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Vodafone Idea reports Rs 5,005 crore Q3 loss, approves rights issue of up to Rs 25,000 crore

The telecom firm had posted a loss of Rs 4,973.80 crore in the previous quarter.

Last Updated: Feb 06, 2019, 05.52 PM IST
Vodafone Idea on Wednesday reported a loss of Rs 5,004.60 crore for the quarter ended December 31. The telecom firm had posted a loss of Rs 4,973.80 crore in the sequential quarter ended September 30. This was first quarterly earnings by the company since its merger.

Tax expenses of the telco soared to Rs 1,999.70 crore during December quarter over Rs 45.40 crore in July-September period.

India’s unit of UK-based Vodafone group and Idea Cellular had merged in September last year to create India’s largest mobile phone company with the most subscribers and revenue share, displacing Bharti Airtel, which has held the top spot for about 15 years.

The board of the company also approved a rights issue of up to Rs 25,000 crore.

Average revenue per user (Arpu) rose to Rs 89 in Q3FY19 from Rs 88 in Q2FY19.

Gross debt as of December 31, stood at Rs 1,23,660 crore, including deferred spectrum payment obligations due to the government of Rs 91,480 crore. Cash and cash equivalents were Rs 8,900 crore, resulting in net debt of Rs 1,14,760 crore against Rs 1,12,510 crore in Q2FY19.

Ebitda increased 146.38 per cent on a sequential basis to Rs 1,136.80 crore in Q3FY19 over Rs 461.40 crore in Q2FY19. Ebitda margin jumped to 9.70 per cent from 6 per cent during the same period.

Commenting on the earnings numbers, Vodafone Idea in a release said: “Our headline tariffs remained stable during the quarter. However customers continued to migrate to lower Arpu plans. Within this context, the company has implemented various initiatives to improve its revenue, profitability and competitive standing in line with its stated strategy, which began to impact performance positively towards the end of the quarter. As a result, the pace of QoQ revenue decline slowed to 2.2 per cent in the quarter, compared to a 7.1 per cent reduction in Q2, and we experienced growth in daily revenue on a month-on-month basis during December, which continued into January 2019”.
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