VIL Q3 Net Loss Narrows, ARPU Up | Telecom News

New Delhi, Jan 29 (PTI) Vodafone Idea (VIL) on Monday said its net loss narrowed to Rs 6,986 crore for the December 2023 quarter, helped by Rs 755.5 crore one-time exceptional gain, while the average revenue per subscriber improved for the ailing telco.

VIL's net loss stood at Rs 7,990 crore in the year-ago period.

For the cash-strapped telco - which has been struggling to keep up with the larger rivals like Reliance Jio and Bharti Airtel in the hugely competitive Indian telecom market - the revenue from operations remained nearly flat at Rs 10,673.1 crore year-on-year.

The revenue from operations was pegged at Rs 10,620.6 crore in the third quarter of FY23.

In a release, the company said its ARPU - a key monitorable for telecom companies - stood at Rs 145 in the reporting quarter against Rs 135 in the third quarter of FY23. This translates into a year-on-year growth of 7.4 per cent.

"ARPU improved to Rs 145, up 7.4 per cent on YoY basis... primarily aided by a change in entry-level plan and subscriber upgrades," the release said.

The total data traffic for the quarter witnessed a year-on-year growth of 4.2 per cent.

The company's expenses in Q3 FY24 were lower on a year-on-year and sequentially basis.

VIL has underlined improving subscriber mix, 4G subscriber additions and changes in entry-level plans, among its key highlights.

The 4G subscriber base increased to 125.6 million from 121.6 million in Q3 FY23.

VIL's Q3 scorecard was aided by an exceptional item representing a gain of Rs 755.5 crore, "arising out of the Telecom Disputes Settlement and Appellate Tribunal (TDSAT) ruling and accepted by the telecom department.

The company's net worth stands at a negative Rs 97,931.9 crore, and the net working capital (excluding short-term borrowings, future lease liability and certain accruals towards pending litigations) stands at negative Rs 20,643 crore.

As of December 2023, the total debt of the group stands at Rs 2,14,964 crore. As of December 2023, an amount of Rs 2,767.6 crore has been reclassified from non-current borrowings to current maturities of long-term debt for not meeting certain covenant clauses under the financial agreements.

"The Group has exchanged correspondences and continues to be in discussion with the lenders for the next steps/waivers. The existing debt payable by December 31, 2024, is Rs 5,385.4 crore," the company said in a note alongside the financial results.

The telco said that as of date, the group has met all its debt obligations payable to its lenders/banks and financial institutions, along with applicable interest. The company has utilised an extended credit period to discharge some of its contractual obligations.

"Further, certain vendors have asked for payment of their overdue outstanding. The company continues to be in discussion with them to agree to a payment plan. Further, one of the promoters has confirmed its financial support to the extent of Rs 2,000 crore," it said.

Vodafone Idea CEO Akshaya Moondra said: "We are pleased to report highest EBITDA of Rs 21.4 billion in the last 11 quarters. In line with the evolving industry landscape and changing customer needs, we have revamped our offerings as well as focusing on our execution to effectively compete in the market".

As a result, the company has been able to grow its 4G subscribers and ARPUs consecutively for the last 10 quarters.

"We remain engaged with various parties for fundraising to make required investments for network expansion, including 5G roll-out," Moondra added.