NEW DELHI: Vodafone Idea Limited (VIL) Thursday posted a loss of Rs 6438.8 crore for the third quarter of the fiscal, following significant subscriber erosion and statutory payments and outstanding.
Vodafone Idea’s consolidated revenue from operations increased to Rs 11,089 crore in the December quarter from Rs 10,844 crore a quarter ago.
Since the Jio’s foray in 2016, the Indian telecom sector has been bleeding with mounting losses for incumbents— Bharti Airtel and Vodafone Idea— also plagued with high statutory dues that principally included liability on account of top court’s ruling on adjusted gross revenue (AGR).
During the quarter, the telco has lost 7 million people.
The subscriber base has declined to 304 million in Q3 from 311 million in Q2FY20. Subscriber churn further reduced in Q3FY20, reaching 3.3% compared to 3.5% in Q2FY20 and 3.7% in Q1FY20,” the Mumbai-based telecom company in a statement said.
However, the average revenue per user for Q3 improved to Rs 109 from Rs 107 in Q2FY20. The company believes that the tariff hike effective from December would improve the company’s financials.
“We continue to actively engage with the government seeking relief on the AGR and other matters. Post dismissal of our review petition, we have filed for modification of the Supplementary Order with Hon’ble Supreme Court,” Ravinder Takkar, MD & CEO, Vodafone Idea Limited said.
The company, according to him, is on track to deliver operational synergy targets by Q1FY21.
Takkar further said that the telco would remain focused on rapid network integration as well as 4G coverage and capacity expansion in our key markets.
“We now lead the league tables on 4G data download speeds across several states, metros and large cities. We believe this is leading to improved customer experience which has contributed to robust 4G subscriber additions,” the top executive added.