Vodafone Idea posts ` 5,005- crore loss
Vodafone Idea on Wednesday reported its second straight quarterly loss since Vodafone Plc merged its Indian operations with Idea Cellular in August last year where the loss after tax was Rs 5,005 crore in the quarter ended December 31.
The company said the quarterly numbers were not comparable on account of the merger last year.
Competition in the country’s telecom industry has ramped up since Reliance Jio Infocomm, owned by billionaire businessman Mukesh Ambani, entered the market in 2016, leading to huge price cuts across the industry which resulted in lower average revenue per user ( ARPU) and rising debt. While Jio reported a 65 per cent jump in quarterly profit, rival Bharti Airtel posted a 72 per cent profit decline.
The shake- up led to consolidation, with Vodafone Plc merging its Indian operations with Idea Cellular last year in a deal worth $ 23 billion.
Earlier this year, Vodafone Idea announced its intention to raise Rs 25,000 crore through a rights issue.
Revenue from operations in the third quarter was Rs. 11,765 crore, while its average revenue per user ( ARPU) came in at Rs 89. The Mumbai- based company said its total expenses for the quarter were Rs 18,226 crore, offset in part by a Rs 2,001 crore tax gain. Vodafone Idea closed 1.48 per cent lower while the broader Mumbai market ended up 1.17 per cent.
The company said the quarterly numbers were not comparable on account of the merger last year. Total income of Vodafone Idea stood at Rs 11,982.8 core during the reported quarter. The income increased by 52 per cent compared to Rs 7,878.6 crore in the previous July- September quarter.
The books of Vodafone Idea recorded comprehensive loss of Rs 1,284.5 crore in the same quarter a year ago. However, the year- on- year figures are not comparable as the merger between Vodafone and Idea completed on August 31, 2018.
The loss, however, widened on sequential quarter basis.
Total income of Vodafone Idea stood at Rs 11,982.8 core during the reported quarter. The income increased by 52 per cent compared to Rs 7,878.6 crore in the previous July- September quarter.