increase of 19.5% to 131 rupees helped by tariff hikes. Within the earlier quarter, ARPU stood at 128 rupees.
ARPU of bigger rivals Reliance Jio and Bharti Airtel was at 177.2 rupees and 190 rupees within the quarter, respectively.
Vodafone Concept, a merger between the Indian unit of Vodafone Group and Aditya Birla Group’s Concept Mobile, was shaped in 2018 to face up to Reliance Jio’s worth struggle that disrupted the home telecom trade.
Vodafone Concept, nonetheless, has been posting losses since then, with subscribers switching to the larger rivals. Burdened with huge authorities debt and spectrum dues, it has been unable to strike a fund elevating deal.
The corporate was in continued talks with lenders and buyers for fund elevating for community enlargement and 5G rollout, Chief Government Akshaya Moondra mentioned in an announcement. The corporate’s web debt stood at 2.2 trillion rupees as of September finish. Income from operations rose 12.8% to 106.15 billion rupees.
In January, Vodafone Concept’s board authorized conversion of the curiosity on dues into fairness after the federal government introduced a aid bundle for the sector. Submit the conversion, the federal government could have a 35.8% stake within the firm.
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